TAXATION

A few basic questions Who pays tax? Who collects tax and why? Do all taxpayers pay the same amount of tax? What is flat in flat tax? What is redistributed in redistributive taxation? Is it true that evading tax is much more dangerous than avoiding it? What happens in Croatia in February?

February in Croatia... Use the following words:  Taxpayers  Declare tax  Income tax, local surtax  File a tax return  Tax authorities (Tax Administration)

VerbsNouns?  Collect tax  Evade tax  Avoid tax  Declare tax

VerbsNouns  Collect taxtax collection  Declare taxtax declaration  Evade taxtax evasion  Avoid taxtax avoidance

Types of tax Croatia  value-added tax (VAT)  personal income tax  corporate income tax (corporate tax)  excise taxes  inheritance and gift tax  social security contributions *local surcharges, surtax  MacKenzie (MK) - p.112 Additional reading:

Taxation: pros and cons  What would J.K. Galbraith say? (R)  What would Milton Friedman say? (MK, p.110)  What do you say? (Find arguments in MK: p.113)