Hidden Tax

A tax that is built in to the price of a good or service that the buyer does not see. That is, rather than being added at the end of a transaction, like a sales tax, hidden taxes are included in the price. Examples of hidden taxes include corporate taxes, which can cause companies to raise their prices so as not to reduce profit, and VAT, in which taxes are added at every stage of production. See also: Inflation tax.

hidden tax

an INDIRECT TAX that is incorporated into the PRICE of a good or service, but the consumer is not made fully aware of its existence or magnitude; for example, the amount of EXCISE DUTY included in the price of cigarettes and beer is not normally made known to the consumer. VALUE-ADDED TAX, by contrast, is incorporated into the price of a product at specified rates.

Collins Dictionary of Economics, 4th ed. © C. Pass, B. Lowes, L. Davies 2005

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stealth tax

References in periodicals archive

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"Withholding is the ultimate hidden tax. When taxpayers no longer see the money that is withheld from their paychecks, the cost of government becomes obscured.

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Because consumers ultimately pay a slightly higher price for the taxed good, a VAT is essentially a hidden tax. Some of the tax might be absorbed by producers, but in the end, we can expect goods and services to be 8 to 10 percent higher than they are now.

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A LINX spokesman claimed that the cost of implementing the legislation would amount to "a hidden tax on Internet users who will be obliged to pay for the costs of government snooping".

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I refer to the hidden tax of regulation, which is thus also off-budget.

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This would rescind the 27 percent levies on Canadian lumber and end the hidden tax imposed on American home buyers and renters," said Bobby Rayburn, president of NAHB.

Lumber price drop?

"This would rescind the 27% levies on Canadian lumber and end the hidden tax imposed on American home buyers and renters," NAHB President Bobby Rayburn said in the statement.

U.S. to drop Canadian lumber tariffs

We all know there is little chance of that happening, which is why the legislators are trying to raise more money in a relatively hidden tax.

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"These proposals are a hidden tax on Michigan's working families and small businesses."

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Whether the project is a quick-service restaurant, automobile service center or a retail shop, construction cost segregation can find hidden tax savings opportunities.

Cost segregation: a money-saving oppportunity: how can a parking lot help a company save money on taxes? When is carpeting considered personal property? What is the difference between electrical systems serving the building and electrical systems serving kitchen equipment?