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.

a) True; b) False

2. Government could not exist without taxes.

a) True; b) False

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

a) True; b) False

4. People usually support their government in imposing taxes.

a) True; b) False

5. Every country has its own system of taxation.

a) True; b) False.

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

a) True; b) False

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

a) True; b) False

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

a) 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.