19 Feb 3 Tidbits You Can Teach Your Child About Taxes
Education of young people is a debated topic within our society. The Tax Cuts and Jobs Act has a provision for 529 plans (e.g., prepaid tuition plans) to pay for K-12 tuition including private and religious schools. Many parents will use this opportunity to send their kids to schools of their choice. Since education is a necessary tool of success and tax-free dollars can be used for tuition, consider adding educating young ones about the institution of taxation in America. You may find the following items useful during your family education time:
- Levying taxes raises revenue for a government so that it can provide services, pay its debt, etc. for its citizens.
- We can thank the 16th Amendment of the United States Constitution for the federal income tax.
- The government expects self-assessment compliance with tax laws. Millions of taxpayers file tax returns annually. But, many people do not like to pay taxes.
Since the United States of America’s debt is trillions of dollars and its people have expectations of social services, federal taxation is not going away anytime soon. If it did, would we be the United States of America? As a side note, research your state revenue administrator’s provisions for 529 plans. They may differ from the federal provisions. Also, for more insight on this topic Google Taxation History of the United States. Best wishes!