Direct tax or indirect tax - the right balance?

[johnfm]

The piechart below suggests that in 2008 we paid £310 bn in direct taxes (income tax, NI and corporation tax.)

The other circa £225 billion is indirect taxation.

I would like to see an analysis of the 'money-go-round' in the event that direct taxation was significantly lower and consumption tax was increased to compensate.


I would think the increase in perceived spending power created by increased disposable income would be offset by the increase in pricing.

Are there any online modelling tools ( apart form SimCity!) that may show effects of various taxation and spending concepts?






how they wasted it:

[anonymous-user]

http://tutor2u.net/economics/revision-notes/a2-mac...

[johnfm]

thanks fbrs