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Why should it be so complicated just figuring out how much tax to pay? (record keeping, software, filling out forms . . . many times cost much more than the amount of taxes due) The cost of compliance makes the U.S. uncompetitive and costs jobs and lowers our standard of living.Taxes can be viewed as having 4 uses (or purposes) in our (and most) governments:Revenue generation (to pay for public services).Fiscal policy control (e.g., If the government wishes to reduce the money supply in order to reduce the risk of inflation, they can raise interest rates, sell fewer bonds, burn money, or raise taxes. In the last case, this represents excess tax revenue over the actual spending needs of the government).Wealth re-distribution. One argument for this is that the earnings of a country can be perceived as belonging to all of its citizens since the we all have a stake in the resources of the country (natural resources, and intangibles such as culture, good citizenship, civic duties). Without some tax policy complexity, the free market alone does not re-distribute wealth according to this "shared" resources concept. However, this steps into the boundary of Purpose # 4...A way to implement Social Policy (and similar government mandated policies, such as environmental policy, health policy, savings and debt policy, etc.). As Government spending can be use to implement policies (e.g., spending money on public health care, environmental cleanup, education, etc.), it is equivalent to provide tax breaks (income deductions or tax credits) for the private sector to act in certain ways -- e.g., spend money on R&D, pay for their own education or health care, avoid spending money on polluting cars by having a higher sales tax on these cars or offering a credit for trade-ins [ref: Cash for Clunkers]).Uses # 1 & 2 are rather straight-forward, and do not require a complex tax code to implement. Flat income and/or consumption (sales) taxes can easily be manipulated up or down overall for these top 2 uses. Furthermore, there is clarity when these uses are invoked. For spending, we publish a budget. For fiscal policy manipulation, the official economic agency (The Fed) publishes their outlook and agenda.Use # 3 is controversial because there is no Constitutional definition for the appropriate level of wealth re-distribution, and the very concept of wealth re-distribution is considered by some to be inappropriate and unconstitutional. Thus, the goal of wealth re-distribution is pretty much hidden in with the actions and policies of Use #4 (social policy manipulation).Use # 4, however, is where the complexity enters the Taxation system. Policy implementation through taxation (or through spending) occurs via legislation. Legislation (law making) is inherently complex and subject to gross manipulation by special interests during formation and amendments. Legislation is subject to interpretation, is prone to errors (leading to loopholes) and both unintentional or intentional (criminal / fraudulent) avoidance.The record keeping and forms referred to in the question are partially due to the basic formula for calculating taxes (i.e., percentage of income, cost of property, amount of purchase for a sales tax, ...). However, it is the complexity (and associated opportunities for exploitation) of taxation legislation for Use # 4 (Social Policy implementation) that naturally leads to complexity in the reporting requirements for the tax system.
Reading comprehension questions from 2017 CSAT exam. Give it a try.?The questions this time was deliberately vague and seems like something that you guys usually would want to solve (and let us know the answers too). There are many keys out there with different answers. Let's see how these forum members take on this. I am posting only the questions to not bias your ideas in any way. Give it a try.Really problematic ones are question 2, 9, 10, 11, 14, 15, 16, 18, 19, 25, 27, 32. You know what please solve it all, it is just 32 questions.Passage-1What climate change will undeniably do is cause of amplify events that hasten the reduction of resources. Competition over these diminishing resources would ensue in the form of political or even violent conflict. Resource-based conflicts have rarely been overt and are thus difficult to isolate. Instead, they take on veneers that appear more politically palatable. Conflicts over resources like water are often cloaked in the guise of identity or ideology.Qn 1: What does the above passage imply?(a) Resource-based conflicts are always politically motivated.(b) There are no political solutions to resolve environmental and resource based conflicts.(c) Environmental issues contribute to resource stresses and political conflict.(d) Political conflict based on identity or ideology cannot be resolved.Passage-2The man who is perpetually hesitating which of the two things he will do first, will do neither. The man who resolves, but suffers his resolution to be changed by the first counter Suggestion of a friend—who fluctuates from opinion to opinion and veers from plan to plan-can never accomplish anything. He will at best be stationary and probably retrograde in all. It is only the man who first consults wisely, then resolves firmly and then executes his purpose with inflexible perseverance, undismayed by those petty difficulties which daunt a weaker spirit—that can advance to eminence in any line.Qn 2: The keynote that seems to be emerging from the passage is that(a) we should first consult wisely and then resolve firmly(b) we should reject suggestions of friends and remain unchanged(c) we should always remain broad-minded(d) we should be resolute and achievement-orientedPassage-3During the summer in the Arctic Ocean, sea ice ha, been melting earlier and faster, and the winter freeze has been coming later. In the last three decades, the extent of summer ice has declined by about 30 per cent. The lengthening period of summer melt threatens to undermine the whole Arctic food web, atop which stand polar bears.Qn 3: Which among the following is the most crucial message conveyed by the above passage?