Why should we pay tax? | Citizenship | Quizalize & Oak National Academy

Starter quiz

Match the types of tax to their descriptions.

Income Tax

⇔

a tax paid by individuals based on their earnings ✓

Council Tax

⇔

a local tax paid by homeowners and renters for public services ✓

Corporation Tax

⇔

a tax paid by businesses on their profits ✓

Excise Duty

⇔

a tax on goods such as alcohol, tobacco and fuel ✓
Each year, the Government sets out its financial plans in a document called the ...

'Budget' ✓
The Government raises money through six main areas, including taxation, borrowing and debt, natural resources, national assets, fines and fees and ...

'investments' ✓
Which of the following services is primarily funded by the UK Government?

supermarkets

healthcare ✓

airlines

mobile phone networks
Match each financial term to its correct definition.

surplus

⇔

when government income is higher than spending ✓

deficit

⇔

when government spending is higher than income ✓

revenue

⇔

the total income a government collects, mainly from taxes ✓
Why does the Government issue bonds?

to collect donations from the public

to allow private companies to take over public services

to borrow money that must be repaid with interest ✓

to encourage people to save money

Match the terms to their correct definitions.

Personal Allowance

⇔

the amount you can earn tax-free each year ✓

National Insurance (NI)

⇔

money taken from earnings to qualify for benefits and pensions ✓

Value Added Tax (VAT)

⇔

a tax added to goods and services at the point of purchase ✓
______ tax systems result in people with higher incomes paying a greater proportion of their income in tax.

'progressive' ✓
What is the primary purpose of taxation?

to reduce the amount of money in circulation

to generate revenue ✓

to increase the profits of private companies

to discourage consumer spending
How much money can most people in the UK earn before they start to pay Income Tax?

£10,250

£12,570 ✓

£15,720

£20,715
What is one argument in favour of a flat tax system?

It allows lower earners to pay less tax.

It prevents businesses from making profits.

It ensures that wealthy individuals pay more.

It ensures simplicity and consistency. ✓
Why does the Government fund public services such as education and healthcare through taxation?

to ensure everyone has access, regardless of income ✓

to increase the profits of private companies

to encourage people to pay for private services instead

to provide services only for those who contribute the most tax

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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.

Everyone pays the same percentage of Income Tax.

Income Tax is on a progressive scale so the percentage of income tax you pay depends on how much you earn.

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