Tax: meaning, definitions and examples

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Definitions

^{Context #1 | Noun}

payment

A compulsory contribution to state revenue, levied by the government on workers' income and business profits, or added to the cost of some goods, services, and transactions.

Synonyms

assessment, duty, levy.

Which Synonym Should You Choose?

Word	Description / Examples
tax	A tax is a financial charge imposed by a government on individuals or businesses to fund public services and infrastructure. It is a general term used for various types of charges on income, property, sales, and more. Income tax is due on April 15th Sales tax is added to the purchase price of goods
duty	Duty is a specific type of tax imposed on imported and exported goods. It is often used in the context of customs and trade. The term can also indicate a moral or legal obligation. Import duty on electronics can be quite high It is your duty to pay taxes honestly
levy	Levy refers to the act of imposing or collecting a tax, fee, or fine. It can also mean the amount that is imposed or collected. The term is often used in official or legal contexts. The government decided to levy a new tax on luxury cars A special levy was imposed to fund the new highway
assessment	Assessment often refers to the process of evaluating or determining the value of property or an individual's income for taxation purposes. It can also just mean an evaluation in general contexts. The assessment of your property value is higher this year The teacher's assessment of the students' performance was positive

Examples of usage

Individuals and businesses are required to pay taxes to the government.
The sales tax on that item is 8%.
She calculated her income tax for the year.
The government uses tax revenue to fund public services.
Taxes can be deducted from your paycheck.

^{Context #2 | Verb}

financial

To impose a tax on (someone or something).

Synonyms

charge, impose, levy.

Which Synonym Should You Choose?

Word	Description / Examples
tax	Common term for compulsory financial charges imposed by a government on individuals or businesses. Income tax must be filed by April 15th each year The new government promises to lower taxes for the middle class
levy	Typically used in formal or legal contexts to describe the act of officially collecting a tax, fee, or fine, often by the government. The city council voted to levy a new property tax The government levied a fine on the company for environmental violations
charge	Used when referring to fees for services or goods, not necessarily by the government. The hotel charges a service fee for room service There is a late charge if you don't return the book on time
impose	Often used to describe the act of enacting laws, rules, or fees, often with a sense of authority or burden. The government decided to impose new regulations on emissions They imposed a strict dress code in the office

Examples of usage

The government taxes personal income.
They taxed imported goods at a high rate.
The new law will tax carbon emissions.
He was taxed heavily on his inheritance.
The city council voted to tax property owners.

Interesting Facts

Historical Origins

The word 'tax' comes from the Latin 'taxare', which means 'to assess' or 'to evaluate'.
Taxes have been collected since ancient times; in Egypt, people paid taxes with goods like crops or livestock.
In medieval England, a 'tithe', which was one-tenth of a person's produce, was often required for church support.

Types of Taxes

Income tax is based on how much money a person or a corporation earns.
Sales tax is added to the price of goods and services, making items more expensive at purchase.
Property tax is calculated based on the value of land and buildings owned by a person or business.

Economic Impact

Taxes fund essential services like education, healthcare, and public safety, shaping the quality of life in communities.
High tax rates can influence people's decisions on jobs and spending, as they consider the money taken by the government.
Taxation can also be used to address economic inequalities by redistributing wealth from the rich to the less fortunate.

Global Perspectives

Some countries, like Sweden, have high tax rates but offer extensive public services, leading to a strong welfare state.
In contrast, places with low tax rates may struggle to provide these essential public services, leading to disparities in quality of life.
Tax compliance varies greatly around the world, influenced by cultural attitudes toward government and civic duty.

Taxation Theories

One theory is the 'Ability to Pay' principle, which suggests that those with more resources should pay higher taxes.
The 'Benefits Received' principle argues that people should pay taxes based on the benefits they receive from government services.
Progressive taxation is designed to take a larger percentage from high-income earners, promoting social equity.

Translations

Translations of the word "tax" in other languages:

🇵🇹 imposto

🇮🇳 कर

🇩🇪 Steuer

🇮🇩 pajak

🇺🇦 податок

🇵🇱 podatek

🇯🇵 税金

🇫🇷 impôt

🇪🇸 impuesto

🇹🇷 vergi

🇰🇷 세금

🇸🇦 ضريبة

🇨🇿 daň

🇸🇰 daň

🇨🇳 税

🇸🇮 davek

🇮🇸 skatt

🇰🇿 салық

🇬🇪 ბაჟი

🇦🇿 vergi

🇲🇽 impuesto

Word Frequency Rank

With position #352, this word is vital for basic English fluency. It appears very frequently in everyday language and should be among the first words you learn and actively use.

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349 experience
350 health
351 office
352 tax
353 past
354 third
355 date
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