Notesale: Turn your study into money

Document Preview

Extracts from the notes are below, to see the PDF you'll receive please use the links above

---

IMPACTS OF TAXATION

Figure 1
Activity 1:
From the figure above, you can see a person with his own money avoiding taxes
...

20 mins will be given for you to think and note down your ideas
...

Activity 2:
In the Mauritius Budget of 2017, the government decided to remove taxes from the following
items
...

Dear Sam,
I know you have been waiting for my letter since long, but unfortunately, since the recent Budget
in US, I am unable to find time for myself
...
Therefore, belonging among the poor families here, I am suffering a lot as I am the
only one to work in my family and a big proportion of my income goes to the government
...
Moreover, since the budget there has been an
inflation in the country
...
I am also unable to save my income since most of the
money is being spent on basic goods
...
I hope that you will like it
...

Regards,
Tom

Therefore as mentioned in the letter, will always have its effects on people
...

We saw the advantages of taxes for some goods and services
...


Impact Of Tax on Distribution of Income

Figure 2

Direct taxes are normally progressive and this helps to redistribute income i
...
Indirect taxes are normally regressive in nature
when they are imposed on basic goods and therefore they accentuate inequalities of income

and wealth
...
However indirect
taxes can be made progressive by imposing them heavily on those goods and services such as
luxury cars, yatcht, hotel services and travel which are consumed mostly by the rich
...

Impact of Taxation on Consumers

Figure 3

Activity 3: Being a consumer of different goods, how does a tax increase on a particular good
affects you?
Both direct and indirect taxes will affect the total and the pattern of consumer spending
...
Consumers will normally reduce the demand for luxury goods but will tend to
maintain the consumption of basic goods such as food
...
When level
of saving is high, then consumption may not be affected in the short term
...

3) Impact of taxes on incentives
...
As you could see in the letter, since

taxes have increased, Tom is so demotivated to work since he has to pay a large proportion of the
money as tax
...
Some people are used to a certain standard of living and when more direct taxes are
imposed, they may want to work harder, for longer hours to maintain the same standard of living
...

Taxes reduce the ability and willingness to save when savings falls, this also leads to a fall in
investment
...

When firms pay more corporation tax, they have less money to re-invest in the business and
therefore investment falls
...

Indirect taxes have an immediate impact on prices
...
Direct taxes are deflationary
...

However, even direct taxes can be inflationary
...
When increase in wages are granted to
workers, then this will lead to an increase in the cost of production and consequently this will
generate cost push/ wage push inflation
...

Consult different people around you and ask them the following questions
...

Record your answers in a tabular form as follows:
Example:
Type of job
Person 1- teacher

Do you pay tax?

How tax affect you?

Yes

Lower income

Why govt impose
tax?
To give pension

This table will help you to understand impact of taxes in real life situations
...
Activity 1 & 2 allows students to work
out their critical and analytical thinking skills
...
This will allow
them to know the real situation in Mauritius and reflect and answer the question
...
Since everybody are
consumers, they are how taxes affect them
...

These activities will normally help both teacher and students
...
These
activities will also help lower ability students to participate in class
...

Evaluation has been done through a small project work
...
Their ideas will be shared and the best have to be recorded in the
table
...
I believe that engaging parents, relatives and friends is a great way to learn
...
And finally a judgement will be made by the teacher after having the work of
students
...

Reflection:
A letter writing have been used to support the teaching of Impact of taxes
...
The
letter will also support the lower ability and mixed ability students in understanding the impact
of taxes since they are reading about someone being put in a real life situation
...
This will
put them in a more realistic situation and they will be allowed to learn how taxes impact their
life
...

Images have also been used to compensate for the needs of visual learners
...
Other
images will attract learners cognitively while learning
...
With the help of the Letter writing, I tried to
bring students in real life situation so that they get engage into the learning process
...
However, with this one experience, I really hope that next
time I look for better ideas when writing a letter
...




---