Government Policies Tackling Poverty (AQA A-Level Economics): Flashcards
📚Flashcards
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Practise the cards
10 cards from this deck
Tax & benefits system main purpose
Tax & benefits system main purpose
Redistributes income from richer to poorer households
Original income
Original income
Earnings before govt intervention (employment, pensions, dividends)
Gross income
Gross income
Original income plus cash benefits from government
Disposable income
Disposable income
Income after paying direct taxes (income tax, NI, council tax)
Final income
Final income
Post-tax income plus benefits in kind (NHS, education)
Universal benefits key feature
Universal benefits key feature
Paid to all eligible regardless of income
Means-tested benefits key feature
Means-tested benefits key feature
Depend on person's income and circumstances
Fiscal drag cause
Fiscal drag cause
Tax thresholds fail to keep pace with inflation
Poverty trap effective marginal tax rate
Poverty trap effective marginal tax rate
Can reach 70% or more (sometimes exceeds 100%)
UC free school meals earnings ceiling (2018)
UC free school meals earnings ceiling (2018)
£7,400