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Various opinion polls have indicated that people in Ireland favour an improvement in state services rather than a reduction in taxation rates - Leaving Cert Economics - Question c - 2017
Question c
Various opinion polls have indicated that people in Ireland favour an improvement in state services rather than a reduction in taxation rates. (i) Identify two stat... show full transcript
Worked Solution & Example Answer:Various opinion polls have indicated that people in Ireland favour an improvement in state services rather than a reduction in taxation rates - Leaving Cert Economics - Question c - 2017
Step 1
Identify two state services which could be improved and explain your answer in each case.
Answer
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Health Services: The health sector can be significantly improved by employing more nurses and doctors. This would help reduce waiting times for patients, ensuring that medical assistance is provided promptly. With an increased number of healthcare professionals, the overall quality of health services would improve, making healthcare more accessible and efficient.
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Education Services: Enhancing education by reducing class sizes in primary and secondary schools can lead to better individual attention for students, which is crucial for their development. Moreover, increasing funding for third-level institutions will help improve the quality of courses, ultimately benefitting students and preparing them for the workforce.
Step 2
Would you favour a reduction in taxation rates, e.g. income tax rates in Ireland, VAT rates? Outline two reasons for your answer.
Answer
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Increased Disposable Income: A reduction in taxation rates would lead to increased disposable income among citizens. Lower taxes mean that individuals retain more of their earnings, thereby enhancing their standard of living and allowing them to spend more on essential goods and services.
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Stimulus for Economic Growth: Lowering tax rates could encourage consumption and investment. With more disposable income, people are likely to spend more, which can stimulate economic growth, support local businesses, and ultimately create more jobs.