Economics GCSE OCR- How does the UK government raise and spend it's money?
- Created by: Simeon Lyons
- Created on: 22-04-12 20:02
Government income and expenditure
Main areas of spending:
Social protection
Health
Education
Defense
Law and order (police, courts and prisons)
Debt interest- loans that need paying off.
Main areas of income
Direct taxes
Income tax
National insurance
Corporation tax
Inheritance tax
Indirect taxes
Value added tax (VAT)
Excise duties
Indirect taxes can be avoided. Direct taxes hurt you directly.
Direct taxes- normally more money, can be disincentives.
Indirect taxes- you get the choice.
Redistribution of income.
Distribution of income- how incomes are shared out among the people of the country.
Redistribution of income- a policy to reduce the inequalities of income so that incomes are distributed more evenly.
Inequalities of income- incomes are distributed evenly so that some people have a much higher income than others.
Transfer payments-…
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