Tech Startup Growth Hacking 101 - Basics on Growth Marketing
Pe5e chapter 10 v1.0
1.
2. • List alternative sources of government revenue
• Define a tax and describe the structure of tax rates
• Distinguish between general and selective
taxes, specific and ad valorem taxes, as well as direct
and indirect taxes
• List the properties of a good tax
• Explain what is meant by an equitable tax
• Distinguish between the statutory and economic
burden of a tax
• Analyse the shifting of a tax and its impact on tax
incidence using both a partial and a general
equilibrium framework.
3. • Tax
• User charges
– Prices charged for the delivery of certain public goods and
services
– Examples: Toll roads, public swimming pools
• Administrative fees
– Definition of service/benefit is broad & imprecise
– Examples: TV licences, parking tickets
• Borrowing
• ‘Inflation taxation’.
4. Type of Tax % Contribution of total tax
revenue for 2010/11
Income and profits 59.1%
Payroll and workforce 1.3%
Property 1.4%
Goods and services 37.8%
International trade and transactions 4.1%
Stamp duties and fees 0.001%
6. • Broad-based
• Taxes the entire tax base
• No exemptions
• Example: Value Added Tax
• Narrow based
• Imposed on one/few
products or only income
• Whole tax base is not taxed
• Example: cigarettes
7. • Specific/unit tax
– Levied per unit
– Example: Excise duties on sparkling wine
• Ad valorem
– Levied as a rate
– Typically imposed on ‘luxuries’ such as golf balls
• Direct
– Examples: personal income and company tax
• Indirect
– Examples: excise and VAT.
8. • Generate sufficient revenue to finance budgeted
government expenditure
• Equitable
• Economically efficient
• Administratively efficient
• Flexible.
