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 ?
If the parents plan to postpone a sale until 2008 when the child's capital gain rate could be zero, they have to make sure that he or she reaches 18 by then; otherwise, the gain will still be taxed at the parents' (presumably higher) rate (see CCH, Tax Increase Prevention and Reconciliation Act of 2005: Law and Explanation, [paragraph] 210).
Prior to the tax law change, dividend income was taxed as ordinary income, which could have been as high as 38.6 percent.
Or you treat it like municipal bonds, whereby there is no deduction for saving, but the interest isn't taxed. The individual side of the Armey flat tax proposal works more or less the way we treat municipal bonds.
The importance of this distinction gets at what I believe is the major problem with our current tax system, which is that some forms of income are taxed two, three, or more times while others are not taxed at all.
However, resident aliens who hold green cards for 8 of the 15 prior years generally are taxed at departure identically to citizens who relinquish their citizenship.
* The ability to do "what-if" scenario planning, to see how specific transactions would be taxed for better tax planning and cash management.
Similarly, property taxes improve the accuracy with which the wealth of senior citizens -- whose assets tend to dramatically outweigh their cash incomes -- can be taxed. Without property taxes, many seniors would only be taxed on their fixed incomes -- which often grossly underestimate how well-to-do they actually are.
Payments to capital and labor are taxed progressively at the individual level.
Adjusted gross income (AGI) over $115,000 for single taxpayers or $140,000 for married taxpayers is taxed at 36%.
More importantly, the Treaty provides Opportunities for proactive estate planning--for example, converting foreign investments to assets exempt from tax under the Treaty or Code (e.g., bank accounts), or selling assets that would be taxed unfavorably at death.
State Tax Comm'n, (2) this Court held a New York transfer tax that more heavily taxed stock transfers if they occurred outside the state to violate the Commerce Clause.