Unit2

02-A. Taxes, Taxes, and More Taxes<?xml:namespace prefix = o ns = "urn:schemas-microsoft-com:office:office" />

Americans often say that there are only two things a person can be sure of in life: death and taxes, Americans do not have a corner on the "death" market, but many people feel that the United States leads the world with the worst taxes.

Taxes consist of the money which people pay to support their government. There are generally three levels of government in the <?xml:namespace prefix = st1 ns = "urn:schemas-microsoft-com:office:smarttags" /><country-region w:st="on"><place w:st="on">United States</place></country-region>: federal, state, and city; therefore, there are three types of taxes.

Salaried people who earn more than a few thousand dollars must pay a certain percentage of their salaries to the federal government. The percentage varies from person to person. It depends on their salaries. The federal government has a graduated income tax, that is, the percentage of the tax (14 to 70 percent) increases as a person's income increases. With the high cost of taxes, people are not very happy on April 15, when the federal taxes are due.

The second tax is for the state government: <city w:st="on">New York</city>, <state w:st="on">California</state>, <state w:st="on"><place w:st="on">North Dakota</place></state>, or any of the other forty-seven states. Some states have an income tax similar to that of the federal government. Of course, the percentage for the state tax is lower. Other states have a sales tax, which is a percentage charged to any item which you buy in that state. For example, a person might want to buy a packet of cigarettes for twenty-five cents. If there is a sales tax of eight percent in that state, then the cost of the cigarettes is twenty-seven cents. This figure includes the sales tax. Some states use income tax in addition to sales tax to raise their revenues. The state tax laws are diverse and confusing.

The third tax is for the city. This tax comes in two forms: property tax (people who own a home have to pay taxes on it) and excise tax, which is charged on cars in a city. The cities use these funds for education, police and fire departments, public works and municipal buildings.

Since Americans pay such high taxes, they often feel that they are working one day each week just to pay their taxes. People always complain about taxes. They often protest that the government uses their tax dollars in the wrong way. They say that it spends too much on useless and impractical programs. Although Americans have different views on many issues, they tend to agree on one subject: taxes are too high.

02-B. Advertising

Advertising is only part of the total sales effort, but it is the part that attracts the most attention. This is natural enough because advertising is designed for just that purpose. In newspapers, in magazines, in the mail, on radio and television, we constantly see and hear the messages for hundreds of different products and services. For the most part, they are the kinds of things that we can be persuaded to buy – food and drinks, cars and television sets, furniture and clothing, travel and leisure time activities.

The simplest kind of advertising is the classified ad. Every day the newspapers carry a few pages of these ads; in the large Sunday editions there may be several sections of them. A classified ad is usually only a few lines long. It is really a notice or announcement that something is available.

Newspapers also carry a large amount of display advertising. Most of it is for stores or for various forms of entertainment. Newspapers generally reach an audience only in a limited area. To bring their message to a larger audience, many who want to put out their ads use national magazines. Many of the techniques of modern advertising were developed in magazine ads. The use of bright colors, attractive pictures, and short messages is all characteristic of magazine ads. The most important purpose is to catch the eye. The message itself is usually short, often no more than a slogan which the public identifies with the product.

The same techniques have been carried over into television advertising. Voices and music have been added to color and pictures to catch the ear as well as the eye. Television ads are short –usually only 15,30, or 60 seconds, but they are repeated over and over again so that the audience sees and hears them many times. Commercial television has mixed entertainment and advertising. If you want the entertainment, you have to put up with the advertising-and millions of people want the entertainment.

The men and women in the sales department are responsible for the company’s advertising, They must decide on the audience they want to reach. They must also decide on the best way to get their message to their particular audience. They also make an estimate of the costs before management approves the plan. In most large companies management is directly involved in planning the advertising.