Questões: Ministério da Fazenda, Inglês, 2.005, ESAF

Ministério da Fazenda
Cargo: Técnico da Receita Federal - TRF - 2005
Área: Tributária e Aduaneira

Read the text entitled “The case for flat taxes” in order to answer questions 31 to 34:

The case for flat taxes
Source: The Economist (adapted)
Apr 14th 2005
Estonia’s economy has grown impressively since its 1994 reform. Growth reached double digits in 1997, and has since settled at around 6% annually, after a slump at the turn of the century. Repealing its high tax rate on the rich did not erode the country’s tax base as some might have feared. In 1993, general government revenues were 39.4% of the gross domestic product (GDP); in 2002, they were 39.6%. Estonia now plans to cut its fl at tax from 26% to 20% by 2007. How much do Estonia’s robust revenues owe to its fl at income tax? Perhaps less than is frequently advertised. In 1993, the year before its reform, Estonia’s multiple personal income taxes raised revenues amounting to 8.2% of GDP. In 2002, its fl at income tax
raised revenues worth just 7.2%. Indeed, the fl at income tax that generated so much excitement abroad seems to be carrying less weight than Estonia’s old-fashioned value-added tax (VAT), which raised 9.4% of GDP in revenues in 2002.
VAT is, of course, the fl attest tax of all. It levies a uniform rate on the goods you buy, taking a constant cut of your money when it is spent as opposed to when it is earned. Estonia’s VAT is also quite broad, leaving relatively few things out (hydropower and windpower were two curious exceptions).

31 - In paragraph 1, the author provides a brief outline of
a) Estonia’s growth in 1994.
b) a country’s reform attempt.
c) Estonia’s burdensome tax system.
d) a country’s growth and fi scal policy.
e) a country’s upcoming interest rates.

32- The author mentions a slump in Estonia’s growth at the turn of the century which characterizes
a) a much less successful period.
b) a remarkable period of prosperity.
c) a slightly better fi scal period.
d) a landmark in Estonia’s growth.
e) the beginning of Estonia’s growth.

33- In paragraph 2, the role played by Estonia’s fl at income tax in relation to its “robust revenues” is
a) ignored.
b) questioned.
c) omitted.
d) not mentioned.
e) disregarded.

34- In paragraph 3, the author refers to VAT , a tax which
a) is about to be raised.
b) may frequently be dodged.
c) might be repealed.
d) will be simplifi ed.
e) has already been set.

Read the text entitled “The prices of sin” in order to answer questions 35 to 37:

The prices of sin
Source: The Economist (adapted)
Aug 25th 2005
Much ministerial brow-sweat has been devoted to turning Britons into healthier, better-adjusted citizens, but the public has a nasty habit of spoiling the party. New figures provoked hand-wringing this week when they suggested that British alcohol consumption is rising even as the French and the Germans are drinking less. Alcoholfuelled crime is on the increase and smoking rates, which the government has promised to reduce, are stuck. To economists, the solution is obvious: just raise taxes on the goods in question. Successive governments have taken this advice to heart, leaving Britain with some of the highest “sin taxes” in Europe. Yet Labour has abandoned fi scal tinkering for a sort of social engineering that comes over as inconsistent: liberal laws that allow pubs to open around the clock in the hope of curing Britain’s drink culture sit oddly with authoritarian plans to forbid smoking in public places.

35- The author
a) describes the successful health service in Germany.
b) looks into the increase in alcohol consumption in France.
c) comments on the politics of alcohol in Britain.
d) praises the effectiveness of some British social policies.
e) sets up policies concerning alcohol consumption in Britain.

36- In paragraph 1, the new fi gures related to the British alcohol consumption are said to have caused
a) worries.
b) consternation.
c) relief.
d) disbelief.
e) mistrust.

37- According to the text, the “sin taxes”
a) are likely to be adopted in Britain.
b) have been proposed by the German authorities.
c) should have been implemented in Britain.
d) must be forbidden by the European Union.
e) have been put into practice by British governments.

Read the interview below entitled “When should you start to worry?” in order to answer questions 38 to 40:

When should we start to worr
Source: Newsweek (adapted)
Oct 17, 2005
I’m concerned about the long-term risks of drinking a lot of caffeine (two or more cups of coffee a day). I have no family history of heart disease and no history of heart trouble. Am I at risk? Dr. Thomas H. Lee: I wouldn’t worry about the caffeine in a few cups of coffee. Lots of caffeine can rev up your heart and make it beat faster, occasionally even launching into prolonged periods of a racing heart. You will almost surely feel palpitations if you get these abnormal heartbeats, and then you should heed your body’s advice to cut back on the caffeine. Heavy coffee drinkers don’t have a higher risk of cardiomyopathy (damaged heart muscle) or heart attacks. If you do decide to cut back on caffeine, you may experience headaches during the transition. Until recently, vitamin E was touted as a good-heart supplement. Now several studies indicate that vitamin E supplements can increase the risk of heart disease or stroke. Does the medical community agree? Dr. Thomas H. Lee: You have it right. In the 1990’s, vitamin E was very promising – but controversial. Epidemiological studies showed that regular vitamin E users had 20 to 40 percent lower rates of heart disease than nonusers. Since then, larger experiments have not shown any benefi t from taking vitamin E.

38- In his answer to question 1, Dr. Lee warns against drinking lots of caffeine since it
a) might cause a sudden faint.
b) can slow the heartbeats.
c) may accelerate the heartbeats.
d) will surely increase the heartbeats.
e) damages the heart muscle.

39- According to Dr. Lee, we should listen to our body’s advice to “cut back on the caffeine”. In other words, our body advises us
a) not to stop drinking it.
b) to reduce our caffeine intake.
c) to increase caffeine consumption.
d) to regularly consume caffeine.
e) to quit caffeine consumption.

40- In his answer to question 2, Dr. Lee
a) prescribes the intake of vitamin E supplements.
b) points out the risks of taking vitamin E.
c) bears out the claim that supplements are risky.
d) demystifi es the benefits from taking vitamin E.
e) corroborates the benefits of vitamin E intake.

Gabarito:
30 - B
31 - D
32 - A
33 - B
34 - E
35 - C
36 - A
37 - E
38 - C
39 - B
40 - D