Unit 7 state tax system in ukraine text 1 taxation

Exercise 1.1 Study the vocabulary:

1) taxation	1) оподаткування
2) to raise money	2) залучати кошти
3) to require money	3) потребувати кошти
4) tax revenues	4) податкові надходження
5) the amount of taxes	5) сума (обсяг) податків
6) to impose tax	6) обкладати податком
7) to distribute	7) розподіляти
8) the burden of taxes	8) тягар податків
9) the source of revenues	9) джерело доходу
10) the remainder of revenues	10) залишок доходу
11) to charge fees for services	11) нараховувати плату за послуги
12) the gross domestic product	12) валовий внутрішній продукт
13) to raise taxes	13) підвищувати податки
14) to achieve social and economic objectives	14) досягти соціальних та економічних цілей

Exercise 1.2 Read and translate the text:

Taxation is a system of raising money to finance government. All governments require payments of money – taxes – form people. Governments use tax revenues to pay soldiers and police, to build dams and roads, to operate schools and hospitals, to provide food to the poor and medical care to the elderly and for hundreds of other purposes. Without taxes to fund its activities, government could not exist.

Throughout history, people have debated the amount and kinds of taxes that a government should impose, as well as how it should distribute the burden of those taxes across society. Unpopular taxes have caused public protests, riots, and even revolutions. In political campaigns, candidates’ views on taxation may partly determine their popularity with voters.

Taxation is the most important source of revenues for modern governments, typically accounting for 90 per cent or more of their income. The remainder of government revenue comes from borrowing and from charging fees for services. Countries differ considerably in the amount of taxes they collect. In the United States, about 28 per cent of the gross domestic product, a measure of economic output goes for tax payments. In Canada about 36 per cent of the country’s gross domestic product goes for taxes. In France the figure is 44 per cent, and in Sweden it is 51 per cent.

In addition to using taxation to raise money, governments may raise or lower taxes to achieve social and economic objectives, or to achieve political popularity with certain groups. Taxation can redistribute a society’s wealth by imposing a heavier tax burden on one group in order to fund services for another. Also, some economists consider taxation an important tool for maintaining the stability of a country’s economy.

Exercise 1.3 Math the equivalents:

1. The source of revenue	a) підвищувати податки
2. Tax revenues	b) валовий внутрішній продукт
3. Borrowing	c) податкові надходження
4. A measure of economic output	d) значно відрізнятись
5. An important tool for maintaining the stability	e) джерело доходів
6. To differ considerably	f) мірило економічного випуску
7. To achieve political popularity	g) перерозподіляти багатство
8. To raise taxes	h) важливий інструмент для підтримання стабільності
9. The gross domestic product	i) досягти політичної популярності
10. To redistribute a society’s wealth	j) позичка

Exercise 1.4 Complete the sentences:

1. Taxation is a system of …

1. raising money to finance government;

2. collecting payments of money from people;

3. distributing funds;

4. making loans.

2. Taxation is a source of …

1. national planning;

2. charity;

3. revenues;

4. investment.

3. Taxation is a tool for…

1. reducing prices;

2. redistributing a society’s wealth;

3. encouraging business;

4. maintaining the stability of a country’s economy.

Exercise 1.5 Read the statements. Are they true or false? Correct the false ones.

1. Taxation is a system of raising money from people and business.

1. True; b) False

2. Government could not exist without taxes.

1. True; b) False

3. The amount and kind of taxes have been debated throughout history.

1. True; b) False

4. People usually support their government in imposing taxes.

1. True; b) False

5. Every country has its own system of taxation.

1. True; b) False.

6. Borrowing is the main source for finance government’s activity.

1. True; b) False

7. Government sometimes uses taxes to achieve social and economic objectives.

1. True; b) False

8. Taxation helps government to maintain the stability of country’s economy.

1. True; b) False

Exercise 1.6 Make up sentences from the words.

1. by a state / imposed on an individual / A tax is / a financial charge or other levy / or a legal entity.

2. and the government expenditure / are often highly debated / in politics and economics / of taxes raised /The method of taxation.

3. wealth / from / to / Redistribution / the richer sections of society / means / transferring / poorer sections.

4. direct tax or indirect tax / Taxes / are sometimes / to / referred / as.

5. where the economy / the existence of a tax / is not perfectly competitive, / In some cases / can increase / economic efficiency.

6. is a tax / by reason / A property tax / of its ownership / imposed on property.

7. critical roles / Taxes / in the revenue systems / of all developed countries/ on people’s incomes / play.

8. so that / Tax laws / both / should be written / the taxpayer and tax-collector / can understand them.

Exercise 1.7 Complete the sentences below with the words and word expressions from the box.

compulsory charge cost revenue tax system imposed income

1. The only means most people have of paying taxes is the ______ they earn.

2. Taxes should be ______ justly.

3. In order to have an effective _______, government must have criteria or standards.

4. Much of government’s ______ comes from the income and property taxes.

5. A tax has been defined as a _______ imposed upon persons and businesses for public purposes.

6. The principal purposes of taxes is to pay for the ______ of government.