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Ann Rogers
Economics SL
Mr. Polis
14/10/2010
Taxation: High or Low?

Before any discussion about whether or not taxes should be high or low, one needs to define the term tax, and any subsets thereof. A tax is a sum of money demanded by a government for its support or for specific facilities or services, levied upon incomes, property, sales, etc. (Dictionary.com) There are two main types of taxes, direct and indirect. Direct taxes are taken directly from the income of the person paying taxes. These taxes are usually things like income tax, property tax and any other tax the government decrees should come straight from the income. An indirect tax is a tax that is placed on consumables and every consumer pays it if they buy a product that is taxed. Indirect taxes are called such because instead of being taken directly out of the income, they pass through the hands of producers before reaching the government. An example of this type of tax would be the Value ... Read more »

Category: IB2 Economics | Views: 857 | Added by: arogers | Date: 2010-10-15 | Comments (0)

Davis Drengers
Economics
Mr. Polis
Taxes

The definition of taxes are - required payments of money from individuals, firms and households to government that are used to provide public goods and services for the benefit of the community as a whole. Taxes are the main income for the government.

Reasons for taxes:
Taxes are the main income for the government. Taxes covers government expenditure (We know that government provide country's wealth with many social benefits like child care support, pensions, free medical help for children and many others. Government also pays for road infrastructure, lighting on the streets and so on. So we can see where the majority of taxes goes)
To correct market failure (Governments can intervene in individual markets by changing taxes and this changing demand. Government might add VAT-value added taxes for some products, so then taxation becomes a way of increasing economic efficiency)
To regulate imports a ... Read more »

Category: IB2 Economics | Views: 827 | Added by: ddrengers | Date: 2010-10-15 | Comments (0)

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