Unit 4 chapter 16

• Taxation-a levy imposed by government on individuals and businesses
• Reasons for taxation

  1. Government revenue
  2. Redistribution of wealth. [PAYE SYSTEM.]
  3. Discouraging consumption
• Direct taxes[income]

  Indirect taxes [spend.]
• Tax paid by both houses and businesses

  • Value added tax
  • Motor tax
  • Capital gains tax
  • Pay related to social insurance