Tax

Total revenue from direct and indirect taxes given as share of GDP in 2017

Pieter Brueghel the Younger, The tax collector's office, 1640

Substitution effect and income effect with a taxation on y good.

Budget's constraint shift after an introduction of a lump sum tax or a general tax on consumption or a proportional income tax.

The Laffer curve. In this case, the critical point is at a tax rate of 70%. Revenue increases until this peak, then it starts decreasing.

General government revenue, in % of GDP, from social contributions. For this data, the variance of GDP per capita with purchasing power parity (PPP) is explained in 20% by social contributions revenue.

Egyptian peasants seized for non-payment of taxes. (Pyramid Age)

Public finance revenue from taxes in % of GDP. For this data, the variance of GDP per capita with purchasing power parity (PPP) is explained in 32% by tax revenue.

Diagram illustrating deadweight costs of taxes

Compulsory financial charge or some other type of levy imposed on a taxpayer by a governmental organization in order to fund government spending and various public expenditures (regional, local, or national), and tax compliance refers to policy actions and individual behaviour aimed at ensuring that taxpayers are paying the right amount of tax at the right time and securing the correct tax allowances and tax reliefs.

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Average tax rates by income groups in France, the United Kingdom, and the United States, 1970 (left) and 2005 (right). Taxes were more progressive in 1970 than in 2005.

Progressive tax

A caricature of William Pitt the Younger collecting the newly introduced income tax.

German marginal and average income tax rates display a progressive structure.

"Tax The Rich" banner at an International Union of Socialist Youth campaign for a financial transaction tax.

The function which defines the progressive approach to an income tax, may be mathematically defined as a piecewise function. In every piece (tax bracket), it must be computed cumulatively, considering the taxes which had already been computed to the previous tax brackets. Pictured is the effective income tax for Portugal in 2012 and 2013.

Distribution of US federal taxes from 1979 to 2013, based on CBO Estimates.

A progressive tax is a tax in which the tax rate increases as the taxable amount increases.

Income tax

Punch cartoon (1907); illustrates the unpopularity amongst Punch readers of a proposed 1907 income tax by the Labour Party in the United Kingdom.

General government revenue, in % of GDP, from personal income taxes. For this data, the variance of GDP per capita with purchasing power parity (PPP) is explained in 27 % by tax revenue

An income tax is a tax imposed on individuals or entities (taxpayers) in respect of the income or profits earned by them (commonly called taxable income).

Regressive tax

A regressive tax is a tax imposed in such a manner that the tax rate decreases as the amount subject to taxation increases.

Flat tax

A flat tax (short for flat-rate tax) is a tax with a single rate on the taxable amount, after accounting for any deductions or exemptions from the tax base.

Trends in Tax Structures in OECD Countries

Indirect tax

General government revenue, in % of GDP, from indirect taxes. For this data, the variance of GDP per capita with purchasing power parity (PPP) is explained in 0 % by tax revenue.

An indirect tax (such as sales tax, per unit tax, value added tax (VAT), or goods and services tax (GST), excise, consumption tax, tariff) is a tax that is levied upon goods and services before they reach the customer who ultimately pays the indirect tax as a part of market price of the good or service purchased.

Map of countries and territories by their VAT status

Value-added tax

A supply-demand analysis of a taxed market

General government revenue, in % of GDP, from VAT. For this data, the variance of GDP per capita with purchasing power parity (PPP) is explained in 3% by tax revenue.

4 May 2010 "Campaña no más IVA" in Spain

National VAT act as a tariff on imports and their exports are exempt from VAT (zero-rated).

A value-added tax (VAT), known in some countries as a goods and services tax (GST), is a type of tax that is assessed incrementally.

Tax avoidance

Countries with politicians, public officials or close associates implicated in the Panama Papers leak on 15 April 2016

Tax avoidance is the legal usage of the tax regime in a single territory to one's own advantage to reduce the amount of tax that is payable by means that are within the law.

Sales tax

A sales tax is a tax paid to a governing body for the sales of certain goods and services.

The ratio of German assets in tax havens in relation to the total German GDP. Havens in countries with tax information sharing allowing for compliance enforcement have been in decline. The "Big 7" shown are Hong Kong, Ireland, Lebanon, Liberia, Panama, Singapore, and Switzerland.

Tax noncompliance

Tax campaigner Richard Murphy's estimate of the ten countries with the largest absolute levels of tax evasion. He estimated that global tax evasion amounts to 5 percent of the global economy.

Poster issued by the British tax authorities to counter offshore tax evasion.

Tax noncompliance (informally tax avoision) is a range of activities that are unfavorable to a government's tax system.

Poll tax

A poll tax, also known as head tax or capitation, is a tax levied as a fixed sum on every liable individual (typically every adult), without reference to income or resources.