(a) Climate change has caused Arctic summer to be short but temperature to be high.(b) Polar bears can be shifted to the South Pole to ensure their survival.(c) Without the presence of polar bears, the food chains in Arctic region will disappear.(d) Climate change poses a threat to the survival of polar bears.Passage-4Why do people prefer open defecation and not want toilets or, if they have them, only use them sometimes? Recent research has shown two critical elements: ideas of purity and pollutions, and not wanting pits or septic tanks to fill they have to be emptied. These are the issue that nobody wants to talk about, but if we want to eradicate the practice of open defection, they have to be confronted and dealt properly.Qn 4: Which among the following is the most crucial message conveyed by the above passage?(a) The ideas of purity and pollutions are so deep-rooted that they cannot be removed from the minds of the people.(b) People have to perceive toilet use and pit-emptying as clean and not polluting.(c) People cannot change their old habits.(d) People have neither civic sense nor sense of privacy.Passage-5In the last two decades, the world’s gross domestic product (GDP) has increased 50 percent, whereas inclusive wealth has increased by a mere 6 percent. In recent decades, GDP-driven economic performance, has only harmed inclusive wealth like human capital; and natural capital like forests, land and water. While the world’s human capital which stands at 57 percent of total inclusive wealth grew by only 8 percent, the natural which is 23 percent of total inclusive wealth declined by 30 per cent worldwide in the last two decades.Qn 5: Which of the following is the most crucial inference from the above passage?(a) More emphasis should be laid on the development of natural capital.(b) The growth driven by GDP only is neither desirable nor sustainable.(c) The economic performance of the countries of the world is not satisfactory.(d) The world needs more human capital under the present circumstances.Passage-6By 2020, when the global economy is expected to run short of 56 million young people, India, with its youth surplus of 47 million, could fill the gap. It is in this context that labour reforms are often cited as the way to unlock double-digit growth in India. In 2014, India’s labour force was estimated to be about 40 per cent of the population, but 93 per cent of this force was in unorganized sector. Over the last decade, the compound annual growth rate (CAGR) of employment has slowed to 0.5 per cent, with about 14 million jobs created during last year when the labour force increased by about 15 million.Qn 6: Which of the following is the most rational inference from the above passage?(a) India must control its population growth so as to reduce its unemployment rate.(b) Labour reforms are required in India to make optimum use of its vast labour force productively(c) India is poised to achieve the double-digit growth very soon(d) India is capable of supplying skilled young people to oil countries.Passage-7The very first lesson that should be taught to us when are old enough to understand it, is that complete freedom from the obligation to work is unnatural, and ought to be illegal, as we can escape our share of the burden of work only by throwing it on someone else’s shoulders. Nature ordains that the human race shall perish of famine if it stops working. We cannot escape from this tyranny. The question we have to settle is how much leisure we can afford to allow ourselves.Qn 7: The main idea of the passage is that(a) it is essential for human beings to work(b) there should be a balance between work and leisure(c) working is a tyranny which we to face(d) human’s understanding of the nature of work is essentialPassage-8There is no harm in cultivating habits so long as they are not injurious. Indeed, most of us are little more than bundle of habits. Take away our habits and the residuum would hardly be worth bothering about. We could not get on without them. They simplify the mechanism of life. They enable us to do a multitude of things automatically, which, if we had to give fresh and original thought to them each time, would make existence an impossible confusion.Qn 8: The author suggests that habits(a) tend to make our lives difficult(b) add precision to our lives(c) make it easier for us to live(d) tend to mechanize our livesPassage-9We have hard work ahead. There is no resting for any of us till we redeem our pledge in full fill we make all the people of India what destiny intends them to be. We are citizens of a great country, on the verge of bold advance, and we have to live up to that high standard. All of us, to whatever religion we may belong, are equally the children of India with, equal rights, privileges and obligations. We cannot encourage communalism or