Unlocking Word
Meanings
Read the following words/expressions found in
today’s article.
1.
stimulate (v.) [stim-yuh-leyt] – to encourage (something) to start or progress further
Example: Encouragement from his boss
stimulated him to work harder.
2. differentiate
(v.) [dif-uh-ren-shee-eyt] – to determine the differences from other things
Example: Her love for sports differentiates her
from her sister who loves painting.
3. abruptly
(adv.) [uh-bruhpt-lee] – suddenly or unexpectedly
Example: His bad mood abruptly changed when he
realized that today is his pay day.
4. spur
(v.) [spur] – to urge forward hurriedly
Example: The soldiers bravely spurred on to
their destination despite the snowstorm.
5. standard
of living (n.) [stan-derd uhv [liv-ing] – the level of comfortable life as measured by available
goods, services and luxury
Example: Rich countries have high standards of
living.
Article
Read the text below.
Decreasing taxes for low and middle income
families stimulate the economy
faster than tax cuts among the rich, according to a US economist.
Economist Alan Vlard made this comment in
response to politicians who criticize President Obama’s proposal to increase
tax among wealthy Americans.
Vlard differentiates
the results of tax cuts between the rich and the non-rich. He says that the
rich can save more money from tax cuts, because they have enough money to
live on. The rich may spend money on luxury, but they will still have enough
left to invest in business through banks or the stock market. That could
result to more investments which can eventually lead to more jobs. However,
it takes a long time for the benefits to be felt.
Vlard suggests that if politicians want to create
more jobs right away, tax cuts should be focused on the non-rich. He says
that whenever the poor and the middle class get extra cash, they spend it
immediately to make up for what they lack or what they need, such as
groceries and home appliances. As the spending for immediate demands increases,
the economy abruptly spurs. Vlard says this battles the number
one reason why business owners freeze hiring – poor sales.
Vlard also takes note of tax policies that have
long term and short term effects. Although increasing immediate demand
creates more jobs within a year, increasing the national savings raises a
country's standard of living in
the next 10 to 20 years. This makes tax hikes among the rich significant.
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Viewpoint Discussion
Enjoy a discussion with your tutor.
Discussion
A
·
How
do the tax rates in your country compare with those in neighboring countries?
·
Do
you agree with hiking the taxes for the wealthy? Explain your answer.
Discussion
B
·
How
important are tax policies for a country’s economy?
·
What
changes would you like to see in your country’s tax system?