No Taxation Powers
Definition
When an entity lacks taxation powers it means they do not have the ability to impose taxes on citizens or businesses within its jurisdiction.
Analogy
Picture going into your favorite store and they can't charge you any sales tax on your purchases. They might have great products (like public services), but without the ability to collect taxes, it's hard for them to maintain or improve those products.
Related terms
Revenue: The income that a government collects from taxes or other sources.
Tariffs: Taxes imposed on imported goods and services.
Excise Tax: A tax charged on certain goods and services produced or sold within a country.
"No Taxation Powers" appears in:
Resources
© 2024 Fiveable Inc. All rights reserved.
AP® and SAT® are trademarks registered by the College Board, which is not affiliated with, and does not endorse this website.