Where Do Taxes Go?1 / 16

Part One · The line on the receipt

Dee buys a flashlight. It costs 10 dollars. At the register, the clerk says, "That is 10 dollars and 80 cents." Dee looks at her receipt. One line on it says tax. Where does that 80 cents go? Dee is made up. The rules in this book are real.

About Where Do Taxes Go?

A free Grade 3 story from the Peabody library, Level 8. It has 16 short pages and about 805 words, so it reads in a few minutes.

Words this story teaches

At reading level 8, Peabody's practice works on vocabulary, spelling; the level page says what is in each.

The same topic for other ages

This is the basic book of three about taxes, written for about ages 7 to 11 from the same checked facts.

Every topic at three levels

To print it or save it as a PDF, tap the ⓘ button above the story, then “Print this story”.

More stories at Level 8

All the Level 8 stories, or the whole library.

For teachers: read it to the class, questions and key
Questions and answer key (5)
  1. Why does the store send the tax to the government?
    • A. The state owns the store
    • B. The store is holding it for the government
    • C. The tax pays the clerk
    Show answerB. The store is holding it for the government
  2. In this book, what does federal mean?
    • A. Belonging to the whole country
    • B. Belonging to one town
    • C. Belonging to a store
    Show answerA. Belonging to the whole country
  3. Which tax helps local governments pay for schools, roads and police?
    • A. Sales tax on a flashlight
    • B. A fee for a tax return
    • C. Property tax
    Show answerC. Property tax
  4. What does the IRS do?
    • A. It runs the local schools
    • B. It collects federal taxes
    • C. It sets the price of gas
    Show answerB. It collects federal taxes
  5. In the year that ended September 30, 2026, which piece of each federal dollar was the biggest?
    • A. National defense
    • B. Medicare
    • C. Social Security
    Show answerC. Social Security

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