Explain the reasons why governments impose taxes and consider whether an increase in income tax is fairer than an increase in sales taxes.
Exam No:9708_w23_qp_21 Year:2023 Question No:4(a)
Answer:

Knowledge points:
3.3.4.1 minimum wage
3.3.4.2 transfer payments
3.3.4.3 progressive income taxes, inheritance and capital taxes
3.4.4 state provision of essential goods and services
5.2.4.1 types of taxes: direct/indirect, progressive/regressive/proportional
5.2.4.2 rates of tax: marginal and average rates of taxation (mrt, art)
5.2.4.3 reasons for taxation
Solution:
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