narrow-mindedness, for no nation can be great whose people are narrow in thought or action.Qn 9: The challenge the author of the above passage throws to the public is to achieve(a) a high standard of living, progress and privileges(b) equal privileges, fulfilment of destiny and political tolerance(c) spirit of adventure and economic parity(d) hard work, brotherhood out national unityPassage-10“The individual, according to Rousseau, puts his person and all his power in common under the supreme direction of the General Will and in our corporate capacity we receive each member as an indivisible part of the whole.”Qn 10: In the light of the above passage, the nature of General Will is best described as(a) the sum total of the private wills of the individuals(b) what is articulated by the elected representatives of the individuals(c) the collective good as distinct from private wills of the individuals(d) the material interests of the communityPassage-11In a democratic State, where a high degree of Political maturity of the people obtains, the conflict between the will of the sovereign law-making body and the organized will of the people seldom occurs.Qn 11: What does the above passage imply?(a) In a democracy, force is the main phenomenon in the actual exercise of sovereignty.(b) In a mature democracy, force to a great extent is the main phenomenon in the actual exercise of sovereignty.(c) In a mature democracy, use of force is irrelevant in the actual exercise of sovereignty.(d) In a mature democracy, force is narrowed down to a marginal phenomenon in the actual exercise of sovereignty.Passage-12A successful democracy depends upon widespread interest and participation in politics, in which voting is an essential part. To deliberately refrain from taking such an interest, and from voting, is a kind of implied anarchy, it is to refuse one’s political responsibility while enjoying the benefits of a free political society.Qn 12: This passage relates to(a) duty to vote(b) right to vote(c) freedom to vote(d) right to participate in politicsPassage-13In a free country, the man who signNowes the position of leader is usually one of outstanding, character and ability. Moreover, it is usually possible to foresee that he will signNow such a position, since early in life one can see his qualities of character. But this is not always true in the case of a dictator; often he signNowes his position of power through chance, very often through the unhappy state of his country.Qn 13: The passage seems to suggest that(a) a leader foresees his future position(b) a leader is chosen only by a free country(c) a leader must see that his country is free from despair(d) despair in a country sometimes leads to dictatorshipPassage-14The greatest blessing that technological progress has in store for mankind is not, of course, an accumulation of material possessions. The amount of these that can be effectively enjoyed by one individual in one lifetime is not great. But there is not the same narrow limit to the possibilities of the enjoyment of leisure. The gift of leisure may be abused by people who have had no experience of making use of it. Yet the creative use of leisure by a minority in societies has been the mainspring of all human progress beyond the primitive level.Qn 14: With reference to the above passage, the following assumptions have been made:1) People always see the leisure time as a gift and use it for acquiring more material possessions.2) Use of leisure by some people to produce new and original things has been the chief source of human progress.Which of these assumptions is/are valid?(a) 1 only(b) 2 only(c) Both 1 and 2(d) Neither 1 nor 2Passage-15There is more than a modicum of truth in the assertion that “a working knowledge of ancient history is necessary to the intelligent interpretation of current events”. But the sage who uttered these words of wisdom might well have added something on the benefits of studying particularly the famous battles of history for the lessons they contain for those of us who lead or aspire to leadership. Such a study will reveal certain qualities and attributes which enabled the winners to win—and certain deficiencies which caused the losers to lose and the student will see that the same pattern recurs consistently, again and again, throughout the centuries.Qn 15: With reference to the above passage, the following assumptions have been made:1) A study of the famous battles in history would help us understand the modern warfare.2) Studying the history is essential fin anyone who aspires to be a leader.Which of these assumptions is/are valid?(a) 1 only(b) 2 only(c) Both 1 and 2(d) Neither 1 nor 2Passage – 16Disruption of traditional institutions, identifications and loyalties is likely to lead to ambivalent situations. It is possible that some people may renew their identification with traditional groups whereas others align themselves with new groups and symbols emergent from processes of political development. In addition, political development tends to foster group awareness of a variety of class, tribe, region, clan, language, religion, occupation and others.Qn 16: Which one of the following is the best explanation of the above passage?(a) Political development is not a unilinear process for it involves both growth and decay.(b) Traditional societies succeed in resisting positive aspects of political development.(c) It is impossible for traditional societies to break away from lingering loyalties.