Fiscal policy -tax and 5.0 / 5 based on 1 rating ? EconomicsFiscal policyGCSEOCR Created by: LaurenkjCreated on: 20-11-18 06:42 What is income tax Tax of wages/salaries. Also paid by pensions, interest, rent, product so of non Corporate businesses 1 of 12 WHats corporation tax Tax on companies profits 2 of 12 What’s is inheritance tax A tax on transfer of wealth at time of death 3 of 12 What Is national insurance Paid by employees and employers. Employers- deduction of wages. Employees- tax on employing labour 4 of 12 What is VAT Tax on wide range of goods and services 5 of 12 Excise duties Tax on specific range of goods, e.g tobacco products, alcohol, petrol, diesel 6 of 12 What are the key government objectives Price stability, balancing imports and exports, full employment, low and steady rate of unemployment 7 of 12 purpose of government spending Improve education, healthcare, defence, law and order, social protection 8 of 12 Sources of governments revenue Income tax, National insurance inheritance tax, corporation tax, VAT, excise duties, Insurance premium tax 9 of 12 how can a budget deficit be use to achieve economic objectives? A reduction in taxes, and increase in government spending 10 of 12 how can a budget surplus be use to achieve economic objectives? And increase in taxes and a decrease government spending 11 of 12 How can fiscal policy be used to achieve economic objectives Economic growth/Low employment- budget deficit, increased spending,output,employment. Price stability-budget surplus,reduced spending, so less pressure on price level. A healthier balance of payment-budget surplus, spending,including spending imports 12 of 12
Comments
No comments have yet been made