Michigan Government and Economy

Michigan Government and Economy

Our government provides goods and services for citizens that private companies do not. 

These are for all citizens within an area. The city, county, and state governments provide different kinds of goods and services for people. 

Open Ended

What are some things that the government provides for us?

Poll

What are some things that the government provides for us?

• Parks / Trails

• Bridges / Roads

• Salt Trucks

• Libraries

• Safety Inspections

Open Ended

Now we see what the government provides for us. Where does all the money for these things come from?

Our government provides many goods and services for the citizens of Michigan. These goods and services include things like road repair, snow removal, libraries, state parks, museums, schools, and the state police. However, just because our state provides these things does not mean that they come for free. In order for all of the goods and services to operate, Michigan charges people taxes, fees, and fines.

Tax is the money that a person pays for a government service. These taxes are collected when people purchase goods and services (sales tax), own their own home or land (property tax), and have a job or own a business (income tax). The amount of tax paid to the government is different depending on what kind of tax is being paid. For example, we pay $0.06 sales tax on every dollar for goods and services we purchase (except unprepared foods, such as groceries). If you buy something for $10.00, your tax would be $0.60, and a total to be paid of $10.60.

Poll

Taxes are an amount of money paid to the government to do what services?

• Road Repair

• Schools

• Libraries

• Garbage Pickup

Our government also collects money in the form of fees. A fee is an amount of money paid to the government to do certain things. For example, to have a fishing license or a drivers license, citizens have to pay the government a fee. The amount a person pays and how often they have to pay it is different depending on the license – all licenses expire at some point. A drivers license fee is $25.00 the first time you get it, but is $18.00 each time you have to renew it.

Multiple Choice

Fees are an amount of money paid to the government to do what sort of activity?

• Fix Bridges

• Speeding

• Littering

• Get a Drivers License

Lastly, our state collects money through fines. A fine is an amount of money paid to the government when people break the law. The state of Michigan has many laws and the fine that a person has to pay is different depending on what law is broken. For example, if a person litters their fine could be as much as $800.00! Having state provided goods and services is important to our economy. The state provides people with government jobs as well as jobs in things like state parks and police. The government also hires companies to do work for them. That gives businesses money and keeps our economy healthy!

Multiple Choice

Fines are an amount of money people pay the government when they do what?

• Get a Fishing License

• Break the Law

• Skip School

Multiple Choice

Shema bought a new basketball for $19.99. Her total was $21.19. Is this a:

• Fee

• Fine

• Tax

Multiple Choice

Jon was pulled over for going 40 mph in a 35 mph zone. He is given a $150 ticket. Is this a:

• Fee

• Fine

• Tax

Multiple Choice

Katie bought a book that was $5.99. The total she had to pay was $6.35 Is this a:

• Fee

• Fine

• Tax

Multiple Choice

Taylor was caught littering in a state park and had to pay $25. Is this a:

• Fee

• Fine

• Tax

Multiple Choice

Zoe purchased a fishing license so she could go fishing with her friends. Is this a:

• Fee

• Fine

• Tax

Multiple Choice

Mark worked at a grocery store. He earned $800. The state took out $27. Is this a:

• Fee

• Fine

• Tax

Multiple Choice

Megan was fishing with Zoe without a fishing license and had to pay $50. Is this a:

• Fee

• Fine

• Tax

Multiple Choice

Jose went across the Mackinac Bridge while on vacation with his family and had to pay $5. Is this a:

• Fee

• Fine

• Tax

Multiple Choice

The Smith family goes to a state campground and pays $30 per night. Is this a:

• Fee

• Fine

• Tax

Multiple Choice

Abe owned a restaurant. At the end of the year he had to pay the state $4,000. Is this a:

• Fee

• Fine

• Tax

Multiple Choice

Tom was pulled over because his license plate was expired and had to pay $100. Is this a:

• Fee

• Fine

• Tax

Multiple Choice

Stacy paid $11 for a state park pass for the entire year. Is this a:

• Fee

• Fine

• Tax