(d) Sustenance of traditional loyalties is conducive to political development.Passage-17There has been a signNow trend worldwide towards regionalism in government, resulting in a widespread transfer of powers downwards towards regions and communities since 1990s. This process, which involves the creation of new political entities and bodies at a sub-national level and an increase in their content and powers, is known as devolution. Devolution has been characterized as being made up of three factors—political legitimacy, decentralization of authority and decentralization of resources. Political legitimacy here means a mass demand from below for the decentralization process, which is able to create a political force for it to take place. In many cases, decentralization is initiated by the upper tier of government without sufficient political mobilization for it at the grassroots level, and in such cases the decentralization process often does not fulfil its objectives.Qn 17: Which among the following is the most logical, rational and critical inference that can be made from the above passage?(a) Emergence of powerful mass leaders is essential to create sub-national political entities and thus ensure successful devolution and decentralization.(b) The upper tier of government should impose devolution and decentralization on the regional communities by law or otherwise.(c) Devolution, to be successful, requires a democracy in which there is free expression of the will of the people at lower level and their active participation at the grassroots level.(d) For devolution to take place, a strong feeling of regionalism in the masses is essential.Passage-18We live in digital times. The digital is not just something we use strategically and specifically to do a few tasks. Our very perception of who we are, how we connect to the world around us, and the ways in which we define our domains of life, labour and language are hugely structured by the digital technologies. The digital is everywhere and; like air, invisible. We live within digital systems, we live with intimate gadgets, we interact through digital media, and the very presence and imagination of the digital has dramatically restructured our lives. The digital, far from being a tool, is a condition and context that defines the shapes and boundaries of our understanding of the self, the society, and the structure of governance.Qn 18: Which among the following is the most logical and essential message conveyed by the above passage?(a) All problems of governance can be solved by using digital technologies.(b) Speaking of digital technologies is speaking of our life and living.(c) Our creativity and imagination cannot be expressed without digital media.(d) Use of digital systems is imperative for the existence of mankind in future.Passage – 19The IMF has pointed out that the fast growing economies of Asia face the risk of falling into ‘middle-income trap’. It means that average incomes in these countries, which till now have been growing rapidly, will stop growing beyond a point—a point that is well short of incomes in the developed West. The IMF identifies a number of causes of middle-income trap—none of which is surprising—from infrastructure to weak institutions, to leas than favourable macroeconomic conditions. But the broad, overall cause, says IMF, is a collapse in the growth of productivity.Qn 19: Which among the following is the most logical, rational and critical inference that can be made from the above passage?(a) Once a country signNowes middle-income stage, it runs the risk of falling productivity which leads to stagnant incomes.(b) Falling into middle-income trap is a general characteristic of fast growing economies.(c) There is no hope at all for emerging Asian economies to sustain the growth momentum.(d) As regards growth of productivity, the performance of Asian economies is not satisfactory.Passage -20An innovative India will be inclusive as well as technologically advanced, improving the lives of all Indians. Innovation and R&D can mitigate increases in social inequality and relieve the pressures created by rapid urbanization. The growing divergence in productivity between agriculture and knowledge-intensive manufacturing and services threatens to increase income inequality. By encouraging India’s R&D labs and universities to focus on the needs of poor people and by improving the ability of informal firms to absorb knowledge, an innovation and research agenda can counter this effect. Inclusive innovation can lower the cost of goods and services and create income – earning opportunities for the poor people.Qn 20: Which among the following is the most logical and rational assumption that can be made from the above passage?(a) Innovation and R&D is the only way to reduce rural to urban migration.(b) Every rapidly growing country needs to minimize the divergence between productivity in agriculture and other sectors.(c) Inclusive innovation and R&D can help create an egalitarian society.(d) Rapid urbanization takes place only when a country’s economic growth is rapid.Passage-21Climate change is likely to expose a large number of people to increasing environmental risks forcing them to migrate. The international community is yet to recognize this new category of migrants. There is no consensus on the definition and status of climate refugees owing to the distinct meaning the term refugees carry under international laws. There are still gaps in understanding how climate change will work as the root cause of migration. Even if there is recognition of climate refugees, who is going to provide protection? More emphasis has been given to international migration due to climate change. But there is a need to recognize the migration of such people within the countries also so that their problems can be addressed properly.Qn 21: Which of the following is the most rational inference from the above passage?