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Study the text below on direct taxes and find 3
arguments in favour of direct taxes.
Choose one argument from each paragraph.
| Direct taxes are those which the Government take directly from people's salaries. |
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| Examples of direct taxes are Income Tax and National Insurance. |
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| Direct taxes are best because they are relatively easy for the Government to collect. |
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| By contrast, Indirect taxes are taxes on what people spend, rather than on what they earn.VAT (Value Added Tax) is an indirect tax. |
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| It is a very unfair tax because poorer people pay a higher proportion of their income than rich people. |
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| For example, a burger meal may cost £2.99. Approximately 50p of this price is VAT. The rich and the poor person pay the same price and the same amount of tax when buying the meal. |
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| Money raised from direct taxes is spent on services such as hospitals, schools and benefits for the poor and needy. |
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| Direct taxes can be progressive i.e. the more you earn, the more you pay. Most people in the UK pay 22% of their income in Income tax, while richer people pay 40%. |
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| If the Government wants to tackle poverty in Britain, direct taxes are the best and fairest way. |
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| Brian Davies, pension analyst |
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