1. TAXATION, MK, U 22 Tax, n. (U C) Money that you have to pay to the government according to your income, property, goods etc. Tax, v. (T) to make a person or organization pay tax. E.g. The govt. taxed the shareholders on the dividends they receive. The shareholders get/are taxed on the dividends. (Longman Business English Dictionary)

2. CHOOSE THE RIGHT WORD 1.The main purpose of taxation is to raise/rise revenue for government spending. 2.Taxes also reduce/provide inequality through redistribition. 3.Taxes are decreased/levied for the purpose of repricing. 4.A consequential effect of taxation is representation (rulers tax/levy citizens, and citizens demand accountability from their rulers).

3. CHOOSE THE RIGHT WORD 1.The main purpose of taxation is to raise/rise revenue for government spending. 2.Taxes also reduce/provide inequality through redistribition. 3.Taxes are decreased/levied for the purpose of repricing. 4.A consequential effect of taxation is representation (rulers tax/levy citizens, and citizens demand accountability from their rulers).

4. The Four “R”s Four main purposes of taxation Revenue, ____________, Repricing & Representation 1. Revenue: taxes r______ money to spend on public goods and g___________ functions (e.g. market regulation or legal systems).evenue 2. R____________. Transferring wealth from the richer sections of society to poorer sections. 3. Repricing. Taxes are l_________ to address externalities: tobacco is taxed, for example, to discourage smoking.Repricing 4. Representation. “No taxation w_________ representation!"Representation = rulers tax citizens & citizens demand accountability from rulers

5. The Four “R”s Four main purposes of taxation Revenue, Redistribution, Repricing & Representation 1. Revenue: taxes raise money to spend on public goods and government functions (e.g. market regulation or legal systems).evenue 2. Redistribution. Transferring wealth from the richer sections of society to poorer sections.Redistribution 3. Repricing. Taxes are levied to address externalities: tobacco is taxed, for example, to discourage smoking.Repricing 4. Representation. “No taxation without representation!“ = rulers tax citizens & citizens demand accountability from rulersRepresentation → MK, p 112 - Vocabulary

6. Vocabulary, MK p 112 1 income taxNote: flat rate of income tax 2 direct tax(the same for everybody) 3 progressive tax – the more you earn the more 4 indirect taxtax you pay 5 value-added tax Pls. Compare flat rate tax 6 capital gains tax with progressive tax 7 inheritance tax 8 wealth tax 9 tax evasion11 tax havens 10 tax avoidance12 a loophole