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Government Finance - Coggle Diagram
Government Finance
Government Spending
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Government spending is an injection into the circular flow of income and they can adjust this to increase or lower national income
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Taxation
Reasons for taxation
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The provison of healthcare, education and defence
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Types of Taxation
Direct Tax- the individual pays these taxes directly to the tax authorities. E.g. income tax, inheritance tax
Indirect Tax- These taxes are paid through an intermediary to the tax authorities. E.g. VAT and fuel duty. :
Progressive Tax- this is one which takes into account a person's ability to pay. a progressive tax takes a larger percentage of income as income rises. Most direct taxes in the UK are progressive
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