Tax Cuts

Question 1

what would tax cuts on direct taxation appease?

Answer 1

the wealthy

Question 2

what did Lawson, the Chancellor, continue between 1983 and 1989?

Answer 2

continued the policy of shifting revenue from direct to indirect taxation

Question 3

what did Lawson reduce the top income tax from , and basic rates to?
what was also reduced?

Answer 3

income tax= 60% to 40%
basic rates= from 33% to 25%
capital gains and inheritance taxes also reduced which benefited the wealthy

Question 4

what did the average tax bill rise between 1979 and 1990, and what was this because of?

Answer 4

although income tax fell under Thatcher the average tax bill rose 6% between 1979 and 1990
due to growth of VAT and National Insurance payments

Question 5

what were some of the indirect taxes, and what did this mean for the poor?

Answer 5

petrol, VAT and other duties
meant that a higher proportion of tax was taken from the poor than the rich increasing social deprivation