Taxation OCR AS Economics: Markets in Action


	Taxation OCR AS Economics: Markets in Action
	Advantages Pays for public goods. Equals out income distribution. Encourages and discourages consumption of merit and demerit goods.	Disadvantages Doesn't work with inelastic goods. Firms lose money and can be unmotivated. Difficult to measure the social benefits of taxes. Discourages businesses to expand. Can be seen to penalise hard work. Increases government control.
	Evaluation

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