TRANSLATION OF TEXTS

Prepared Yanina Nikolaichuk group FB-201

 is a means by which governments
finance their expenditure by imposing
charges on citizens and corporate
entities.
 Tax
is a financial charge or other levy imposed
upon a taxpayer by a state or the functional
equivalent of a state to fund various public
expenditures.
Governments finance most
of their expenditure by
taxation.

TAXES ARE USED TO PAY FOR

PEOPLE WHO WORK FOR

the government, such

as the military &
police. education & health care,
pensions for the elderly,
unemployment benefits, and
public transportation.

on war, the enforcement of law

and public order, protection of
property.
 When taxes are not fully paid, the state may
impose
civil penalties criminal penalties

on the non-paying entity or individual.

 Three Criteria for Effective Taxes.
equity simplicity efficiency

which Tax laws should A tax should be relatively

be written so easy to administer and
means that
that both reasonably successful at
taxes should
taxpayers and generating enough
be impartial
tax collectors
and just. revenue while not
can understand
harming the economy.
them.
 two principles taxation
The benefit principle The ability-to-pay principle.

The benefit principle of states that that

taxation states that those who
benefit from government
goods and services should
pay in proportion to the
amount of benefits they
receive.
people should be
taxed according to
their ability to pay,
regardless of the
benefits they receive.
The most fundamental classification of taxes is based on who
collects the taxes from the tax payer. Taxes can be either direct or
indirect.
 Direct Taxes
property taxes
capital gain tax
income taxes inheritance tax

corporation tax
 Indirect taxes
VAT or value-added
excise taxes or excise duties
tax
sales taxes
 Non-payment of tax
tax havens
tax evasion
tax avoidance
 There are three categories into which
we can place direct and indirect taxes:

Progressive taxes Regressive Proportional Tax

taxes

The more money

A proportional tax
individuals make
A tax that takes a larger imposes the same
the higher
percentage from low- percentage rate of
percentage of their
income people than from taxation on
income they have
high-income people everyone, regardless
to pay.
of income.
To conclude, we can say that the instrument of
taxation is of great importance on

• Increasing the level of economic activity

• Reducing income inequalities
• Promoting economic growth