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Implicit Tax
(redirected from Implicit Taxes)

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Implicit tax
Lower or higher before-tax required returns on assets that are subject to lower or higher tax rates.

Implicit Tax
The cost of an activity that is not collected by the government but may be the result of government policy. For example, if the government is encouraging economic growth and accepting a high inflation rate, one may consider this an implicit tax on personal savings because inflation renders them worth less over time. An implicit tax should not be confused with an indirect tax, which is a different concept altogether. See also: Explict tax.


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We are increasingly mired down with even larger government deficits, higher implicit taxes through the loans we are racking up, the nationalization of health-care insurance, not to mention the auto industry, student loans, etc.
True, all businesses operated by expatriates have to pay implicit taxes by getting sponsored by nationals as silent partners, which in effect is a type of socio-economic subsidy.
 
 
 
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