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December 22nd, 2011

Governments raise the money they spend on public services through taxation.

C2bc Tax

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There are three main types of taxation covered in Chance to be Chancellor 2012, including:

  1. Work taxes include income tax and national insurance – both are deducted directly from earnings and combined they make up around 40% of all tax the Government collects.
  2. Consumer taxes are collected on all goods and services such as VAT and duties on fuel, tobacco and alcohol as well as new proposals such as an ‘unhealthy food’ tax.
  3. Business taxes which are charged on the profits of limited companies and to earnings from investments such as bonds and stocks – they include corporation tax and the bank levy.
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