DEFINITION of 'Taxation'

Taxation refers to the act of a taxing authority actually levying tax. Taxation as a term applies to all types of taxes, from income to gift to estate taxes. It is usually referred to as an act; any revenue collected is usually called "taxes."


Taxation can also refer to taxes as an abstract concept, a actual dollar amount of tax that has been levied or the material funds that have been received as taxes. Although all of these definitions are technically correct, the one listed above is the most common. Taxation is one of the primary powers of government over the people.

  1. Taxes

    An involuntary fee levied on corporations or individuals that ...
  2. Fiscal Drag

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  3. Fiscal Neutrality

    Fiscal neutrality occurs when taxes and government spending are ...
  4. Golden Rule

    The Golden Rule, as it pertains to government spending, stipulates ...
  5. Income Tax

    A tax that governments impose on financial income generated by ...
  6. Estate Tax

    A tax levied on an heir's inherited portion of an estate if the ...
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  1. After receiving a required distribution when and how are my taxes affected?

    Any taxable amount of the distribution will represent ordinary income for the year that the distribution occurs and will ... Read Full Answer >>
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    For the purposes of taking a deduction for an IRA contribution, the IRS provides special allowances for individuals who are ... Read Full Answer >>
  3. Are personal loans tax deductible?

    Interest paid on personal loans is not tax deductible. If you take out a loan to buy a car for personal use or to cover other ... Read Full Answer >>
  4. Does a Flexible Spending Account (FSA) cover braces?

    Funds from a Flexible Spending Account (FSA) can be used to cover costs associated with installing, maintaining and removing ... Read Full Answer >>
  5. Does QVC charge sales tax?

    QVC, an American TV network, is registered with states to collect sales or use tax on taxable items. QVC is also required ... Read Full Answer >>
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