taxation

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taxation

the government receipts from TAXES on personal and business income, expenditure and wealth. Taxes on income include personal INCOME TAX and CORPORATION TAX; taxes on expenditure include VALUE-ADDED TAX and EXCISE DUTIES. Taxes are used to finance government spending and as instruments of FISCAL POLICY in regulating the level of total spending in the economy. See INLAND REVENUE, BUDGET (GOVERNMENT).

taxation

government receipts from the imposition of TAXES on persons’ and businesses’ income, spending, wealth and capital gains, and on properties. Taxes are used by the government for a variety of purposes, including:
  1. to raise revenue for the government to cover its own expenditure on the provision of social goods such as schools, hospitals, roads, etc., and social security payments made to individuals in respect of unemployment, sickness, etc. (see BUDGET, GOVERNMENT EXPENDITURE);
  2. as an instrument of FISCAL POLICY in regulating the level of total spending (AGGREGATE DEMAND) in the economy (see DEMAND MANAGEMENT);
  3. to alter the distribution of income and wealth (see PRINCIPLES OF TAXATION, REDISTRIBUTION OF INCOME);
  4. to control the volume of imports into the country (see BALANCE OF PAYMENTS EQUILIBRIUM).

Taxation takes two main forms:

  1. taxes on income received by individuals and businesses (referred to as DIRECT TAXESINCOME TAX, NATIONAL INSURANCE CONTRIBUTION, WEALTH TAX, CAPITAL GAINS TAX and CORPORATION TAX);
  2. taxes on expenditure by individuals and businesses (referred to as INDIRECT TAXES - SALES TAX, VALUE-ADDED TAX, EXCISE DUTY and TARIFF). In national income analysis, taxation is a WITHDRAWAL from the CIRCULAR FLOW OF NATIONAL INCOME. See PUBLIC FINANCE, INLAND REVENUE.
References in periodicals archive ?
One reason politicians turn to sin taxes is that they often face less public opposition than other kinds of taxes.
By integrating a more detailed financial education into the high school curricula, either in existing classes or by creating new ones, students will be better equipped to understand how to maintain a personal budget, manage debt, and realize the mechanics and implications of collection and uses of various kinds of taxes.
The cost of living is already rising fast and the Government has added to it with stealth taxes on cars and alcohol, when we believe that these kinds of taxes should be offset with tax reductions elsewhere," he said.
But while cutting taxes on companies, they are raising taxes on consumers--higher health premiums, higher pension premiums, liquor taxes, tobacco taxes, all kinds of taxes.
The distinction between a direct income tax and a franchise tax measured by income may be significant in this connection; in general, however, most states include both kinds of taxes in the statutory, state tax add-back.
Two major industrial zones were established during the last one-decade where the industries were exempted from all, kinds of taxes and duties.
The study stated that allowing global netting across different kinds of taxes would be difficult to administer and require significant additional resources.