- •Ministry of finance of ukraine
- •Preface
- •Unit 1 Why start a business?
- •Vocabulary
- •Why start a business?
- •2) What information do you think a business plan must represent? Reading
- •Contents of a business plan
- •What should be in the plan?
- •Business plan
- •Vocabulary
- •Text 3 Starting a new business
- •Vocabulary
- •Financial activities and their management
- •Vice – President for Finance
- •Vocabulary
- •Writing a summary (an abstract)1 of a text, a book, an academic paper etc. Steps in writing a summary
- •Here are a few tips for you about writing a summary and some useful expressions
- •Vocabulary
- •Can you answer the following questions?
- •Introduction to accounting
- •Vocabulary
- •Assets and liabilities
- •Current Fixed assets
- •Vehicles
- •Investments
- •Balance sheet
- •Financial statements
- •Value added statement
- •Vocabulary
- •Valuation of assets
- •Variable costs
- •Indirect costs
- •Imputed costs
- •Vocabulary
- •Costing methods
- •Vocabulary
- •The use of funds
- •Vocabulary
- •Sources of finance
- •Borrowing
- •Other sources of funds
- •Management of working capital
- •Vocabulary
- •Money and its functions
- •Nebraska
- •Florida
- •Bank credit
- •Тексти для самостійного читання у і семестрі3
- •Types and forms of business organization
- •Why are companies referred to as ltd., inc., gmbh, or s.A.?
- •The strategy of a company
- •Financial forecasting
- •Careers in finance
- •What is accounting?
- •Financial accounting
- •Business documents
- •Main streets store, inc
- •Main street store, inc Statement of Cash Flows For the Year Ended August 31, 20 XX
- •The ассоunt
- •Title of account Debit | Credit
- •Types of account
- •Тексти для самостійного читання у іі семестрі4
- •Classical economics
- •Keynesian economics (Part I)
- •Keynesian economics (Part II)
- •The importance of the rate of monetary growth
- •The basic propositions of monetarism (Part I)
- •The basic propositions of monetarism (Part II)
- •The monetary rule
- •The decline of monetarism
- •Supply-side economics (Part I)
- •(Part II) The Saving and Investment Effect
- •Supply - side economics (Part III) The Elimination of Productive Market Exchanges
- •Rational expectations theory
- •Government finance
- •Government Growth: Purchases and Transfers
- •Tax rates
- •Taxation
- •Types of taxes
- •Sources of federal revenue
- •Sources of State and Local Revenue
- •Tapescripts
- •Glossary
- •Indirect costs
- •Investment
Tax rates
Before we even begin to consider how much taxes are, we'll need to understand something about tax rates and the types of taxes that exist. Once that's done, we'll see just how onerous the American tax system really is.
The Average Tax Rate and the Marginal Tax Rate
If someone asked you what your tax rate was, would you have a ready answer? So the answer to the question "What's your tax rate?" is "Which tax rate are you referring to? My average tax rate or my marginal tax rate?"
We all pay tax at two different rates: the average rate and the marginal rate. The average rate is the overall rate you pay on your entire income, while the marginal rate is the rate you pay on your last few hundreds (or thousands) of dollars earned. Your marginal rate is often referred to as your tax bracket. In nearly all cases, I'm talking about the average and marginal rates that you're paying in personal income tax, but I'll apply the average tax rate to the Social Security tax as well.
The Average Tax Rate How do you answer the question "Tell me your average tax rate"?
Let's try a simple problem. The average tax rate is calculated by dividing taxes paid by taxable income:
Taxes paid
Average tax rate (ATR) = -------------------
Taxable income
Suppose a person paid $3,000 on a taxable income of $20,000. How much is the average tax rate? Do your calculations right here:
Taxes paid $3,000
Average tax rate = ------------------ = -------------=15=15%
Taxable income $20,000
The Marginal Tax Rate The average tax rate is the overall rate you pay on your entire income, while the marginal tax rate is the rate you pay on the last few hundred dollars you earned. Suppose you made $100 in overtime and the government took $70. Would you work overtime? Chances are you wouldn't, and that supposition forms a cornerstone of supply-side economics. The supply-siders' basic belief is that our high marginal tax rates rob people of the incentive to work as hard and as long as they would with a lower tax burden.
The marginal tax rate is calculated by dividing additional taxes paid by additional taxable income:
Additional taxes paid
Marginal tax rate (MTR) =--------------------------------------
Additional taxable income
Suppose you had to pay an additional $420 on an additional taxable income of $1,000. How much is the marginal tax rate?
Additional taxes paid $420 42
Marginal tax rate (MTR) = ---------------------------- = ----------- = ------ = 4,2=42%
Additional taxable $1,000 100
income
20.2. Find in the text the English equivalents of the following words and word-combinations:
ставка податку
існувати, жити
тяжкий, обтяжливий, важкий
середній
граничний
відсилати, відносити до
загальний
цілковитий, цілий, увесь
розряд оподаткування
ставитися до, використовувати, застосовувати
підраховувати, розраховувати
прибуток, обкладений податком
понаднормовий
наріжний камінь
позбавляти
стимул
податковий тягар
додатковий
20.3. Are these statements true or false? Correct the false ones.
a) The average tax rate is calculated by dividing taxes paid by taxable income.
Both juridical and natural persons pay taxes at two different rates.
The marginal tax rate is calculated by dividing assessed taxes paid by additional taxable income.
The American tax system is really burdensome.
20.4. Solve the problems:
Suppose you pay $ 12,000 on a taxable income of $ 50,000. How much is your average tax rate?
Suppose your taxable income rose from $ 20,000 to $ 22,000 and the taxes you paid rose from $ 4.500, to $ 5.200. How much is your marginal tax rate?
To solve these problems: (1) write the formulae, (2) substitute numbers into the formulae and (3) solve.
21.1 Read text 25. Define and put down the key words of each paragraph of the text.
TEXT 25