(a) The world will not be able to cope with large scale migration of climate refugees.(b) We must find the ways and means to stop further climate change.(c) Climate change will be the most important reason for the migration of people in the future.(d) Relation between climate change and migration is not yet properly understood.Passage-22Many farmers use synthetic pesticides to kill infesting insects. The consumption of pesticides in some of the developed countries is touching 3000 grams/hectare. Unfortunately, there are reports that these compounds possess inherent toxicities that endanger, the health of the farm operators, consumers and the environment. Synthetic pesticides are generally persistent in environment. Entering in food chain they destroy the microbial diversity and cause ecological imbalance. Their indiscriminate use has resulted in development of resistance among insects to insecticides, upsetting of balance in nature and resurgence of treated populations. Natural pest control using the botanical pesticides is safer to the user and the environment because they break down into harmless compounds within hours or days in the presence of sunlight. Plants with pesticidal properties have been in nature for millions of years without any ill or adverse effects on the ecosystem. They are easily decomposed by many microbes common in most soil. They help in the maintenance of biological diversity, of predators and the reduction of environmental contamination and human health hazards. Botanical pesticides formulated from plants are biodegradable and their use in crop protection is a practical sustainable alternative.Qn 22: On the basis of the above passage, the following assumptions have been made:1) Synthetic pesticides should never be used in modem agriculture.2) One of the aims of sustainable agriculture is to ensure minimal ecological imbalance.3) Botanical pesticides are more effective as compared to synthetic pesticides.Which of the assumptions given above is/are correct?(a) 1 and 2 only(b) 2 only(c) 1 and 3 only(d) 1, 2 and 3Qn 23: Which of the following statements is/are correct regarding biopesticides?1) They are not hazardous to human health.2) They are persistent in environment.3) They are essential to maintain the biodiversity of any ecosystem.Select the correct answer using the code given below.(a) 1 only(b) 1 and 2 only(c) 1 and 3 only(d) 1, 2 and 3Passage-24An air quality index (AQI) is a way to combine measurements of multiple air pollutants into a single number or rating. This index is ideally kept constantly updated and available in different places. The AQI is most useful when lots of pollution data are being gathered and when pollution levels are normally, but not always, low. In such cases, if pollution levels spike for a few days, the public can quickly take preventive action (like staying indoors) in response to an air quality warning. Unfortunately, that is not urban India. Pollution levels in many large Indian cities are so high that they remain well above any health or regulatory standard for large part of the year. If our index stays in the Red/Dangerous’ region day after day, there is not much any one can do, other than getting used to ignoring it.Qn 24: Which among the following is the most logical and rational inference that can be made from the above passage?(a) Our governments are not responsible enough to keep our cities pollution free.(b) There is absolutely no need for air quality indices in our country.(c) Air quality index is not helpful to the residents of many of our large cities.(d) In every city, public awareness about pollution problems should increase.Passage-25Productive jobs are vital for growth and a good lob is the best form of inclusion. More than half of our population depends on agriculture, but the experience of other countries suggests that the number of people dependent on agriculture will have to shrink if per capita incomes in agriculture are to go up substantially. While industry is creating jobs, too many such jobs are low-productivity non-contractual jobs in the unorganized sector, offering low incomes, little protection, and no benefits. Service jobs are relatively of high productivity, but employment growth in services has been slow in recent years.Qn 25: Which among the following is the most logical and rational inference that can be made from the above passage?(a) We must create conditions for the faster growth of highly productive service jobs to ensure employment growth and inclusion.(b) We must shift the farm workers to the highly productive manufacturing and service sectors to ensure the economic growth and inclusion.(c) We must create conditions for the faster growth of productive jobs outside of agriculture even while improving the productivity of agriculture.