1. The Role of Government and Taxation

2. An opinion Watch David Cameron’s talk (14 min.) on http://www.ted.com/talks/lang/eng/david_cameron.html Listen carefully and take detailed notes on D. Cameron’s talk. What does the British Prime Minister say about the role of government today and before? What makes him a good presenter?

3. David Cameron on the role of the government (Ted Talk) a) Three periods in history according to D. Cameron? b) Reason for each period? c) According to D. Cameron, the role of the government today is to give people … ?

4. Explain the meaning of the sentences below: An essential part of economic freedom is freedom to choose how to use our income... Currently, more than 40% of our income is disposed of on our behalf by government at federal, state and local levels combined. Milton and Rose Friedman MK: p.110

5. TAXATION

6. 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?

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

8. VerbsNouns? collect tax evade tax avoid tax declare tax

9. VerbsNouns collect taxtax collection declare taxtax declaration evade taxtax evasion avoid taxtax avoidance

10. Types of tax Croatia value-added tax (VAT) personal income tax (PIT) corporate income tax (CIT), corporate tax, profit tax excise taxes (excise duties) inheritance and gift tax social security contributions surtax, local surcharges... MacKenzie (MK) - p.112 Additional reading: http://www.ijf.hr/eng/taxguide/2010.pdf

11. Work on Text (1) Dodger Mania (Source: The New Yorker, July, 2011) Business English words government debtbudget deficitloophole defaultshadow economy backlog austerity plantax revenueexemption bailoutregressive taxcompliant public spendinglaw enforcement underreport tax evasiontax compliancetax rate central bankfraudtaxpayers Source: http://www.newyorker.com/talk/financial/2011/07/11/110711ta_talk_surowiecki

12. Work on Text (2) Dodger Mania, The New Yorker, July, 2011 IWhich paragraphs fall within the headings below? 1.The problempg./pgs. __ 2.Reasons for the problem pg./pgs. __ 3.Implications pg./pgs. __ 4.New attempts pg./pgs. __ 5.Not an easy task pg./pgs. __ IIMake one sentence about each part of the text (1-5). Source: http://www.newyorker.com/talk/financial/2011/07/11/110711ta_talk_surowiecki

13. Taxation: pros and cons What would J.K. Galbraith say? (RB: p. 36) What would M. Friedman say? (MK: p.110) What does Warren Buffet say? http://www.youtube.com/watch?v=oi6BQLM4aqo&feature=related What do others say? ( MK: p.113)