Unit 22 - Government and Taxation Flashcards
tax paid on the profits made from selling something you own
capital gains tax
tax paid on any property, money and other assets given to someone
capital transfer tax
the use of children to do work that should be done by adults
child labo(u)r
a tax on wages and salaries or on company profits
direct tax
positive or negative consequences of economic activities experienced by other people
externalities
a government’s plan for deciding how much money to borrow and to collect in taxes, and how best to spend it
fiscal policy
a tax that is paid at a single rate at all levels of income
flat tax
government actions to influence the way fincancial markets or particular industries operate
government intervention
how a nation’s total GDP is distributed amongst its population
income distribution
the tax people pay on their wages and salaries
income tax
a tax paid on property, sales transactions, imports
indirect tax
a tax paid on money or property you have received from someone who has died
inheritance tax
agreement between management and the employees of a company about salary working conditions etc
labo(u)r contract
a small mistake or exception in a tax law which allows you to avoid paying sth.
loophole
the forces that decide price levels in an economy whose activities are not influenced or limited by government
market forces
the smallest amount of money that an employer is legally allowed to pay someone who works for them
minimum wage
the crime of moving money that has obtained illegally through banks and other businesses to make it seem as if the money has been obtained legally
money laundering
pension that is paid by the state to people who stopped working because they’ve reached a particular age
old age pension
a tax leveled at a higher rate on higher incomes
progressive tax
situation in which rich people are taxed more and poor people are taxed less as a percentage of their incomes
redistributive taxation
a tax in which poor people pay a higher percentage of their income than rich people
regressive tax
money paid by the government to someone who cannot work because of illness
sickness benefit
a system of payments made by the government to people who are ill, poor or who have no job
social security
reducing the amount of tax you pay to a legal minimum
tax avoidance
illegal methods used by people or companies to reduce the tax they pay, or a particular situation where this happens
tax evasion
countries where taxes are low, where multinational companies often set up their head offices
tax haven
to distribute according to a plan
to allocate
to organize something to make a profit
to commercialize
in the UK, money that the government pays to unemployed people who are looking for a job
unemployment benefit
a tax that is paid at each stage in the production of goods or services, and by the final customer.
value-added tax (VAT)
a tax on personal property and financial assets above a particular level
wealth tax
