Question

1. What does FICA consist of?
a. Health Insurance
b. Social Security & Medicare
c. Federal & State Taxes
d. Employer Sponsored Retirement
2. What are 2 examples of discretionary spending?
a. Social Security
b. Education
c. Military
d. Medicare
3. All of the following options are benefits we receive as a result of
government spending EXCEPT…
a. Air quality
b. Credit card debt forgiveness
c. Public school education
d. National Parks maintenance
3 Your Federal Income Tax
Receipt
This interactive calculator
allows you to see a “receipt”
for your taxes, detailing
exactly where your dollars
were spent.
Enter your federal income
taxes paid for the previous
year into the calculator. If
you didn’t pay federal
income taxes, enter $7,918
(taxes paid for a salary of
$67,521 - the median salary
of a U.S. household in 20201).
Then answer the questions
at right.
Estimated time: 5 mins
1. What’s one category you wish fewer taxes were spent on? Why?
2. What’s one category you wish more taxes were spent on? Why?
4 How to Read a Pay Stub
Reading your pay stub can
be challenging if you don’t
know where to start! Watch
this short video on how to
read a pay stub. Then follow
your teacher’s directions to
answer the questions.
Estimated time: 3 mins
1. What is the difference between gross pay and net pay?
a. Gross pay is before taxes and deductions are subtracted; Net pay
is your take-home pay.
b. Net pay is before taxes and deductions are subtracted; Gross pay
is your take-home pay.
c. There is no difference between gross and net pay.

Answer 1

1. What does FICA consist of?
- Answer: b. Social Security & Medicare
- (FICA is the payroll tax that funds Social Security and Medicare.)

2. What are 2 examples of discretionary spending?
- Answer: b. Education and c. Military
- (Discretionary spending is set in annual appropriations. Social Security and Medicare are mandatory/entitlement spending.)

3. All of the following options are benefits we receive as a result of government spending EXCEPT…
- Answer: b. Credit card debt forgiveness
- (Air quality programs, public schools, and national parks are common public services; broad credit card debt forgiveness is not a typical universal government benefit.)

Federal Income Tax “Receipt” prompts — example responses you can use:
1. One category I wish fewer taxes were spent on and why:
- Example: Fewer taxes on military spending — because some defense programs are costly with unclear benefits; reducing waste or excess procurement could free funds for domestic priorities.
(You could instead pick corporate subsidies or programs you think are inefficient.)

2. One category I wish more taxes were spent on and why:
- Example: More taxes for education and infrastructure — because investing in schools, job training, and roads/bridges yields long-term economic growth, better outcomes for students, and improved quality of life.
(Other options: healthcare access, climate resilience, public transportation, research.)

4. How to Read a Pay Stub — What is the difference between gross pay and net pay?
- Answer: a. Gross pay is before taxes and deductions are subtracted; Net pay is your take-home pay.
- (Gross = total earnings; net = pay after federal/state taxes, FICA, insurance, retirement contributions, etc.)