tax

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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 ?
Since opening the childcare service, through which parents apply for 30 hours free childcare and Tax-Free Childcare, more than 325,000 customers have successfully applied and are now using the service.
The reorganization is expected to be tax-free and is anticipated to be completed in 2Q15.
Strategy #3: Finally, direct any dollars above the 401(k) match to the tax-free Roth IRA.
The Video provides a solution and viewers will conclude it is a no brainer to switch to a Tax-Free Retirement Plan.
Based on this finding, the court ruled the exchange was tax-free under section 1031.
However, given that the binding contract rule would likely apply, the transaction will qualify as a tax-free reorganization, because the COI requirement will be met.
Pelosi is willing to take tax-free health insurance while millions of uninsured Latinos and other workers suffer without the tax-free benefit she receives.
While the accommodation itself should classify as tax-free provided the conditions are met, the associated expenses such as light and heat, council tax and landline telephone bills do not generally qualify as tax-free expenses.
Ernie is set to hand out even more tax-free cash prizes.
President Bush's proposals for new tax-free savings accounts might look like more bad news for the variable-annuity industry, but industry consultants, players and observers said that's not necessarily the case.
The tax-free reorganization provision in Code Section 368 makes it possible for corporations to engage in merge[acute{r}]s, acquisitions, consolidations, spin-offs and recapitalizations without gain recognition.
In order to permit a tax-efficient separation or division of one line of business assets from another, section 355 of the Internal Revenue Code accords tax-free treatment to certain distributions by one corporation (the distributing corporation) to its shareholders of the stock or securities in another corporation (the controlled corporation).