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Year 10 - Citizenship

Why should we pay tax?

How does the economy work?

Unit Summary

Pupils learn what the economy is, what taxes are and consider local and central government spending and risk management.

Lesson Summary

You will learn to explain the different types of tax and arguments in support and counter arguments for equal taxation.

Key Notes

  • Taxation is the primary method by which governments generate revenue to fund public services.
  • The UK tax system comprises various forms, including Income Tax, National Insurance, VAT and Corporation Tax.
  • A progressive tax system ensures that individuals with higher incomes contribute a greater proportion.
  • Advocates for equal taxation emphasise simplicity and consistency.
  • Critics highlight its disproportionate impact on lower income groups and the importance of wealth redistribution.

Vocabulary To Learn

  • tax: the charges imposed by the Government on citizens and corporations to finance some of its spending
  • National Insurance (NI): contributions paid from money earned to enable individuals to qualify for certain benefits and the state pension

Common Mistakes To Avoid

  • Everyone pays the same percentage of Income Tax.

3 Quick Questions (With Answers)

1. Explain the lesson in two key points.

Taxation is the primary method by which governments generate revenue to fund public services. The UK tax system comprises various forms, including Income Tax, National Insurance, VAT and Corporation Tax.

2. What does this key word mean in this lesson? 'tax'

the charges imposed by the Government on citizens and corporations to finance some of its spending.

3. Correct this common mistake.

Mistake: Everyone pays the same percentage of Income Tax. Correction: Income Tax is on a progressive scale so the percentage of income tax you pay depends on how much you earn.

More Lessons In This Unit

Browse all guides in the Year 10 Citizenship guide library.