Exercise 6 Translate from Russian into English

1. Тремя главными источниками государственных доходов являются: личный подоходный налог, отчисления на социальное страхование, а так же акцизные сборы и налоги с продаж.

2. Налоги с продаж и акцизные сборы, которые по своему значению стоят на втором месте, являются налогами, взимаемыми с продаж определенных товаров.

3. В США на федеральном уровне имеются акцизы на алкогольные напитки и табачные изделия, а так же на автомобили, телефонные переговоры и авиационные билеты.

4. На уровне штатов и местных органов важным источником доходов являются налоги на продажи вообще ( при этом некоторые товары часто от них освобождаются).

5. “Налоги – это наша плата на цивилизованность общества” (Оливер Уэнделл Холмс)

6. Уровень налогов определяется главным образом размером государственных расходов.

7. Облагая высоким налогом заработную плату правительство может вынудить людей меньше работать, а вводя налог на бензин, - заставить меньше ездить на автомобилях.

8. Органы власти США – Федеральное правительство, правительства штатов и местные органы собирают в виде налогов сумму, равную почти 1/3 ВНП. Этот показатель ниже, чем в большинстве промышленно развитых странах.

Unit 17. Taxation in canada

Exercise 1

Practise reading the following words and collocation:

a) independent; defence; provinces; responsibilities; crisis; provincial government; enough; however; percentage; average; significantly; throughout; wealthy; inelastic; recipient;

b) centralized federal government; unlimited revenue gathering abilities; direct taxes; health care and education; the largest source of provincial funding; license permits; federal government; nineteenth century; skyrocketing welfare costs; health of economy; dramatic change; the greatest bulk of government funding; tariffs, fees and investments; source of revenue; both residential and commercial properties; cigarettes, gasoline and alcohol; Employment Insurance system; relatively; withholding tax;

c) to attempt; to be entrusted with; to be meant; to result in; to be responsible for; to dependent on; to be funded; to account for; to be levied on.

Taxation in canada

When Canada became independent in 1867 the British North America Act attempted to create a centralized federal government with unlimited revenue gathering abilities. The federal government was entrusted with the high cost programs, most notably defence and the building of railways. The provinces were given limited taxation power; they could only impose direct taxes such as sales and income tax. They were given responsibilities that were meant to be cheaper such as health care and education.

For the early part of Canadian history most federal government revenue came from tariffs on trade with excise taxes making up the rest of the government’s funding. The largest source of provincial funding was license permits and transfers of funds from the federal government. The first corporate taxes were introduced at the end of the nineteenth century.

This resulted in a crisis during the Great Depression. The provincial governments were responsible for the skyrocketing welfare costs, but they could not raise enough taxes, especially since the taxes permitted the provinces were so dependent on the health of economy. The federal government still had plenty of money, however. This resulted in the system of transfer payments between two levels of government that continues to this day.

The First World War had mostly been financed by traditional means, but the Second World War led to a dramatic change in the tax system. The percentage of Canadian government revenue from indirect taxes fell from 90% in 1913 to less than 40% by 1946. Instead Canadians began to pay income taxes and direct taxes have since provided the greatest bulk of government funding.

Nowadays Canada’s taxation rate is about average among OECD countries, but it is significantly higher than the rate in the United States, the country with which Canada usually compares itself. In total, about 36.8% of Canada’s GDP goes to taxes. And today about over 70% of government income comes from taxation, the rest from tariffs, fees and investments.

Income taxes (over 40% of tax revenue) are the most significant sources of revenue for the federal and provincial governments. Income taxes throughout Canada are progressive, with the wealthy paying a higher percentage than the poor. But Canadian income taxes are still less progressive than those of many nations.

The federal government also imposes a 7% sales tax on most purchases known as the GST. Every province except for Alberta has a provincial sales tax of some sort.

The municipal level of government is funded largely by property taxes on both residential and commercial properties. These account for about 10% of total taxation in Canada.

Both the federal and provincial governments impose hefty excise taxes on inelastic goods such as cigarettes, gasoline and alcohol. A great bulk of the costs of these items in Canada is taxes.

A levy for the Employment Insurance system and the Canada Pension Plan is paid by every worker and these along with smaller services like workers’ compensation account for 12% of government taxes.

Also companies and corporations in Canada pay tax on profit income and on capital gains. These make up a relatively small portion of total tax revenue. A withholding tax is levied on dividends paid – this is a tax credit to the account of the dividend recipient.