Taxes

Definition

Taxes are mandatory payments imposed by the government on individuals and businesses to fund public goods and services. They can be levied on income, sales, property, or other economic activities.

Related terms

Tax incidence: This term refers to the distribution of tax burden between buyers and sellers in a market.

Progressive tax: A progressive tax is a type of tax where the average tax rate increases as income increases.

Regressive tax: A regressive tax is a type of tax where the average tax rate decreases as income increases.