Taxation

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Taxation is the imposition of a transfer of money to the government. Almost every country in the world levies taxes, which are used to finance the running of the government. [1]

Taxes can also be used for other purposes than raising money. Taxes are sometimes used to discourage certain activities. They are also sometimes used to transfer wealth from one group to another, usually to try to "even things out".

The imposition of a tax generally causes a change in the behavior of people, both those subject to the tax directly and others not directly subject to the tax. The consequences can be intended or unintended.

  1. Encyclopedia Britannica article on Taxation