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Explicit Tax

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Explicit tax
A tax specifically collected by a government; includes income, withholding, property, sales, and value-added taxes and tariffs.

Explicit Tax
A tax levied and collected by a government. Examples include income tax, value added tax, sales tax, estate tax, and so forth. This compares to hidden regulatory fees, which add to the cost of doing business without necessarily adding to government revenue. For example, some argue for a carbon tax that would, theoretically, increase government revenue by taxing the emission of carbon dioxide. This compares to a proposed cap-and-trade system, which requires carbon emitters to buy permission to emit without changing how they are actually taxed.


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The terms "implicit tax" and "tax capitalization" are used to denote price changes that occur as the market takes explicit tax rates into account.
The implicit tax on labor income in an income tax, therefore, will be relatively higher for high wage classes, which means that the explicit tax rate on labor income will be correspondingly higher for these classes.
Explicit Tax Concept: Can George deduct the amount he repays to his former employer?
 
 
 
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