Stealth Taxes

AAA

DEFINITION of 'Stealth Taxes'

A type of levy that governments use to increase their revenues without raising the ire of taxpayers. Compared to income taxes and property taxes, stealth taxes are smaller and less visible, so they are less likely to attract attention or spark protest. Examples of stealth taxes include sales taxes, value added taxes, tobacco taxes, liquor taxes, air travel taxes and gasoline taxes.

INVESTOPEDIA EXPLAINS 'Stealth Taxes'

Stealth taxes are sometimes built into the prices of products so that consumers don't see how much tax they are paying. Stealth taxes are often easier for governments to collect than other types of taxes and they are collected at the point of sale and are not dependent on the taxpayer's income. In addition to the implementation of new taxes or the raising of existing taxes, stealth taxes can come in the form of the removal of existing tax breaks.



RELATED TERMS
  1. Hidden Taxes

    Taxes that are indirectly assessed upon consumer goods without ...
  2. Ad Valorem Tax

    A tax based on the assessed value of real estate or personal ...
  3. Property Tax

    A tax assessed on real estate by the local government. The tax ...
  4. Value-Added Tax - VAT

    A type of consumption tax that is placed on a product whenever ...
  5. Duty

    1. A tax levied on certain goods, services or transactions. Duties ...
  6. Induced Taxes

    Within the context of macroeconomics and fiscal policy, a type ...
Related Articles
  1. Taxes

    10 Money-Saving Year-End Tax Tips

  2. Taxes

    Understanding The U.S. Tax Withholding ...

  3. Taxes

    Tax Withholding: Good For Government, ...

  4. Taxes

    Why should I keep records on my tax-exempt ...

Hot Definitions
  1. Capitulation

    When investors give up any previous gains in stock price by selling equities in an effort to get out of the market and into ...
  2. Turkey

    Slang for an investment that yields disappointing results or turns out worse than expected. Failed business deals, securities ...
  3. Conduit Issuer

    An organization, usually a government agency, that issues municipal securities to raise capital for revenue-generating projects ...
  4. Financing Entity

    The party in a financing arrangement that provides money, property, or another asset to an intermediate entity or financed ...
  5. Hyperinflation

    Extremely rapid or out of control inflation. There is no precise numerical definition to hyperinflation. Hyperinflation is ...
  6. Gross Rate Of Return

    The total rate of return on an investment before the deduction of any fees or expenses. The gross rate of return is quoted ...
Trading Center