excess                  employment          hyperinflation       interest

producers            restrictions              spending                  supply

                            unemployment     weighted

 

1. What is the inflation rate in your country at present?

2. Can you give current examples of double and triple-digit inflation?

3. What is your government’s policy at the moment? Does it seem to be more concerned with price stability or with reducing unemployment?

Revision box

12. Use sentences 1 to 10 to make up a short text about “Government Spending”. Complete each sentence, by taking a middle part from the second box and from the third box:

1. If tax revenues are higher

2. If, on the contrary, government expenditures exceed

3. A structural surplus or deficit

4. A cyclical surplus or deficit, on the other hand,

5. Budget deficits have to be funded by the sale of government bonds,

6. The higher the amount of government bonds sold in a country,

7. Neo – classical economists

8. On the other hand, if the money supply is expanded,

9. The is partly due to the acceleration principle,

10. But of course everybody knows

________________________________________________________________  

 

a. called gilt - edged securities in Britain

b. call this “crowding out”,

c. increased government spending

d. is result of government policies such as

e. is the result of the business cycle:

f. money collected by taxes,

g. than government spending,

h. that increasing the money supply

i. the less capital is available

j. which is that increased demand for consumer goods

__________________________________________________________________k. a country has a budget deficit.

l. a country has a budget surplus.

m. almost inevitably leads to inflation.

n. and Treasury bonds in the USA.

o. and use it as an argument against Keynesian fiscal policies.

p. can raise output and investment, at least in the short term.

q. changes in spending or revenues caused by a boom or a slump.

r. for private sector investment.

s. produces a greater increased demand for capital goods.

t. tax rates, welfare and defense spending, and so on.

­­­­­­ Beginning	1	2	3	4	5	6	7	8	9	10
Middle
Ending

 

13. Match the following terms with the definitions below, and then use them to label the situations:

 

             classical unemployment            seasonal unemployment

cyclical unemployment         structural unemployment

frictional unemployment             voluntary unemployment

 

1. . . . . exists in trades or occupations where work fluctuates according to the time of year.

2. . . . . exists when people choose not to work, often because they cannot find jobs that pay enough money (e.g. more than social security benefits).

3. . . . . is temporary unemployment that arises when people voluntarily leave a job to look for another one.

4. . . . . is the loss of jobs caused when wages are too high

5. . . . . occurs during recessions, when the overall demand for labor declines.

6. . . . . occurs when the skills of available workers do not match the jobs vacant.

 

  I lost my job with                                     It’s crazy – the only

4,000 other people                                    jobs available round

when they closed                                       here pay less than I get

down the coal mine.                                   from Social Security.

 

1._________________                                  4. ____________________

 

I work with a traveling                                   I’m a skilled electrician,

circus in the summer,                                      but there’s such a slump

but it’s just closed for                                      in the construction

the winter.                                                        industry right now that

                                                                               I’m out of work.

2.__________________

                                                                               5.____________________

 

The union went on                                            I left my job last week

strike for 8% pay                                              after an argument with

rise. They got it, but                                         my boss. I’m sure I can

the company laid off                                         find something better.

ten of us.

3. __________________                                  6.____________________

14. Choose the correct words to complete each sentence:

1. The tax on wages and salaries (and business profits in the US) is called . . . . . In Britain the tax on business profits is called corporation tax.

  a. direct tax                b. income tax                  c. wealth tax

2. A tax that is levied at a higher rate on higher incomes is called a . . . . tax.

a. progressive             b. regressive                 c. value-added 

3. Property taxes, sales taxes, customs duties on imports, and excise duties on tobacco, alcoholic drinks, petrol, etc. are . . . .taxes.

    a. direct                       b. indirect                     c. value-added 

4. Most sales taxes are slightly. . . .because poorer people need to spend a larger proportion of their income on consumption than the rich.

a. progressive               b. regressive                c. repressive

5. A sales tax collected at each stage of production, excluding the already-taxed costs from previous stages, is called a . . . . .

a. sales tax                     b. value-added tax       c. added-value tax

6. Profits made from the sale of assets are liable to a . . . . tax.

a. capital gains               b. capital transfer        c. wealth

7. Gifts and inheritances are usually liable to . . . . tax.

a. capital gains               b. capital transfer        c. wealth

8. Reducing the amount of tax you pay to a legal minimum is called . . . . .

a. fiscal policy                b. tax avoidance           c. tax evasion

9. Making false declarations is called . . . . and is obviously illegal.

a. creative accounting     b. tax avoidance           c. tax evasion

10. Bringing forward capital expenditure (on new factories, machines, and so on) so that at the end of the year all the profits have been used up is known as making a

. . . . .

    a. mistake                           b. tax haven                c. tax loss

11. Multinational companies often set up their head offices in low-tax countries such as Liechtenstein, Monaco, the Cayman Islands, and the Bahamas, known as       

. . . . .

a. tax havens                        b. tax heavens             c. tax shelters

12. Criminal multinationals such as the Mafia tend to pass money through a series of companies in very complicated transactions in order to disguise its origin from tax inspectors and the police; this is known as . . . . money.

a. cleaning                              b. laundering               c. washing                 

15. Translate the text into English:

Два главных компонента деятельности по управлению налогами - это налоговые отчеты, согласование и налоговое планирование.

Первый из них включает подготовку отчетов, надлежащее указание текущих и отсроченных налоговых расходов и задолженностей по налоговым платежам в финансовых отчетах, а также контакты с налоговыми органами по проверке правильности начисления налогов.

  Налоговое планирование – это непрерывный процесс наблюдения, предвидения и установления связей между развитием бизнеса и развитием налогового законодательства для достижения оптимальных долгосрочных экономических преимуществ для корпорации.

16. All the words below can be combined with tax or taxation in a two - word partnership (e.g. tax accounting, progressive taxation). Add tax and /or taxation before or after the following words:

1. ……..accounting……               14. …….inspector…….

2. ……..allowance…….               15. …….loophole…….

3. ……..authority……..                16. …….loss………….

4. ……..avoidance……                17. …….payer………..

5. ……..consultant……                18. …….progressive…

6. ……..corporation….                 19. …….rates…………

7. ……..deductible…...                 20. …….rebate……….

8. ……..direct………..                  21. …….regressive…..

9. ……..evasion………                 22. …….retune………

10. ……..free…………..                 23. …….sales………

11. ……..haven…………                24. …….shelter……..

12. ……..income……….                 25. …….withholding...

13. ……..indirect………                 26. …….year…………