taxes Flashcards
1
Q
what is a tax?
A
a tax is an amount of money paid to a government
2
Q
what are the two types of taxes?
A
the two types of taxes are direct taxes and indirect taxes
3
Q
what are the features of a good tax?
A
a good tax has the following features:
- equitable
- certain
- convenient
- cheap and easy to collect
- simple
4
Q
what is a direct tax?
A
a direct tax is a tax levied on a person’s income
5
Q
what are examples of direct taxes?
A
examples of direct taxes are:
6
Q
what is an indirect tax?
A
an indirect tax is a tax levied on income, wealth and profit
7
Q
what are examples of indirect taxes?
A
examples of indirect taxes include:
- VAT
- duties
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