Taxation
Definition
Taxation refers to the process of levying and collecting taxes from individuals and businesses by the government in order to fund public expenditures and services.
Analogy
Think of taxation as a toll booth on a highway. Just like you have to pay a fee to use the road, individuals and businesses have to pay taxes to support government activities.
Related terms
Progressive Tax: A progressive tax is a type of tax where the tax rate increases as income or wealth increases.
Regressive Tax: A regressive tax is a type of tax where the tax rate decreases as income or wealth increases.
Marginal Tax Rate: The marginal tax rate is the percentage of additional income that is paid in taxes. It represents how much extra you have to give up when you earn more money.
"Taxation" appears in:
Subjects (1)
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