Taxation

Question 1

National Insurance - Drawback (4)

Answer 1

1. Increase National Insurance
2. Increased Tax therefore lower disposable income
3. Fall in demand for luxury / normal goods
4. Link to Yellow Sheet

Question 2

National Insurance - However (5)

Answer 2

1. Increase national insurance
2. Increased tax for more fiscal spending
3. Increased government spending on education increasing subsidies to universities
4. Inc number of people attending university to improve skills
5. Improved skills can improve productivity > lower unit costs