government role + revenue

Question 1

what is the governments role (3)

Answer 1

• ensure citizens well-being
• protect resources and environment
• regulate the economy (permits, quotas, licenses, labour laws, create employment, control inflation)

Question 2

how does the government control inflation

Answer 2

increasing interest rate so that people using credit decreases therefore less people spending=less inflation

Question 3

what is government revenue

Answer 3

government funding (money coming in)

Question 4

what are some sources of revenue

Answer 4

• taxes in Quebec (income tax, sales (G.S.T & Q.S.T) & specific (alcohol, gas, tobacco) taxes, municipal &school)
• fees, licenses

Question 5

what is GST and QST and how much are they worth

Answer 5

GST: goods and services tax (5%)
QST: Quebec sales tax (10%)

Question 6

what is the goal of government revenue

Answer 6

help reduce economic inequality by providing essential social programs (education, medicare, parental leave, student financial aid, etc.)

Question 7

what are sales taxes applied to

Answer 7

ALL goods and services, except exemptions

Question 8

what’s an exemption

Answer 8

am exception to sales tax

Question 9

what are examples of exemptions

Answer 9

basic necessities:
- milk, bread, vegetables
- prescribed drugs
- medical services, healthcare
- residential rents
- public transport
- child care, education
- bank services, legal aid services

Question 10

what do exemption do to sales tax

Answer 10

make them less regressive (taking a proportionally greater amount from those with less income)

Question 11

what are examples of services possible due to revenue

Answer 11

• libraries, parks, playgrounds
• roads & bridges
• arenas, swimming pools
• schools (education), hospitals (healthcare)
• emergency services
• garbage, recycling, compost collection
  -national defence