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Tax

Public finance

This article is part of the series:
Finance and Taxation

Taxation
Income tax · Payroll tax
CGT · Stamp duty · LVT
Sales tax · VAT · Flat tax
Tax, tariff and trade
Tax haven
Tax incidence
Tax rate · Proportional tax
Progressive tax · Regressive tax
Tax advantage · Fixed tax
Taxation by country

Tax rates around the world
Tax revenue as % of GDP

Economic policy
Monetary policy
Central bank • Money supply
Gold standard
Fiscal policy
Spending • Deficit • Debt
Policy-mix
Trade policy
Balance of trade
Tariff • Trade agreement
Finance
Financial market
Financial market participants
Corporate · Personal
Public · Regulation
Banking
Fractional-reserve · Full-reserve
Free banking · Islamic banking
Deposit insurance
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To tax {from the latin taxare: to estimate, which in turn is from tangere: to touch } is to impose a financial charge or other levy on an individual or a legal entity by a state or a functional equivalent of a state (for example, secessionist movements or revolutionary movements). Taxes are also imposed by many subnational entities. Taxes consist of direct tax or indirect tax, and may be paid in money or as its labour equivalent (often but not always unpaid). A tax may be defined as a "pecuniary burden laid upon individuals or property to support the government […] a payment exacted by legislative authority."[1] A tax "is not a voluntary payment or donation, but an enforced contribution, exacted pursuant to legislative authority" and is "any contribution imposed by government […] whether under the name of toll, tribute, tallage, gabel, impost, duty, custom, excise, subsidy, aid, supply, or other name."[1]

In modern taxation systems, taxes are levied in money, but in-kind and corvée taxation are characteristic of traditional or pre-capitalist states and their functional equivalents. The method of taxation and the government expenditure of taxes raised is often highly debated in politics and economics. Tax collection is performed by a government agency such as Canada Revenue Agency, the Internal Revenue Service (IRS) in the United States, or Her Majesty's Revenue and Customs (HMRC) in the UK. When taxes are not fully paid, civil penalties (such as fines or forfeiture) or criminal penalties (such as incarceration)[2] may be imposed on the non-paying entity or individual.

 

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