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Toyin Raphael
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Cards (54)
What is
taxation
?
The system by which a government collects money from citizens and
businesses
to
fund public services.
Define revenue in terms of government finance
The income generated by the
government
from
taxes
, fees, and other sources.
What is equity in taxation?
The principle that taxes should be
fair
and based on a person's
ability to pay.
What is fiscal policy?
Government policies
regarding taxation and spending to influence the
economy.
What does redistribution mean?
The process of transferring income or
wealth
from some
individuals
to others, typically via taxation.
Why do governments collect taxes?
To fund public services,
redistribute wealth
, regulate the economy, provide public goods, and
control inflation.
What public services do taxes fund?
Essential services like
healthcare
, education, infrastructure, and
national defense.
How do taxes contribute to the redistribution of wealth?
Taxes help reduce income inequality by funding
welfare
programs and
social safety
nets.
How do taxes regulate the economy?
Taxes can encourage or discourage activities, such as taxing harmful goods or offering
credits
for green
energy.
What are examples of public goods, and how are they funded?
Public goods, like
roads
and clean water, benefit everyone and are funded through taxes since they aren't provided by
individuals
or businesses.
How can taxes help control inflation?
By
adjusting
tax rates, governments can manage overall demand, influencing
inflation
or deflation.
Why do governments collect taxes?
Revenue
for public services
Redistribution of
wealth
Economic
regulation
Provision of public
goods
Control
inflation
What are the different types of taxes?
Property Tax
Income Tax
Excise Tax
Corporate Tax
Capital Gains Tax
Estate/Inheritance Tax
Sales Tax
Value Added Tax (
VAT
)
What is capital gains tax?
A tax applied to profits from the sale of assets like
stocks
or
real estate.
What is estate/inheritance tax?
A tax levied on the
transfer
of an estate or inheritance after someone
dies.
What is excise tax?
A tax applied to specific goods like
alcohol
,
tobacco
, and fuel.
What is Value-Added Tax (VAT)?
A consumption tax added to a product at
each
stage of production.
What is corporate tax?
A tax charged on a company's
profits.
What is property tax?
A tax imposed on
property ownership
, usually
real estate.
What is a
sales tax
?
A tax charged on
goods
and services at the point of
sale.
What is
income tax
?
A tax levied on individuals' or businesses'
earnings.
How do higher income taxes impact personal spending?
Higher income taxes reduce
disposable income
, potentially lowering overall
consumer spending
How do sales taxes or VAT affect spending?
Sales or VAT
increases
the cost of goods and services, leading people to buy less or shift to
lower-priced
alternatives.
How do tax deductions or credits influence spending behavior?
Tax deductions
/credits encourage behaviors like
buying energy-efficient
appliances or investing in retirement funds.
How do excise taxes impact the purchase of specific products?
Excise
taxes on products like cigarettes or alcohol can deter people from buying them due to the
higher
cost.
What tax factors might influence personal spending habits?
Higher Income
Tax
Sales
or
VAT
Tax Deductions
/
Credits
Excise
Taxes
Why is it important to understand taxation?
To grasp how it
influences economic activities
and the overall
welfare
of society
What are the key principles of taxation?
Equity
Efficiency
Simplicity
Certainty
What does the
equity
principle in taxation mean?
Taxes should be fair and based on the taxpayer's ability to pay.
What does the
efficiency
principle in taxation ensure?
Taxes should not discourage productive activities.
What is the
simplicity
principle in taxation?
Tax rules should be easy for taxpayers to understand.
What does the
certainty
principle in taxation mean?
Taxpayers should clearly understand their tax obligations.
What is the main purpose of taxation for governments?
Taxation is a main source of
revenue
used to provide public goods and
services.
How can taxation influence consumer and business spending?
High taxes on certain goods may
discourage
consumption, while tax breaks on essential services can encourage
spending
in specific sectors.
What role does taxation play in reducing economic inequality?
Taxation helps redistribute income from
wealthier
individuals to lower-income groups, reducing
economic inequality.
How does taxation support disadvantaged groups in society?
Government funds
from taxes are used to provide
social welfare programmes
and services that support disadvantaged groups.
How do high taxes on certain goods affect economic behaviour?
High taxes can
discourage consumption
of those goods.
What is the impact of tax breaks on essential services?
Tax breaks can encourage
spending
in specific sectors, shaping overall
economic
behaviour.
How do governments use taxation as a tool of fiscal policy?
By adjusting tax rates to control
inflation
, employment, and
economic growth.
What is the economic impact of lower taxes?
Lower taxes may
stimulate economic activity.
See all 54 cards
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