Taxation is an economic and political institution through which a government compels individuals and organizations within its jurisdiction to contribute money or resources, used to fund public goods, administration, defense and redistribution. Historical taxation institutions have ranged from tribute exacted by conquering states and labor-based levies to modern income, sales, property and corporate taxes administered through formal bureaucracies. As one of the oldest and most universal institutions of organized society, taxation has repeatedly shaped political history, from tax revolts and the principle of no taxation without representation to modern debates over tax policy's role in funding the welfare state and shaping economic behavior.
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Tribute systems are widely treated as an early institutional form from which formal state taxation later developed, both extracting resources from a subordinate population for a ruling authority.
The welfare state redistributive programs are funded principally through taxation.
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