5.1 Government income and expenditure

Inheritence tax
A tax on the transfer of wealth.
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Income tax
It's paid by millions on their wages and salaries. Aswell as on other types of income, including pensions, interest, profits of non-corprate businesses and divedends.
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excise duties
on specific range of goods. (high duties on tobaccoproducts, alcoholic drinks, petrol and diesal)
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vat( value added tax)
on wide range of goods - payable on all consumer durable goods (tvs, mobile phones), many non-durable goods (crisps and chocolate), and services (car repairs and theme parks).
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Advantages/Disadvantages of ...
Guess the term
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Aimed at richer people who can pay, lower classes won't that effected. Therfore is fairer and redistrobutes wealth.
Advantage of INHERITANCE TAX
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People on less money have to pay a higher % of there wage meaning there income reduces, which in turn means they spend less and demand falls. It could also harm incentives if it is too high. Elderly peole who pay it on their pensions would have less
Disadvantage of INCOME TAX
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Larger part of a persons income is spent on shopping, casuong inflation.Dicourages spending, theregfore demand falls.
Disadvantage of VAT
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Unpopular as the person inheriting it was meant to get all of it but instead the government do. Also it is at a time of loss and the inheriter/s would be in morning, and they don't want anymore bad news.
Disadvantage of INHERITANCE TAX
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Discourage people from smoking, meaning less of the health budget is spent on illnesses related to the apecific products. Also this would lead to higher spending in other sectors such as education ect.
Advantage of EXCISE DUTIES
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Higher government revenue, little increase high reward. Helps redistrobute wealth, spent in poorer areas. Progressive tax, the higher your income the higher % you pay.
Advantage of INCOME TAX
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Higher government revenue. It's a choice to buy high vat products
Advantage of VAT
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Discourage people from smoking, meaning less of the health budget is spent on illnesses related to the apecific products. Also this would lead to higher spending in other sectors such as education ect.
Advantage of EXCISE DUTIES
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SCORE
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Other cards in this set

Card 2

Front

It's paid by millions on their wages and salaries. Aswell as on other types of income, including pensions, interest, profits of non-corprate businesses and divedends.

Back

Income tax

Card 3

Front

on specific range of goods. (high duties on tobaccoproducts, alcoholic drinks, petrol and diesal)

Back

Preview of the back of card 3

Card 4

Front

on wide range of goods - payable on all consumer durable goods (tvs, mobile phones), many non-durable goods (crisps and chocolate), and services (car repairs and theme parks).

Back

Preview of the back of card 4

Card 5

Front

Guess the term

Back

Preview of the back of card 5
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