Taxation and Government Expenditure (Edexcel A-Level Business): Flashcards
📚Flashcards
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Practise the cards
10 cards from this deck
Fiscal policy
Fiscal policy
Gov using tax & spending to influence the economy
Direct taxes
Direct taxes
Taxes on income & profits
Indirect taxes
Indirect taxes
Taxes on spending
Corporation tax
Corporation tax
Tax companies pay on their profits
National Insurance
National Insurance
Paid by businesses & individuals on employee earnings
VAT
VAT
Tax on most goods and services
Business cycle
Business cycle
Recurring pattern of economic expansion & contraction
Recession
Recession
GDP falls for two consecutive quarters
Deficit
Deficit
Gap between government spending and tax revenue
Tax evasion
Tax evasion
Illegal methods of avoiding tax payment