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tax

a levy imposed by the government on GOODS and SERVICES (INDIRECT TAX) and the INCOME and WEALTH of persons and businesses (DIRECT TAX). The government uses taxes for a number of purposes such as:
  1. to raise revenue to finance government spending (see BUDGET);
  2. to promote social equity by redistributing income and wealth (see DISTRIBUTION OF INCOME);
  3. to regulate the level of total spending in the economy (see FISCAL POLICY);
  4. to protect domestic producers from imports (see TARIFF). See INCOME TAX, CORPORATION TAX, CAPITAL GAINS TAX, WEALTH TAX, INHERITANCE TAX, VALUE-ADDED TAX, CUSTOMS DUTY, EXCISE DUTY.

tax

a levy imposed by the government on the income, wealth and capital gains of persons and businesses (DIRECT TAX), on spending on goods and services (INDIRECT TAX), and on properties. In the UK, taxes on income include personal INCOME TAX and CORPORATION TAX; ‘inheritance tax’ is used to tax wealth (see WEALTH TAX) and CAPITAL GAINS TAX is used to tax ‘windfall’ profits; taxes on spending include VALUE-ADDED TAX, EXCISE DUTY and TARIFFS; taxes on properties include the council tax (see LOCAL TAX) and the UNIFORM BUSINESS RATE. Such taxes are used to raise revenue for the government and as a means of controlling the level and distribution of spending in the economy. See TAXATION, PUBLIC FINANCE.
References in periodicals archive ?
the Joint Committee on Taxation) and others (including this column's authors) pointed out that the rules on accounting for income taxes left room for managers to manage earnings through the tax provision without detailed disclosure.
Mark Warner of Virginia formed a bipartisan coalition to raise taxes and left office in 2005 as one of the most popular governors in state history.
Howe Institute, (11) have shown a strong link between the elimination of withholding taxes on dividends and interest and increased foreign direct investment.
123(R), a company's book expense on an option exercise is greater than the tax deduction, the difference, adjusted for taxes, is applied against the existing APIC pool.
When the Gordons filled out both 2002 returns, their income under the AMT was $27,000 higher than their regular income tax after they added back state and local taxes and a $10,000 capital gain.
Congress recommending that "the United States should show leadership by enacting, in concert with the international community, transaction taxes on short-term, cross-border foreign exchange transactions to deter speculation.
True, none of these facts would be an issue today if income had risen just as rapidly as taxes.
So he proposed that employers deduct estimated taxes from workers' paychecks.
But sometimes the government goes overboard, they say, such as when it taxes state or local tax refunds.
For example, is a tenant required to pay additional rent based upon increase in real estate taxes if the landlord itself is exempt from the payment of those taxes?