Average and Marginal Tax Rates Flashcards
1
Q
Average income tax =
A
total income tax paid/total income x100
2
Q
What are marginal tax rates?
A
Rate paid on last £1 of income
3
Q
What are the income tax bands?
A
0 - 12,500
12,500 - 50,000
50,000 - 150,000
150,000+
4
Q
What is the tax per band?
A
0%
20%
40%
45%
5
Q
What are the main sources of government tax revenue?
A
Income Tax
VAT
National Insurance
Exercise Duties
Corporation Tax
6
Q
What is the proportion of government tax revenue?
A
Income Tax - 30%
VAT - 20%
National Insurance = 20%
Exercise Duties - 10%
Corporation Tax - 8%
7
Q
What are the main sources of government expenditure?
A
Social Support
NHS
Education
Debt Interest
Police
Defence
8
Q
What is the proportion of government expenditure
A
Social Support - 30%
NHS = 20%
Education
Debt Interest - 15%
Police - 5%
Defence - 5%
