Author Question: The Community Charge was a poll tax to fund local government in the United Kingdom, instituted in ... (Read 59 times)

Brittanyd9008 · **on:** Jun 29, 2018

The Community Charge was a poll tax to fund local government in the United Kingdom, instituted in 1989 by the government of Margaret Thatcher. It replaced the rates that were based on the national rental value of a house.

It was a fixed tax per adult resident. Is this tax a proportional, progressive or regressive tax? Explain your answer.

Question 2

Refer to Figure 2-5. If the economy is currently producing at point W, what is the opportunity cost of moving to point X?

A) 19 million tons of steel B) 5 million tons of paper
C) 9 million tons of paper D) 3 million tons of steel

Tonyam972 · **Reply #1 on:** Jun 29, 2018

Answer to Question 1

This is essentially a regressive tax since the amount of tax is independent of one's income. Therefore, as income rises the percent of your income paid actually declines.

Answer to Question 2

B