New
New
Why should we pay tax?
I can explain the different types of tax and arguments in support and counter arguments for equal taxation.
Lesson 3 of 6
New
New
- Year 10
Why should we pay tax?
I can explain the different types of tax and arguments in support and counter arguments for equal taxation.
Lesson details
Key learning points
- 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.
Keywords
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
Common misconception
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.
You could develop the final task and include a deliberative discusson or debate about whether a progressive tax system is more fair than a flat tax system or not.
Teacher tip
Equipment
Content guidance
- Depiction or discussion of discriminatory behaviour
- Depiction or discussion of sensitive content
Supervision
Adult supervision recommended
Licence
This content is © Oak National Academy Limited (2025), licensed on Open Government Licence version 3.0 except where otherwise stated. See Oak's terms & conditions (Collection 2).
Lesson video
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Prior knowledge starter quiz
6 Questions
Q1.Match the types of tax to their descriptions.
Match the types of tax to their descriptions.
Q2.Each year, the Government sets out its financial plans in a document called the ...
Each year, the Government sets out its financial plans in a document called the ...
Q3.The Government raises money through six main areas, including taxation, borrowing and debt, natural resources, national assets, fines and fees and ...
The Government raises money through six main areas, including taxation, borrowing and debt, natural resources, national assets, fines and fees and ...
Q4.Which of the following services is primarily funded by the UK Government?
Which of the following services is primarily funded by the UK Government?
supermarkets
airlines
mobile phone networks
Q5.Match each financial term to its correct definition.
Match each financial term to its correct definition.
Q6.Why does the Government issue bonds?
Why does the Government issue bonds?
to collect donations from the public
to allow private companies to take over public services
to encourage people to save money
Assessment exit quiz
6 Questions
Q1.Match the terms to their correct definitions.
Match the terms to their correct definitions.
Q2. tax systems result in people with higher incomes paying a greater proportion of their income in tax.
tax systems result in people with higher incomes paying a greater proportion of their income in tax.
Q3.What is the primary purpose of taxation?
What is the primary purpose of taxation?
to reduce the amount of money in circulation
to increase the profits of private companies
to discourage consumer spending
Q4.How much money can most people in the UK earn before they start to pay Income Tax?
How much money can most people in the UK earn before they start to pay Income Tax?
£10,250
£15,720
£20,715
Q5.What is one argument in favour of a flat tax system?
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.
Q6.Why does the Government fund public services such as education and healthcare through taxation?
Why does the Government fund public services such as education and healthcare through taxation?
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
