Referring to the influence of state tax policy on the income distribution, it is necessary to consider in more detail the role of the state in society in every societies, governments provide services such as national defense, police, education, fire service, and in the administration of justice. In addition, the government budget is carried out through transfer payments to some members of society.Transfer payments are payments made to individuals that do not require providing any services in return. Examples are social security, pension payments, unemployment benefits, and in some countries, food stamps. State costs associated with the provision of goods and services (defense, police) or transfer payments, financed mainly by imposing taxes, although some (small) residual components can be financed by government borrowing. In each case we consider four indicators of public expenditure as a percentage of national income: spending on the direct provision of goods and services, transfer payments, interest on public debt and General expenses.Italy is a country of "big government". It costs the state large, and it needs to increase accordingly greater tax revenues. On the contrary, Japan has a much smaller government sector and needs to raise correspondingly less tax revenue. These differences in the scale of public activities compared to national income reflect differences in how different countries allocate their resources among competing uses.Governments spend part of their income on specific goods and services such as tanks, schools and public safety. They directly affect what is produced. The low share of Japan in public expenditure on goods and services. Governments affect for whom the products are produced through their tax and transfer payments. Through taxation of the rich and of the implementation of transfers to the poor, the government ensures that the poor are allocated more of what is produced than otherwise; and the rich get correspondingly less.The government also affects how goods are produced, for example , through the rules it imposes. Managers of factories and mines must comply with the safe requirements, even if it is expensive to implement, firms are forbidden freely to pollute the atmosphere and rivers, offices and factories are banned in attractive residential parts of the city.The scale of government activities in the modern economy is highly controversial. The UK government receives around 40 percent of national income in taxes. Some governments take a larger share, others a smaller share. Different shares will certainly affect the questions what, how and for whom, but some believe that a large government sector makes the economy inefficient, reducing the number of goods that can be produced and eventually allocated to consumers.Usually it is argued that high tax rates reduce the incentive to work. If half of everything we earn goes to the government, we might prefer to work less hours per week and spend more time in the garden or watch TV. This is one of the possibilities, but there is another one: if workers have in mind targeted earnings after tax, for example, to have at least a sufficient number of foreign holiday every year, they will have to work longer hours to achieve this target when taxes are higher.While in equilibrium, high taxes make people work more or less remains an open question. The social security payments and unemployment benefits are more likely to reduce incentives to work since they actually contribute to target income. If large-scale government activity leads to significant negative effects, government activity will affect not only what and how, and for whom goods are manufactured, and also how much is produced in the economy.Find in the text the terms to these definitions and translate them: * money paid to people without asking for a service in return * money paid to people when they stop working * money paid to people who have no work * money owed by the government of a country * money received by governments from taxation * money a worker keeps after paying taxes
Referring to the influence of state tax policy on the income distribution, it is necessary to consider in more detail the role of the state in society in every societies, governments provide services such as national defense, police, education, fire service, and in the administration of justice. In addition, the government budget is carried out through transfer payments to some members of society.Transfer payments are payments made to individuals that do not require providing any services in return. Examples are social security, pension payments, unemployment benefits, and in some countries, food stamps. State costs associated with the provision of goods and services (defense, police) or transfer payments, financed mainly by imposing taxes, although some (small) residual components can be financed by government borrowing. In each case we consider four indicators of public expenditure as a percentage of national income: spending on the direct provision of goods and services, transfer payments, interest on public debt and General expenses.Italy is a country of "big government". It costs the state large, and it needs to increase accordingly greater tax revenues. On the contrary, Japan has a much smaller government sector and needs to raise correspondingly less tax revenue. These differences in the scale of public activities compared to national income reflect differences in how different countries allocate their resources among competing uses.Governments spend part of their income on specific goods and services such as tanks, schools and public safety. They directly affect what is produced. The low share of Japan in public expenditure on goods and services. Governments affect for whom the products are produced through their tax and transfer payments. Through taxation of the rich and of the implementation of transfers to the poor, the government ensures that the poor are allocated more of what is produced than otherwise; and the rich get correspondingly less.The government also affects how goods are produced, for example , through the rules it imposes. Managers of factories and mines must comply with the safe requirements, even if it is expensive to implement, firms are forbidden freely to pollute the atmosphere and rivers, offices and factories are banned in attractive residential parts of the city.The scale of government activities in the modern economy is highly controversial. The UK government receives around 40 percent of national income in taxes. Some governments take a larger share, others a smaller share. Different shares will certainly affect the questions what, how and for whom, but some believe that a large government sector makes the economy inefficient, reducing the number of goods that can be produced and eventually allocated to consumers.Usually it is argued that high tax rates reduce the incentive to work. If half of everything we earn goes to the government, we might prefer to work less hours per week and spend more time in the garden or watch TV. This is one of the possibilities, but there is another one: if workers have in mind targeted earnings after tax, for example, to have at least a sufficient number of foreign holiday every year, they will have to work longer hours to achieve this target when taxes are higher.While in equilibrium, high taxes make people work more or less remains an open question. The social security payments and unemployment benefits are more likely to reduce incentives to work since they actually contribute to target income. If large-scale government activity leads to significant negative effects, government activity will affect not only what and how, and for whom goods are manufactured, and also how much is produced in the economy.Find in the text the terms to these definitions and translate them: * money paid to people without asking for a service in return * money paid to people when they stop working * money paid to people who have no work * money owed by the government of a country * money received by governments from taxation * money a worker keeps after paying taxes
* money paid to people without asking for a service in return
* money paid to people when they stop working
* money paid to people who have no work
* money owed by the government of a country
* money received by governments from taxation
* money a worker keeps after paying taxes
* money paid to people without asking for a service in return
* money paid to people when they stop working
* money paid to people who have no work
* money owed by the government of a country
* money received by governments from taxation
* money a worker keeps after paying taxes