Tax
- Created by: ZaraZaman
- Created on: 20-02-15 15:27
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- Taxes
- What makes a good tax?
- Fairness
- Should not affect sensible economic behaviour
- Stability
- Cheap to collect
- Simple to calculate
- Convenient to pay
- Types of Taxes
- Excise duty
- Taxes on specific goods
- EG cigarettes
- Taxes on specific goods
- Corporation
- Paid by firms based on profit levels
- Capital gains
- Paid on the increase of value of your assets
- Inheritance
- Tax on deceased person's assets
- Direct
- Based on income or earnings
- EG income tax
- Based on income or earnings
- Regressive
- Tax rate decreases as income increases
- Proportional
- Tax rate remains constant
- Progressive
- Tax rate increases with income
- Indirect
- Added to the price of a good or service
- Eg VAT
- Added to the price of a good or service
- Excise duty
- What makes a good tax?
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