Taxation
Definition
Taxation refers to the process by which a government collects money from individuals and businesses within its jurisdiction to fund public services and projects.
Analogy
Imagine taxation as paying for admission tickets to a concert. Just like concert tickets help cover expenses for organizing an event, taxes help cover expenses for running a country and providing essential services like education, defense, and infrastructure.
Related terms
Revenue: The total amount of money collected through taxes by a government during a specific period.
Progressive Tax System: A tax system where higher-income individuals pay a greater percentage of their income as tax compared to lower-income individuals.
Tax Incentives: Special deductions or exemptions provided by governments to encourage certain behaviors or investments, such as tax breaks for renewable energy initiatives.
"Taxation" appears in:
Subjects (1)
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