(d) We must emphasize the cultivation of high-yielding hybrid varieties and genetically modified crops to increase the per capita income in agriculture.Passage-26A Landscape-scale approach to land use can encourage greater biodiversity outside protected areas. During hurricane ‘Mitch’ in 1998, farms using eco agricultural practices suffered 58 percent, 70 percent and 99 percent less damage in Honduras, Nicaragua and Guatemala, respectively, than farms using conventional techniques. In Costa, vegetative windbreaks and fencerows boosted farmers’ income from pasture and coffee while also increasing bird diversity. Bee pollination is more effective when agricultural fields are closer to natural or seminatural habitat, a finding that matters because 87 percent of the world’s 107 leading crops depend on animal pollinators. In Costa Rica, Nicaragua and Colombia silvopastoral systems t tint integrate trees with pastureland are improving the sustainability of cattle production, and diversifying and increasing farmers’ income.Qn 26: Which among the following is the most logical and rational inference that can be made from the above passage?(a) Agricultural practices that enhance biodiversity can often increase farm output and reduce the vulnerability to disasters.(b) All the countries of the world should be encouraged to replace ecoagriculture with conventional agriculture.(c) Ecoagriculture should be permitted in protected areas without destroying the biodiversity there.(d) The yield of food crops will be very high if ecoagricultural practices are adopted to cultivate them.Passage-27The medium term challenge for Indian manufacturing is to move from lower to higher tech sectors, from lower to higher value-added sectors, and from lower to higher productivity sectors. Medium tech industries are primarily capital intensive and resource processing; and high tech industries are mainly capital and technology intensive. In order to push the share of manufacturing in overall GDP to the projected 25 per cent, Indian manufacturing needs to capture the global market in sectors showing a rising trend in demand. These sectors are largely high technology and capital intensive.Qn 27: Which among the following is the most logical and rational inference that can be made from the above passage?(a) India’s GDP displays high value-added and high productivity levels in medium tech and resource processing industries.(b) Promotion of capital and technology intensive manufacturing is not possible in India.(c) India should push up the public investments and encourage the private investments in research and development, technology upgradation and skill development.(d) India has already gained a great share in global markets in sectors showing a rising trend in demand.Passage-28Over the last decade, Indian agriculture has become more robust with record production of food grains and oilseeds. Increased procurement, consequently, has added huge of food grains in the granaries. India is one of the world’s top producers of rice, wheat, milk, fruits and vegetables. India is still home the quarter of all undernourished people in the world. On an average, almost half of the total expenditure of nearly half of the households is on food.Qn 28: Which among the following is the most logical corollary to the above passage?(a) Increasing the efficiency of farm-to-fork value chain is necessary to reduce the poverty and malnutrition.(b) Increasing the agricultural productivity will automatically eliminate the poverty and malnutrition in India.(c) India’s agricultural productivity is already great and it is not necessary to increase it further.(d) Allocation of more funds for social welfare and poverty alleviation programmes will ultimately eliminate the poverty and malnutrition in India.Passage-29The States are like pearls and the Centre is the thread which turns them into a necklace; if the read snaps, the pearls are scattered.Qn 29: Which one of the following views corroborates the above statement?(a) A strong Centre and strong States make the federation strong.(b) A strong Centre is a binding force for national integrity.(c) A strong Centre is a hindrance to State autonomy.(d) State autonomy is a prerequisite for a federation.Passage-30Really I think that the poorest he that is in England has a life to live, as the greatest he, and therefore truly, I think it is clear that every man that is to live under a government ought first by his own consent to put himself under the government, and I do think that the poorest man in England is not at all bound in a strict sense to that government that he has not had a voice to put himself under.Qn 30: The above statement argues for(a) distribution of wealth equally to all(b) rule according to the consent of the governed(c) rule of the poor(d) expropriation of the richQn 31: “Rights are certain advantageous conditions of social well being indispensable to the true development of the citizen.”In the light of this statement, which one of the following is the correct understanding of rights?(a) Rights aim at individual good only.(b) Rights aim at social good only.(c) Rights aim at both individual and social good.(d) Rights aim at individual good devoid of social well-being.Qn 32: Consider the following:Statement:Good voice is a natural gift but one has to keep practising to improve and well in the field of music.Conclusions:Natural gifts need nurturing and care.Even though one’s voice is not good, one can keep practising.Which one of the following is correct, in respect of the above statement and conclusions?(a) Only conclusion I follows from the statement.(b) Only conclusion II follows from the statement.(c) Either conclusion I or conclusion II follows from the statement.(d) Neither conclusion I nor conclusion II follows from the statement.