Web Definition: Taxes
A tax is an involuntary fee paid by individuals or businesses to a government. Taxes may be paid in cash or kind. The means of taxation & the uses to which the funds raised through taxation should be put, are a matter of hot dispute in politics & economics, so discussions of taxation are frequently tendentious. The field of economics that deals with taxation is public finance. to support the operation of that government itself;. to influence the macroeconomic performance of the economy ;. to carry out the functions of the government, such as national defense & providing government services. to redistribute resources between individuals or classes in the population. Historically, the nobility were supported by taxes on the poor; modern social security systems are intended to support the widowed, disabled or retired by taxes on those who are still working. to modify patterns of consumption or employment within an economy, by making some classes of transaction more or less attractive.
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