Micro 12 Flashcards
1
Q
What are the 4 types of tax ?
A
direct , indirect , ad valorem , specific , progressive , regressive , proportional
2
Q
What does direct tax mean ?
A
impacts the households , e.g income tax
3
Q
What does indirect tax mean ?
A
only impacts households if they buy the good or service e.g VAT
4
Q
What does specific tax mean ?
A
£ or pence value tax added on , e.g fuel tax
5
Q
What does Ad valorem tax mean ?
A
% value tax added on , e.g VAT
6
Q
What does progressive tax mean ?
A
the more you earn the more you pay , e.g income tax
7
Q
What does regressive tax mean ?
A
the less you earn the higher proportion your income being spent on the tax ,e.g VAT, sugar tax
8
Q
What does proportional tax mean ?
A
pay the same amount of tax , e.g council tax
