MYTUTOR SUBJECT ANSWERS

455 views

How can changes to taxes cause a reduction in the public deficit?

Increasing the level of direct taxes to reduce the fiscal deficit would lead to a disincentive to work amongst the rich as they will be less willing to work overtime and more inclined to reduce working hours and people on benefits would not find an incentive to work. It could mean that the tax revenues for the government would fall at a very high tax rate if we are initially on the elastic side of the laffer curve. (DIAGRAM). It would also lead to more tax avoidance and tax evasion amongst the rich which could also lead to tax exiles. Therefore tax revenue will fall in the long run causing a larger fiscal deficit. However it will improve the distribution of income in the UK. 

ZoeTemiloluwa C. GCSE Religious Studies tutor, GCSE Economics tutor, ...

2 years ago

Answered by ZoeTemiloluwa, a GCSE Economics tutor with MyTutor


Still stuck? Get one-to-one help from a personally interviewed subject specialist

68 SUBJECT SPECIALISTS

£30 /hr

James T.

Degree: Economics & Management (Bachelors) - Bristol University

Subjects offered:Economics, Maths

Economics
Maths

“I am currently studying Economics & Management at the University of Bristol, and love working with students of all ages, specialising in Maths and Economics at both A-Level and GCSE. I have been teaching drums and coaching tennis for ...”

£18 /hr

Matthew M.

Degree: MSci Computer Science (Masters) - Lancaster University

Subjects offered:Economics, Maths+ 3 more

Economics
Maths
Computing
Business Studies
-Personal Statements-

“About Matt: I'm Matt and I am a computer science student at Lancaster University. I have often been described as being friendly and hardworking by my friends, family and work colleagues. Prior to University I worked in the industry as...”

£36 /hr

Alec E.

Degree: Economics with Finance (Bachelors) - Edinburgh University

Subjects offered:Economics, Maths+ 1 more

Economics
Maths
-Personal Statements-

“Hello! I am an experienced tutor (100+ hours) currently earning my MA (Hons) in Economics at the University of Edinburgh. ”

MyTutor guarantee

About the author

ZoeTemiloluwa C.

Currently unavailable: for regular students

Degree: Law with Social Sciences (Bachelors) - Warwick University

Subjects offered:Economics, Religious Studies+ 1 more

Economics
Religious Studies
Government and Politics

“ABOUT ME Hello! My name is Temi and I am a first year Law with Social Sciences student  at the University of Warwick. I have always had a passion for the Humanities and Social Science and took A-Levels in Government and Politics, Econ...”

MyTutor guarantee

You may also like...

Posts by ZoeTemiloluwa

How can changes to taxes cause a reduction in the public deficit?

What are the factors that could affect the exchange rate?

What is the Marshall Lerner Condition?

Other GCSE Economics questions

Explain two benefits to the government that falling unemployment provides.

What is inflation?

How should put in my essays for 25 mark questions?

Evaluate the view that perfect competition is a more efficient market structure than monopoly.

View GCSE Economics tutors

We use cookies to improve your site experience. By continuing to use this website, we'll assume that you're OK with this. Dismiss

mtw:mercury1:status:ok