This unit introduces the American tax system to elementary school students in grades 3-5. It is presented in three sections, all of which are built around the story of Tex Tax leaving the ranch and going to the city for the first time. Section one centers on taxation at federal, state, and local levels. The student learns to distinguish between private and government property. Students list objects in their classrooms which are government property, work word search puzzles, make posters, locate the United States on a map of the world, list the 50 states, and research the source of county names. In section two the student explores government services and the use of tax money to pay for those services. Activities include a survey of parents' jobs, riddles, questions about functions of the school board and costs of education, and a survey of gasoline taxes. Topics of section three are sales, property, and income taxes. Students record the amount of sales tax their family pays, add taxes from sales receipts, make an income tax poster, design a mural, and calculate taxes. Objectives, a materials list, and reproducible pre- and posttests and activity sheets with keys are included. Approximate class time for the unit is 18 hours. (KC)