2.  Todd Flanders: Daddy, what do taxes pay for? Ned Flanders: Oh, why, everything! Policemen, trees, sunshine! And lets not forget the folks who just don't feel like working, God bless 'em!

3.   Okay, Marge, if anyone asks: You require 24-hour nursing care, Lisa's a clergyman, Maggie is seven people, and Bart was wounded in Vietnam.

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9.  Tithe barn

10.   Government's view of the economy could be summed up in a few short phrases: If it moves, tax it. If it keeps moving, regulate it. And if it stops moving, subsidise it.

11.   The art of taxation consists in so plucking the goose as to obtain the largest possible number of feathers with the smallest possible amount of hissing.

12.   http://www.youtube.com/watch?v=L2qMFpbiwm w http://www.youtube.com/watch?v=L2qMFpbiwm w  What taxes pay for.

13.  Regressive taxation : takes a larger proportion of poor people’s income. Proportional taxation: the tax collected rises proportionally to income. Progressive taxation: the tax collected rises more than proportionally to income, in other words the burden falls disproportionately on richer people. Types of taxation.

14.   Indirect tax: a tax on spending.

15.   Direct tax – a tax levied directly on the income or profit made by firms and individuals.

16.  Can you think of a….. A progressive, direct tax A regressive, indirect tax A proportional, direct tax A progressive, indirect tax. A regressive, direct tax. A proportional, indirect tax.

17.   Marginal Tax rate: tax on additional income.

18.   http://www.deloitte.ie/tc/Results.aspx http://www.deloitte.ie/tc/Results.aspx

19.   Tax bands or tax thresholds or tax brackets.

20.   http://www.hmrc.gov.uk/rates/it.htm income tax allowances. http://www.hmrc.gov.uk/rates/it.htm

21.  Tax rate2012 to 2013 tax year 2013 to 2014 tax year 2014 to 2015 tax year Basic rate 20%£0 to £34,370£0 to £32,010£0 to £31,865 Higher rate 40%£34,371 to £150,000 £32,011 to £150,000 £31,866 to £150,000 Additional rate 45% (50% for 2012 to 2013) Over £150,000

22.   Increasing the tax bands is effectively the same as a tax ______, or _________ ________ __________.

23.   http://www.bbc.com/news/magazine-26327114 http://www.bbc.com/news/magazine-26327114

24.  Increase taxes or cut spending?

25.   Increasing taxes could backfire – Laffer curve. 

26.   Increasing taxes results in more uncertainty.

27.   Increasing taxes affects incentives.  Increasing indirect taxes has an impact on the CPI.  Increasing indirect tax can incentivise smuggling.  Increasing indirect taxes on price elastic goods actually results in less revenue.  High wages in the public sector draw talent from the private sector – this inhibits growth. So taxes should not be increased – public sector wages should be cut instead.

28.   The poorest are most dependent on government assistance – they will be most severely affected. Cutting expenditure

29.  Who the allowance is forRate (weekly) Eldest or only child£20.30 Additional children£13.40 (per child)

30.   For additional children, the welfare falls due to ___________ of __________.

31.   Cutting training and education for the unemployed can create long term unemployment – the social costs of that are far greater than the current cost of providing the education.

32.   Governments provide merit goods – cutting government expenditure means (in all likelihood) that these will not be provided in the same quantity or quality.

33.   Wages in the public sector should be reasonably generous – public servants such as policemen, firemen, teachers, doctors and nurses provide an invaluable service the their country.

34.   Cutting wages and benefits for public sector workers causes industrial action and strikes

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