Taxation. Налогообложение

Funds are withdrawn from the circular flow in the form of taxation by the government. It levies two types of tax:

· Direct taxes, such as income tax, corporation tax (on profits) and other taxes on income or wealth;

· Indirect taxes, such as VAT and customs and excise duties, which are levied on spending by all of us;

If the authorities withdraw funds through taxation and then fail to spend this tax revenue, the circular flow will reduce the level of activity in the economy.

Taxation policy has been substantially altered by the Conservative government in the 1980s and early 1990s. It has reduced direct taxes because of the belief that taxation of this kind reduces the incentive to work and so dampens the spirit of enterprise in the economy. Indirect taxes, such as VAT, have been increased to make up for some of the revenue lost from direct taxes. The government has thus transferred the tax burden from direct to indirect taxes. The total burden of taxation has hardly altered.

VOCABULARY NOTES

leakage – утечка

which are not passed on as – которые рассматриваются не как...

with the likely result that – в результате чего может; результатом чего может

savings – сбережения, накопления

a number of factors are thought to determine – считается, что ряд факто­ров определяет

the return on his or her savings – отдача, процент, доход от... сбережений

there is evidence that – очевидно, что

to place great store by – придавать большое значение

due to – благодаря, из-за

to remove from – удалить, изъять

insufficient to cover – недостаточный для покрытия (расходов)

to encourage smb to do smth – побуждать кого-то сделать что-то

in the long term (ant. in the short term) – в (отдаленном) будущем

domestic industry – национальная промышленность

to withdraw – изымать, выводить, удалять

to levy – взимать, облагать (о налогах)

direct (indirect) taxes- прямые (косвенные) налоги

income tax – подоходный налог

corporation tax (on profits) – налог с прибыли (доходов) корпораций

VAT (value added tax) – НДС (налог на добавленную стоимость)

customs duty – таможенная пошлина

excise duty – акцизный сбор

and then fail to spend this tax revenue – а затем не могут распорядиться (потратить) этими налоговыми поступлениями

has been substantially altered – была значительно изменена

and so dampens the spirit of enterprise – и таким образом подавляет дух предпринимательства

to make up for – компенсировать, восполнять tax burden – бремя налогов