Economics · 5th Year

Active learning ideas

Taxation and Government Expenditure

Taxation and expenditure are the primary tools of fiscal policy. Students explore how the Irish government collects money (Direct taxes like PAYE and Indirect taxes like VAT) and where that money goes (Social Protection, Health, Education). They will analyze the principles of a 'fair' tax system, including Adam Smith's Canons of Taxation: equity, certainty, convenience, and economy.

• NCCA Curriculum Specifications
• NCCA Economics LO 3.3
• NCCA Economics LO 3.4

• 20–45 min
• Pairs → Whole Class
• 3 activities

Activity 01

• Inquiry Circle
• 45 min · Small Groups

Inquiry Circle: Where does the money go?

Using the most recent 'Budget in Brief' from the Department of Finance, groups create infographics showing the breakdown of Irish tax revenue and expenditure, highlighting the largest sectors.

What are the differences between direct and indirect taxes?

• Analyze
• Evaluate
• Create
• Self-Management
• Self-Awareness

Activity 02

• Think-Pair-Share
• 20 min · Pairs

Think-Pair-Share: Progressive vs. Regressive

Students are given examples like Income Tax and VAT. They discuss in pairs which one hits lower-income earners harder and why, then share their thoughts on which is 'fairer.'

How does the government use the national budget to influence the economy?

• Understand
• Apply
• Analyze
• Self-Awareness
• Relationship Skills

Activity 03

• Stations Rotation
• 40 min · Small Groups

Stations Rotation: The Canons of Taxation

Set up four stations, each representing one of Adam Smith's Canons. Students evaluate a specific Irish tax (e.g., Carbon Tax or LPT) against that canon and move to the next, building a full critique.

What are the principles of a fair tax system?

• Remember
• Understand
• Apply
• Analyze
• Self-Management
• Relationship Skills

A few notes on teaching this unit

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Watch Out for These Misconceptions

• A 40% tax rate means you pay 40% of your total income in tax.

  Ireland uses a 'marginal' tax system where you only pay the higher rate on income above a certain threshold. Using 'tax calculator' worksheets in pairs helps students understand how tax bands actually work.

• Indirect taxes (like VAT) are 'fair' because everyone pays the same rate.

  While the rate is the same, the tax takes a larger percentage of a low-income person's total earnings, making it regressive. Peer discussion on 'disposable income' helps clarify this concept.

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Methods used in this brief

• Inquiry Circle
• Think-Pair-Share
• Stations Rotation