ILO

Candidates should understand how taxation and government expenditure on benefits and services can affect an individual’s income, saving and expenditure during the personal lifecycle.

Starter:

Identify what the key aspects are of what you see in the picture and what is meant by the ILO:

http://www.guardian.co.uk/uk/datablog/2011/mar/23/budget-2011-measures-list#zoomed-picture

government_spending__tax.docx
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Fiscal Policy & Supply Side Policy

The main objectives of the UK tax system

The current government's objectives for the British tax system are broadly as follows:

• The burden of tax: To keep the tax burden as low as possible (the burden of tax for a country can be measured by the % of GDP taken in taxes)
• To improve incentives: The government believes that reducing tax rates on income and business profits helps to sharpen incentives to work and create wealth in the economy as a strategy to enhance long-run growth
• Tax spending rather than income: To shift the balance of taxation away from taxes on income towards taxes on spending – this is because it is thought that taxes on income have a greater effect on work incentives
• Equitable taxes: To ensure taxes are applied equally and fairly to everyone. Equality is not always the same as fairness – see the notes below on the canons of taxation
• Correct for market failure: The government is committed to using the tax system as an instrument of correcting for market failures.

http://tutor2u.net/economics/revision-notes/a2-macro-direct-indirect-taxation.html 

http://www.guardian.co.uk/news/datablog/2012/mar/21/budget-2012-spending-tax-visualised 

managining_your_money_end_of_unit_test.doc
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