THATCHER: TAXATION

HideShow resource information
BELIEF
shouldn't be used to take money from the rich to subsidise the poor: "the problem with socialism is that you eventually run out of money" = lack of incentive to work + dependency
1 of 6
AIMS
promote more investment, growth and gov income through tax cuts
2 of 6
1980 and 1988 BUDGET
top rate of income tax cut from 83% to 60% // basic rate of income tax from 29% to 25%, HIGHER RATE CUT TO 40% = "the giveaway budget"
3 of 6
CUTS SUBSIDISED BY:
discovery of North Sea oil BUT avg tax bill rose by 6% 1979-90 due to increase in indirect taxation -- VAT + 8%-15%
4 of 6
SUCCESS
it was a stimulas which hlped +disposable income = rise in consumer spending and eco growth // Decline in tax avoidance: wealthiest 5% paid as much tax in 1988 as they did in 1978 (40% rate vs 83%) // contributed to Lawson Boom 4/5%+late80s
5 of 6
FAILURES
+regressive taxes e.g. VAT and Nat Insurance Payments -a higher burden on the poor (wealth inequality) // Poll Tax brought down Thatcher
6 of 6

Other cards in this set

Card 2

Front

AIMS

Back

promote more investment, growth and gov income through tax cuts

Card 3

Front

1980 and 1988 BUDGET

Back

Preview of the front of card 3

Card 4

Front

CUTS SUBSIDISED BY:

Back

Preview of the front of card 4

Card 5

Front

SUCCESS

Back

Preview of the front of card 5
View more cards

Comments

No comments have yet been made

Similar History resources:

See all History resources »See all Modern Britain - 19th century onwards resources »