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Everyone knows that taxation is necessary in a modem state: without it , it would not be possible to pay the soldiers and policemen who protect us; _____ the workers in government offices who   _____ our health, our food, our water, and all the other things that we cannot do for ourselves. _____ taxation, we pay for things that we need just as much as we need somewhere to live and something to eat.

_______ everyone knows that taxation is necessary, different people have different ideas about ________ taxation should be arranged.

In most countries, a direct tax on _____, which is called income tax, exists. It is arranged in such a ______ that the poorest people pay nothing, and the percentage of tax grows ______ as the taxpayer’s income grows. In some countries, for example, the tax on the richest people goes up as high as ninety-five per cent!

And countries with taxation nearly ____ have indirect taxation too. Many things imported into the country have to pay taxes or “duties” Of course, it is the men and women who buy these imported things in the shops _____. really have to pay the duties, in the ______ of higher prices. In some countries, ______, there is a tax on things sold in the shops. If the most necessary things are taxed, a lot of money is ______ but the poor people suffer most. If unnecessary things ______ jewels and fur coats are taxed, less money is obtained but the tax is _______ as the rich pay it.

Probably this last kind of indirect tax, together with a direct tax on incomes which is low for the poor and high for the rich, is the best arrangement.