National Insurance contributions are increasing.

Sites to Visit for More Information:

1. HM Treasury
2. Inland Revenue
3. Resources for Economists on the Internet

Questions:

1. Define progressive tax, regressive tax, and proportional tax.
2. Is National Insurance a progressive tax, a regressive tax, or a proportional tax?
3. Is National Insurance a fair tax? Why or why not?
4. Is National Insurance paid by the employer or the employee?
5. What will happen to the deadweight loss of the tax as a result of this increase in payments?

Chapters: 15, 16

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