|
|
Article: Taxation
- Article from:
- Dictionary of American History
- Author:
CopyrightCOPYRIGHT 2003 The Gale Group Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
|
TAXATION
TAXATION
is the imposition by a government of a compulsory contribution on its citizens for meeting all or part of its expenditures. But taxation can be more than a revenue raiser. Taxes can redistribute income, favor one group of taxpayers at the expense of others, punish or reward, and shape the behavior of taxpayers through incentives and disincentives. The architects of American tax policy have always used taxes for a variety of social purposes: upholding social order, advancing social justice, promoting economic growth, and seeking their own political gain. The need for new revenues has always set the stage for pursuing social goals through taxation, and the need for new ...