IV. Tax

___(1) West Germany funds ___(2) large share of its social welfare outlays, as it did in Bismarck’s time, through ___(3) regressive payroll taxes. Like ___(4) Sweden, it uses ___(5) tax incentives to lower certain burdens on ___(6) wealthy. ___(7) capital gains on ___(8) stocks and bonds, subject to ___(9) tax of up to 33 percent in ___(10) United States, are exempt in ___(11) West Germany - as well as ___(12) Netherlands, ___(13) Belgium, and ___(14) Japan. (But ___(15) United States, virtually alone among ___(16) Western nations, leaves gains from ___(17) sale of one’s home, in most cases, untouched.) In ___(18) France, one of ___(19) most heavily taxed nations in ___(20) Europe, ___(21) successive governments after ___(22) World War II clung to ___(23) tradition of ___(24) indirect taxation. ___(25) France adopted ___(26) value added tax (VAT), ___(27) consumption tax on goods and services, in 1954.

V.

There are ___(1) several sources of ___ (2) funds. One source is ____ (3) commercial bank such as ___ (4) Citibank, Chase, Chemical and ___ (5) others. Any money you get from such ___ (6) source would be borrowed and only on ___ (7) short-term basis ___ (8) bank would become ___ (9) creditor of yours, not ___ (10) owner. Another possibility is ___ (11) venture capital firm, whose sole purpose is to invest in ___ (12) young, promising companies. To secure ___ (13) funds from such ___(14) firm, you would have to prepare ___ (15) convincing business plan for ___ (16) expected operation, showing ___ (17) return you expect on ___ (18) investment and how you intend to make it. Among ___ (19) other requirements, ___ (20) venture capital firm will expect you to incorporate. What does ___ (21) venture capitalist get out of ___ (22) investing in your company? ___ (23) sizable percentage of ____ (24) ownership.

___(25) third source of ___(26) funds is ___(27) investment banker, who can help you raise ___(28) money through ___(29) sale of ____(30) securities, only if ___(31) company is incorporated.