taxation

Definition

Means by which governments finance their expenditure by imposing charges on citizens and corporate entities. Although, principally, taxation should be neutral in its effects on the different sectors of an economy, governments use it to encourage or discourage certain economic decisions. For example, reduction in taxable personal (or household) income by the amount paid as interest on home mortgage loans results in greater construction activity, and generates more jobs. See also taxation principles.


taxation is...

... in the Economics, Politics, & Society subject.

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