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.

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

84 related topics

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Air pollution from motor vehicles is an example of a negative externality. The costs of the air pollution for the rest of society is not compensated for by either the producers or users of motorized transport.

Externality

Externality or external cost is an indirect cost or benefit to an uninvolved third party that arises as an effect of another party's activity.

Externality or external cost is an indirect cost or benefit to an uninvolved third party that arises as an effect of another party's activity.

Air pollution from motor vehicles is an example of a negative externality. The costs of the air pollution for the rest of society is not compensated for by either the producers or users of motorized transport.
Graph of Positive Externality in Production
Light pollution is an example of an externality because the consumption of street lighting has an effect on bystanders that is not compensated for by the consumers of the lighting.
Negative production externality
Negative consumption externality
Positive production externality
Positive consumption externality
Demand curve with external costs; if social costs are not accounted for price is too low to cover all costs and hence quantity produced is unnecessarily high (because the producers of the good and their customers are essentially underpaying the total, real factors of production.)
Supply curve with external benefits; when the market does not account for the additional social benefits of a good both the price for the good and the quantity produced are lower than the market could bear.
"Relative percentage price [∆] increases for broad categories [...] when externalities of greenhouse gas emissions are included in the producer's price."

Hence the most common approach may be to regulate the firm (by imposing limits on the amount of pollution considered "acceptable") while paying for the regulation and enforcement with taxes.

Front view of Stuart Saunders Hogg Market, Kolkata

Market (economics)

Composition of systems, institutions, procedures, social relations or infrastructures whereby parties engage in exchange.

Composition of systems, institutions, procedures, social relations or infrastructures whereby parties engage in exchange.

Front view of Stuart Saunders Hogg Market, Kolkata
Corn Exchange in London, circa 1809
New York Stock Exchange (United States), 1963
A market in Râmnicu Vâlcea by Amedeo Preziosi
Cabbage market by Václav Malý
Wet market in Singapore
Aberdeen (Scotland) fish market.
Fish market in Peru.
An Afghan market teeming with vendors and shoppers
Monday market in Portovenere, Italy
Wetherby (England) town's market
Gómez Palacio city's municipal market
Used cars market: due to presence of fundamental asymmetrical information between seller and buyer the market equilibrium is not efficient—in the language of economists it is a market failure
A coal power plant in Datteln—emissions trading or cap and trade is a market-based approach used to control pollution by providing economic incentives for achieving reductions in the emissions of pollutants
Perceptual mapping is a diagrammatic technique used by marketers that attempts to visually display the perceptions of customers or potential customers and the position of a product, product line, brand, or company is typically displayed relative to their competition
Works Project Administration poster (1937)
Market bargaining in Dilli Haat (Delhi)
Trade networks are very old and in this picture the blue line shows the trade network of the Radhanites, circa 870 CE
Yongsan Electronics Market in Seoul (South Korea)
Puritans drinking from pewter mugs at the tavern, Massachusetts.
Black market in La Paz
A Kula bracelet from the Trobriand Islands
The Kula ring
French crown jewels in the Louvre exhibition
United States home sales (blue)
Book Sales in the United Kingdom
Size and growth of the legal outsourcing market
Global mobiles applications market size

In economics, a market that runs under laissez-faire policies is called a free market, it is "free" from the government, in the sense that the government makes no attempt to intervene through taxes, subsidies, minimum wages, price ceilings and so on.

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Tax rate

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In a tax system, the tax rate is the ratio (usually expressed as a percentage) at which a business or person is taxed.

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

Proportional tax

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

A proportional tax is a tax imposed so that the tax rate is fixed, with no change as the taxable base amount increases or decreases.

Figure 1 – tax incidence in perfect competition

Tax incidence

Figure 1 – tax incidence in perfect competition
Inelastic supply, elastic demand: the burden is on producers
Similar elasticities: burden shared

In economics, tax incidence or tax burden is the effect of a particular tax on the distribution of economic welfare.

Number of high-net-worth individuals in the world in 2011

Redistribution of income and wealth

Number of high-net-worth individuals in the world in 2011

Redistribution of income and wealth is the transfer of income and wealth (including physical property) from some individuals to others through a social mechanism such as taxation, welfare, public services, land reform, monetary policies, confiscation, divorce or tort law.

