Words making the headlines – tax

The last word making the headlines was election and when there’s an election on, there’s one topic that is sure to be discussed. That topic, of course, is tax – should we be paying more or less and what should our governments spend the money on?

Everybody knows what tax is but be careful with the pronunciation of the plural form. Taxes/tæk.sɪz/ has a short /ɪ/ vowel sound in the second syllable. If you make this sound too long, people could think you are saying taxis /tæk.siːz/. That would be very confusing!

taxis /tæk.siːz/

Here’s a story from the website of the Guardian newspaper about the election promises of one of the major British political parties, the Labour Party. The story is about income tax, the tax that we pay on the money we earn from our jobs.

Other types of tax are:

Corporation tax – the tax that companies pay on their profits

Value Added Tax (VAT) or Sales tax – the tax on goods and services we buy every day.

The article also talks about tax revenue. This is the total amount of money the government collects from taxpayers: you and me.

The Labour party also promises to deal with tax avoidance. Tax avoidance is when people and companies use loopholes in the law to avoid paying some or all of their tax. Don’t confuse this with tax evasion which is when you just don’t pay your tax. Tax evasion is against the law and you can go to prison if the authorities catch you.

Here in Britain, the Labour Party says it will raise taxes by increasing the tax rate for the richest people. In the USA, President Trump wants to cut taxes, especially for business.

Paying tax is something we all have to do whether we like it or not. However, everybody seems to like talking about tax. In fact, Benjamin Franklin is supposed to have said,

‘There are only two things certain in life: death and taxes.’

See how many of these words you can use next time a conversation in English turns to the subject of tax.

If you would like to suggest a word from the news for future blog posts, please use the comment box.

Listen to Barney reading this text.

By Barney

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