Julie lives in the country of Snowland. She has:

• a full-time job earning a gross salary of $42,000 per year;
• $30,000 in a 1 year term deposit that will earn interest at the rate of 4% per year; and
• study expenses of $1,000 per year that are an allowable deduction.

What is her assessable income (to the nearest dollar)? Please do not include dollar signs or commas in your answer.

David lives in the country of Snowland. He has:

• a part-time job with one employer earning a gross salary of $29,000 per year;
• a casual job with a different employer earning a gross salary of $10,000 per year;
• $19,000 in a 1 year term deposit that will earn interest at the rate of 5% per year; and
• work-related expenses of $2,000 per year that are an allowable deduction.

What is his assessable income (to the nearest dollar)? Please do not include dollar signs or commas in your answer.

Each side of Stokes' theorem applied to this situation gives (up to sign):

Which of the following statements about the ‘Why Pay Tax?’ and ‘Sources and Uses of Tax’ sections of the lecture material are TRUE:

1. A common ‘myth’ about taxation is that most of it goes to paying the salaries of politicians. This myth is false because the majority of government expenditure is on the provision of important services to the community and social security.
2. There is some debate about the ‘right level’ of government involvement in the economy. Some argue that the government can solve problems in the economy better than the private sector and so advocate a larger role for government. Others advocate that excessive government involvement tends to create inefficiencies over the long-term.