Balancing The Budget Flashcards
What is corporation tax?
Paid on profits of businesses
What’s VAT?
Value added tax, most things you buy, amount paid is % of total value of products
What’s national insurance?
Tax paid on income. Pot with other taxes
What’s excise duty?
Charges on items that are not good for you eg alcohol or cigarettes
What’s income tax
As income increases so does tax. % of earnings. Higher incomes = higher percentage of earnings
What is direct tax
Tax on income or profit of individuals or businesses e.g corporation or income tax
What’s indirect tax
A tax such as VAT or excise duty which is charged on the goods and services bought by individuals and businesses
What is austerity?
Government try to reduce budget deficit (amount it needs to balance spending and income). May increase taxes and reduce spending through budget cuts.
