1EQQ8ZzGD

keep $1. Dad will use this money to buy some new locks for
the doors (defense spending). So if you do 4 chores, you get to
keep $10 and pay $10 in taxes.
You get to make the decision on how much money to
make, and how to spend it. Let's say you're a rich person and
will do 3-4 chores. Here are your options:
1. You can decide that all this sounds fair and do all your
chores for $10.
2. You can do some of your chores because it's not worth going
to bed on time for just $1.
3. You can vote for Mom to be the Government at the next
family meeting because she promises that if you do 4
chores you'll get to keep $12.
4. You can give $1 to your aunt (who's an accountant) because
she knows a special family rule about children who
do all their chores. She says you'll get to keep $13, pay $6
in taxes, and give her $1.
5. You can give $3 to your uncle (who's a lobbyist) because
he can convince your Dad to not tax you for your 3rd and
4th chores. He says you'll get to keep $14, pay $3 in taxes,
and give him $3.
Raising taxes on the rich doesn't work as well as we think it
will because rich people find ways to not pay the higher taxes.
Hopefully this example teaches about graduated tax rates
(how we try to make rich people pay more), how rich people
try to avoid paying taxes, and some of the ways the government
spends the taxes it collects. Maybe it also teaches about
democracy and why Government (Dad) can't make up bad
rules or you'll vote for Mom. Maybe it also makes the fiveyear-old
ask why his/her brother gets $1 for doing nothing.
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