A diagram showing the "effects of price freedom"

Free market

System in which the prices for goods and services are self-regulated by buyers and sellers negotiating in an open market without market coercions.

System in which the prices for goods and services are self-regulated by buyers and sellers negotiating in an open market without market coercions.

A diagram showing the "effects of price freedom"

The laissez-faire principle expresses a preference for an absence of non-market pressures on prices and wages such as those from discriminatory government taxes, subsidies, tariffs, regulations, or government-granted monopolies.

An advertising poster for a Dutch insurance company from c. undefined 1900–1918 depicts an armored knight

Insurance

Means of protection from financial loss.

Means of protection from financial loss.

An advertising poster for a Dutch insurance company from c. undefined 1900–1918 depicts an armored knight
Merchants have sought methods to minimize risks since early times. Pictured, Governors of the Wine Merchant's Guild by Ferdinand Bol, c. 1680.
Lloyd's Coffee House was the first organized market for marine insurance.
Leaflet promoting the National Insurance Act 1911.
A wrecked vehicle in Copenhagen
Great Western Hospital, Swindon
Workers' compensation, or employers' liability insurance, is compulsory in some countries
Amicable Society for a Perpetual Assurance Office, Serjeants' Inn, Fleet Street, London, 1801
This tornado damage to an Illinois home would be considered an "Act of God" for insurance purposes
US Airways Flight 1549 was written off after ditching into the Hudson River
Hurricane Katrina caused over $80 billion of storm and flood damage
The demand for terrorism insurance surged after 9/11
The subprime mortgage crisis was the source of many liability insurance losses
High-value horses may be insured under a bloodstock policy
Certificate issued by Republic Fire Insurance Co. of New York c. 1860
9/11 was a major insurance loss, but there were disputes over the World Trade Center's insurance policy

In most countries, life and non-life insurers are subject to different regulatory regimes and different tax and accounting rules.

Microeconomics analyzes the market mechanisms that enable buyers and sellers to establish relative prices among goods and services. Shown is a marketplace in Delhi.

Microeconomics

Branch of mainstream economics that studies the behavior of individuals and firms in making decisions regarding the allocation of scarce resources and the interactions among these individuals and firms.

Branch of mainstream economics that studies the behavior of individuals and firms in making decisions regarding the allocation of scarce resources and the interactions among these individuals and firms.

Microeconomics analyzes the market mechanisms that enable buyers and sellers to establish relative prices among goods and services. Shown is a marketplace in Delhi.
The supply and demand model describes how prices vary as a result of a balance between product availability and demand. The graph depicts an increase (that is, right-shift) in demand from D1 to D2 along with the consequent increase in price and quantity required to reach a new equilibrium point on the supply curve (S).
United States Capitol Building: meeting place of the United States Congress, where many tax laws are passed, which directly impact economic welfare. This is studied in the subject of public economics.

Microeconomics also deals with the effects of economic policies (such as changing taxation levels) on microeconomic behavior and thus on the aforementioned aspects of the economy.

Circulation in macroeconomics.

Macroeconomics

Branch of economics dealing with performance, structure, behavior, and decision-making of an economy as a whole.

Branch of economics dealing with performance, structure, behavior, and decision-making of an economy as a whole.

Circulation in macroeconomics.
A traditional AS–AD diagram showing a shift in AD and the AS curve becoming inelastic beyond potential output.
In this example of an IS/LM chart, the IS curve moves to the right, causing higher interest rates (i) and expansion in the "real" economy (real GDP, or Y).
Natural resources flow through the economy and end up as waste and pollution
A chart using US data showing the relationship between economic growth and unemployment expressed by Okun's law. The relationship demonstrates cyclical unemployment. Economic growth leads to a lower unemployment rate.
Changes in the ten-year moving averages of price level and growth in money supply (using the measure of M2, the supply of hard currency and money held in most types of bank accounts) in the US from 1880 to 2016. Over the long run, the two series show a close relationship.
An example of intervention strategy under different conditions

Examples of such tools are expenditure, taxes, debt.