Fiscal policy involves manipulating public spending, taxation, and borrowing to achieve macroeconomic objectives. Taxation objectives include funding government spending, managing the economy through tax rates, redistributing income, and correcting market failures. Direct taxes like income tax are paid directly to the government and are often progressive, while indirect taxes like VAT can be passed on to consumers and are typically regressive. The document discusses arguments for and against different types of taxes.
A fantastic PPT on a very important and scoring topic. A quick and easy explanation of the chapter Government Budget & The Economy. It has got all the material information required to enhance one's knowledge about the topic. Excellent and interesting facts. HAPPY LEARNING !!
This presentation discuss how trickle down economics. There is allot of misunderstanding on how income flows from Government treasury to social programs.
The presentation will discuss pressure facing the middle class including economic growth.
A fantastic PPT on a very important and scoring topic. A quick and easy explanation of the chapter Government Budget & The Economy. It has got all the material information required to enhance one's knowledge about the topic. Excellent and interesting facts. HAPPY LEARNING !!
This presentation discuss how trickle down economics. There is allot of misunderstanding on how income flows from Government treasury to social programs.
The presentation will discuss pressure facing the middle class including economic growth.
This video of a live revision webinar for AS macro evaluates supply-side policies designed to improve macroeconomic performance and address structural policy problems. The main focus is on the UK economy.
On Friday 21 May 2021, the ESRI hosted the webinar 'Options for raising tax revenue in Ireland'
ESRI researchers, Theano Kakoulidou and Barra Roantree, presented key findings from the report of the same name. Research found that increases in taxes on income, consumption and property may be needed to fund future public spending.
Read the publication here: https://www.esri.ie/publications/options-for-raising-tax-revenue-in-ireland
CVS Surveyors- For the retail sector, the recently confirmed transitional relief scheme won’t actually provide any net relief, who so desperately need it. Mark Rigby, CEO of business rent and rates specialists CVS Surveyors, said;“The Treasury’s golden goose is getting even fatter following a £1bn windfall from last year’s business rates yield and what’s more, this year the yield is projected to be £0.6bn over budget.
Paul Johnson - 'Indicaciones para una reforma tributaria: lecciones del Infor...Fundación Ramón Areces
El 25 de septiembre de 2014, el profesor Paul Johnson, director del prestigioso Institute for Fiscal Studies de Reino Unido, pronunció una conferencia magistral en la Fundación Ramón Areces con el lema 'Indicaciones para una reforma tributaria: lecciones del Informe Mirrlees'. Su intervención sirvió para presentar el libro editado por la Fundación 'Opciones para una reforma del sistema tributario español'. En él, un comité de 13 expertos españoles han analizado cómo podrían introducirse las conclusiones de este trabajo en nuestro país.
The complete guide to understanding VAT returns for small businesses in the UK. Our presentation includes: VAT principles and how VAT is collected, the different types of VAT rates and categories they apply to, how VAT returns are calculated for small businesses selling exempt products, VAT registration rules and advice, the three VAT schemes explained, useful real-world examples and much more.
2. Fiscal Policy
• Manipulation of
– Public Spending
– Taxation
– Borrowing
• To achieve macroeconomic objectives
• Fiscal Policy is going to have impacts on
Individuals and Business
Aquinas College Economics Department
3. Taxation Objectives
• Funding Government Spending
– As always government need to fund their
spending, taxation can also curb inflationary
pressures
• Management of the Economy
– Rate of tax can influence inflation,
unemployment, growth and the balance of
payments
Aquinas College Economics Department
4. Taxation Objectives
• Income redistribution
– Taxes, through higher and lower rates and
the welfare system can distribute income
more evenly
• Correct Market Failure
– Taxes can discourage consumption of demerit
goods such as alcohol or tobacco, or reduce
negative externalities on some goods
Aquinas College Economics Department
5. Direct Taxes
• These are paid by the individual to HMRC
• Are often progressive taxes
– Income Tax
– Corporation Tax
– Inheritance Tax
– Capital Gains Tax
• They are direct as the liability can’t be
passed onto anyone else.
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6. Direct Tax Levels in the UK
Tax Rate (2013-2014)
Income Tax
Basic Rate (£0-£32,010) 20%
Higher Rate (£32,011 - 40%
£150,00)
Highest Rate 45%
(£150,001+)
Inheritance Tax 40% over £325,000
Capital Gains Tax Between 18%-28%
Corporation Tax 21%
Source HMRC
Aquinas College Economics Department
7. Indirect Taxes
• Tax Liability can be shifted depending on
the price elasticity for that product
• These often include
– VAT (Value Added tax)
– Fuel Duty
– Alcohol Duty
– Tobacco Duty
• They are regressive
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8. Indirect Tax Levels in the UK
Tax Rate (2013-2014)
VAT
Standard Rate 20%
Reduced Rate 5%
Alcohol Duty* 10p per Pint
Tobacco Duty† 16.5% (Plus other Conditions)
Oil Duty‡ £0.58 per Litre
Source HMRC
*Alcohol Duty varies depending on Alcohol and type – Amount shown is for General
Beer
†Tobacco Duty varies for different types – Amount shown is for Cigarettes
‡ Price for Unleaded Petrol only
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9. Arguments with Indirect Tax
Arguments in Favour Arguments Against
Influence consumer spending Inflationary Effects
patterns
Correcting Externalities Lack of Knowledge
Inventive effects (less incentive not Regressive Nature goes against
to work) distributional policies for income
Flexibility – doesn’t require a budget Crime – high rates may encourage an
to change it, but often does increase in crime
Choice – consumers don’t have to buy
the product in question
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10. Hypothecation of Tax
• Taxes are raised for a specific purpose
• E.g. Government in the last 10 years
announced that tobacco duty would fund
NHS
• Quite often known as the Benefit
Principle
– The argument that taxes should be linked to
the benefits received by tax payers
Aquinas College Economics Department
11. Progressive | Regressive | Proportional
• Progressive:
– Proportion of tax increases as incomes
increase
• Regressive
– Proportion of tax falls as income increases
• Proportional
– The proportion of tax to income stays the
same as incomes increase
Aquinas College Economics Department