In just one post, I include resources for the section of the IB Eco syllabus (2005 version) called 3.6 Distribution of Income.

The topic includes the following points:

• Direct taxation
• Indirect taxation
• Progressive taxation
• Proportional taxation
• Regressive taxation
• Transfer payments
Higher level extension topics
• Laffer curve
• Lorenz curve and Gini coefficient

Use the following resources to learn about these sub-topics:

Direct versus Indirect

Compare these two definitions:

http://en.wikipedia.org/wiki/Direct_tax

http://en.wikipedia.org/wiki/Indirect_tax

Can you explain the difference between direct and indirect tax with example taxes?

Progressive, Regressive, and Proportional Tax

ONE Massachusetts (ONEMassPPI) demonstrates the different types of taxes:

Specific Examples of Taxation

This mjmfoodie video includes specific examples of US taxes, then a section on how taxes relates to the government’s budget (which is worth understanding in general terms) and finally a section reviewing the general types of taxes.

Testing Your Understanding of Taxes

A ‘tic tac toe’ game which puts some of the above to the test but you may also need to use your common sense and a bit of guesswork. Play as two people.

Tic Tac Taxes

Sort different types of taxes using reffonomics here.

Transfer Payments

Check wikipedia on the matter.

And there is a brief definition courtesy of BusinessDictionary.com here

This is interesting on the increasing % spent on Transfer payments in the US since 1930:

http://mjperry.blogspot.com/2011/08/chart-of-day-transfer-payments.html

Laffer Curve

by pajholden

by

by ACDCLeadership

Lorenz curve and Gini coefficient

Use this video by pajholden.

And this one by EconInstructor:

Or this very short one: