2. Match the terms with their definitions.
1. Direct tax a. the effect of a particular tax on people or
organization
2. Sales tax b. the percentage of an amount of money or of the
value of sth that has to be paid as tax
3. Taxation c.
is one that takes а larger percentage of a higher
income and а smaller percentage of a lower income
4. Proportional tax d. tax which is collected from businesses on the goods
and services that people buy from them
5. Value-added tax e.
a compulsory contribution to state revenue, levied
by the government on workers’ income and
business profits
6. Income tax f. tax which is collected directly from the person or
company who pays it
7. Ability-to-pay principle g.
the system or the act of collecting money by taxes;
money that has to be paid as taxes
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8. Marginal tax rate h. a tax levied on the value added to goods at every
stage of production.
9. Tax i. an amount of money that is paid back to you if you
have paid too much tax
10. Benefit principle j. a certain percentage of your income that you have to
pay regularly to the government.
11. Indirect tax k. is one that takes a higher percentage of a low income
and a lower percentage of a high income
12. Progressive tax l.
a theory that states that people who earn more
money should pay more tax, so that there are higher
rates of tax on higher incomes
13. Tax rate m.
a theory that states that the people who benefit more
from a government product or service should pay
more tax for it than those who benefit less.
14. Regressive tax n. a rate of tax that is paid on your next unit of income;
the highest rate of tax that sb pays
15. Tax incidence o.
is one that takes the same percentage of all incomes
regardless of size
16. Tax rebate p. a regressive tax added to the price of goods at the
time they are sold