UK: INCOME TAX AND VAT



UK: Income Tax and VAT

UK: Income Tax and VAT

Introduction

Evaluate Their Characteristics Income Tax And Vat

The measurement of the administrative cost associated with tax system is a part of theory and policy of taxation and enables us to see a public finance from the angle of positive economy and makes the decision concerning taxation policy at central even local level less difficult to economist. Theoretically the measurement of the administrative costs is not too difficult ? main issue lays at perfect determination of particular type of taxation costs and its proper measurement.

Definitions of Key Economic Terms

Bias

One tool the Fed has to fight inflation is loosening or tightening the reins on short-term interest rates. The Fed maintains a tightening bias if it perceives inflation to be a risk to the overall health of the economy. Similarly, it could maintain a loosening bias if the greater risk is a slowdown in economic growth. If the Fed believes a proper balance is being maintained, its bias is said to be neutral.

Discount rate

The interest rate charged to commercial banks and other depository institutions on loans they receive from their regional Federal Reserve bank's lending facility -- the discount window.

Federal funds target rate

The short-term interest rate that banks charge other banks to borrow money overnight at the Federal Reserve. The actual rate, or effective rate, changes daily and may be above or below the targeted rate. The FOMC sets the rate at its regularly scheduled meetings but may opt to change it between meetings should economic conditions warrant a change.

Federal Open Market Committee, or FOMC

Consists of 12 members: the seven members of the Board of Governors of the Federal Reserve System; the president of the Federal Reserve Bank of New York; and four of the remaining 11 Reserve Bank presidents, who serve one-year terms on a rotating basis. The FOMC holds eight regularly scheduled meetings per year.

Gross domestic product, or GDP

The market value of goods and services produced by labor and property in the United States. It is the primary measure of U.S. production.

Income Tax

Income tax is a tax paid on income. It is paid by employees and people who are self-employed. It may also be payable if you aren't working if, for example, you have an income from a pension or savings. Not all types of income are taxable and it ...