Taxation policy refers to the principles and guidelines set by the government regarding how taxes are levied and collected from individuals and businesses. It includes decisions on tax rates, deductions, exemptions, and the overall structure of the tax system.
Related terms
Progressive Taxation: Progressive taxation is a tax system where people with higher incomes pay a higher percentage of their income in taxes compared to those with lower incomes.
Regressive Taxation: Regressive taxation is a tax system where people with lower incomes pay a higher percentage of their income in taxes compared to those with higher incomes.
Flat Tax: A flat tax is a tax system where everyone pays the same percentage of their income in taxes, regardless of their income level.