SCENARIO:
You are Peggy Sue Gambo, the owner of PSG Tax Services Inc. For more than 20 years, you have served individuals and small businesses in your Midwest small town, Elmhurst. In Elmhurst, everyone knows everyone, so you know the importance of word-of-mouth business growth (and social growth).
So when your assistant tells you that Jackson and Kara Erb are your 11 a.m. appointment, you're very excited that you'll be doing a favor for the son of an old high school friend who has recently become single.
ROLE:
Happy to have the excuse to call Eric Erb to get the backstory on Jackson's visit later this morning, you learn that Jackson has just gotten married. Eric says he told Jackson that Peggy Sue is the best accountant in all of Elmhurst, and that she'd be the perfect one to help with the tax questions he and Kara have as they start their new life together.
So you (Peggy Sue) will be working with the newlyweds on their starting-out tax needs.
As you will learn, they need a lot of help.
PLAYERS:
Peggy Sue: Come in! Please have a seat!
Jackson: Hi, Ms. Gambo. My dad said that we should come and talk to you.
Peggy Sue: It’s so nice to meet you! And I hear you got married last year. This must be your new wife!
Kara: Hi, Ms. Gambo. It’s so nice to meet you.
Peggy Sue: The pleasure is mine! So what can I help you with?
Jackson: I’m sure Dad told you about the job I started last year at the plant. Well, he said that it’s time for me to file my taxes and that I might owe the government money.
Kara: (interrupting) Well now, Jackson has taxes taken out of his paycheck, so I don’t understand why we would have to pay more. We paid taxes to register the truck, too, and a lot of taxes at the grocery store. What else do we have to pay?
Peggy Sue: (growing concerned) Yes, taxes aren’t just what you pay when you buy things or when you get paid from your employer.
Jackson: Uh-oh.
Kara: I told you—we shouldn’t have ditched that Consumer Ed class when we were seniors.
Peggy Sue: Uh . . . getting us back on track,there are different types of taxes and they’re paid in different ways. Plus, you’re required by law to pay taxes.
DELIVERABLES:
Given the scenario, your role, and the information provided by the key players involved, it is time for you to make a decision.
If you are finished reviewing this scenario, close this window and return to this Week's You Decide section in eCollege to complete the activity for this scenario.
You can return and review this scenario again at any time.
Activity
Prepare a 2–3-page paper (approximately 350 words per page) explaining the following to the Erbs.
1. The different types of local, state, and federal taxes they pay, and why they are each important?
2. The basic standards for taxes?
3. Why they should pay taxes?