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] The recorded history of taxation goes back nearly as long as recorded history itself - Sumerian clay tablets found in the ruins of the city of Lagash from the 3rd millennium BC tell of a revolt over a heavy tax imposition. [2]

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". Corvée labor is a tax "paid" directly in labor.

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.


References

  1. Encyclopedia Britannica article on Taxation
  2. Beware the ides of April by Charles Adams

Additional Reading