different types of taxation systems

Question 1

average rate of tax

Answer 1

tax paid as proportion of income earns (tax paid/income x 100)

Question 2

different types of tax systems

Answer 2

-progressive tax: as income rises, average rate of tax rises
-proportional tax: as income rises, average rate of tax stays the same (20% for all)
-regressive tax: as income rises, average rate of tax falls

Question 3

-taxable income equation
-income tax paid
-average rate of tax
-marginal rate of tax

Answer 3

-income - tax free allowance
-work back through bands
-income tax paid/income x 100
-change in income tax paid/ change in income