Qualification > Commerce
ALL ECONOMICS DISCUSSION, PAPERS HELP HERE!!
BlackBunny103:
--- Quote from: Shooting Star on May 08, 2010, 06:06:16 am ---I dont uderstand regressive tax. I mean isnt is somehow unfair? cz people with lower income have a higher percentage of tax taken from their income, while people with higher income have lower percentage of tax taken from their income. This causes the people on lower income to have a smaller disposable income, which reduces their purchasing power. My point is, what is the government trying to achieve by this tax?
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According to what I know, a regressive tax is a tax unrelated to income that bears hardest on those least able to pay.
The result is that the average rate of tax is greatest for those on lower incomes. Regressive taxes rarely are designed specifically to have this effect – but they have such a result because of the spending patterns and choices of the people affected by such taxes which is reflected in the percentage of their incomes allocated to specific goods and services.
Examples to use in an exam answer might include:
• The tax on national lottery tickets
• Excise duties on smoking and alcohol – betting and gaming duties
$H00t!N& $t@r:
ohk it makes sense now . but you said that regressive tax is unrelated to income. i understand that its not tax on your income, that is income tax but when u pay a V.A.T you pay that from your disposable income right?
BlackBunny103:
--- Quote from: Shooting Star on May 08, 2010, 06:59:16 am ---But when u pay a V.A.T you pay that from your disposable income right?
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Glad it helps you ;) Yup you pay VAT from your disposable income.
$H00t!N& $t@r:
--- Quote from: BlackBunny103 on May 08, 2010, 07:46:57 am ---Glad it helps you ;) Yup you pay VAT from your disposable income.
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Thanks again ;D
Choc.Kits:
--- Quote from: BlackBunny103 on May 08, 2010, 06:04:27 am ---Yea I'm doing Economics exams this year as well. Good luck to both of us ;)
I'm a bit worried about paper 3 though, any suggestions?
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Yup yup, good luck to the both of us :)
Dont fret over paper 3. I feel that paper 2 is much more challenging than paper 3. Paper 3's much shorter, and the questions are relatively specific so you know what you are expected to write. But then again, Paper 2 is also easy cause you can chose which questions you wanna write. haha.
Conclusion: no worries at all! haha :D
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