Punitive Tax

Punitive Tax

1. A tax imposed to discourage a behavior. For example, retirement plans usually have excise taxes placed upon them if one makes a withdrawal prior to a certain age.

2. An extraordinarily high tax. For example, a government theoretically could impose a tax of 99% on all income over $20,000. There is no consensus as to what qualifies as a punitive tax.
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2003: The US withdraws a punitive tax on imported steel to avoid a trade war with Europe.
The Greek government is expected to exempt imports from European Union countries from a 26 per cent punitive tax on fictitious imports of goods and services, officials from two business groups said.
The punitive tax has also pushed up rent arrears by PS24million because tenants cannot afford their lodgings.
He said without tangible evidence, government had no choice but to simply impose the punitive tax.
Punitive tax increases on investment and small businesses, coupled with increased government spending, are no way to unleash economic growth.
Mr Lavery said: "The failure of Liberal Democrat MPs to support Labour calls for this punitive tax to be axed is yet another betrayal of ordinary people who have been caught between a rock and a hard place by this nasty piece of legislation that is causing untold misery across the country.
Removing Scottish APD would see passengers rushing across the border to avoid paying the punitive tax at Newcastle, Manchester or any other English airport,' said Willie Walsh, the chief executive of IAG.
Instead he wants to hurry through a punitive anti-inversion law to counterbalance the effects of our already punitive tax rates.
SIR - Last week the TaxPayers' Alliance launched the "Stamp Out stamp duty" campaign throughout the UK and will be approaching Welsh taxpayers to inform them about what this punitive tax means for young people trying to get onto the housing ladder, hardworking families, growing families and Welsh jobs.
The Swiss Bankers Association (SBA) said on Friday that many UK clients had chosen to come clean to the tax authorities and pay the taxes due on their accounts, rather than making a one-off punitive tax payment that allows them to stay anonymous.
Inheritance tax is undoubtedly a punitive tax, yet it is commonly referred to as a voluntary tax as it can be legitimately avoided with judicious financial planning.
The demo will highlight how hardpressed families have borne the brunt of the Tory Chancellor's failed economic policies, from punitive tax rises and benefit caps to the closure of local services.