Definition - What does Tax mean?

Tax refers to a charge by the government on the value of the property, transactions, income, profit, and certain licenses. Taxes may include property tax, income tax, sales tax, taxes on certain gifts, etc. These taxes are collected on a federal, state, county, or city level.

Justipedia explains Tax

Taxes are important for the functioning of the government and sectors associated with it like public healthcare and education. Different countries and even different states can have different tax laws. For example, citizens in UK might pay up to 40% income tax while people in India pay only 30%. In some states in the US, there is no sales tax on certain purchases. In other states, there is a sales tax on all purchases.

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