Lesson 50-Taxation Flashcards
1
Q
What are direct taxes?
A
These are taxes usually on income, wealth and profit
2
Q
What do direct taxes include?
A
These include, income tax, inheritance tax, NI contributions, capital gains tax and coorporation tax
3
Q
What are indirect taxes usually taxes on?
A
These are usually taxes on spending
4
Q
Give two examples of an indirect tax
A
.Excise duties on fuel, cigarettes and alcohol
.VAT on many different goods
5
Q
What are progressive taxes?
A
This where as people earn more, the rate marginal rate of tax rises
6
Q
What are regressive taxes?
A
The rate of tax paid falls as income rises
7
Q
What relationship does the laffer curve show?
A
The relationship between economic activity and the rate of taxation, this suggests there is a optimum tax rate which maximises total revenue
8
Q
A
