Tax Definition

Tax is a financial levy imposed by a government; they are financial burdens placed upon individuals or property in order to support government. Taxes must be paid in cash and are not considered voluntary-that is, they are an enforced contribution. In the US, federal tax collection is performed by the Internal Revenue Service, state tax collection is performed by state-level organizations, and municipal or local taxes are variously collected.

Most US taxes are based upon the value of the item being taxed-be it income, cost of purchase, or market value of property. Governments have left no stone unturned in the pursuit of revenue, and hence almost everything is taxed in some way; often repeatedly. While it’s an amusing pastime to think about a world without taxes, the reality is that you’re going to pay a whole lot of tax a whole lot of the time.

You might occasionally hear some self-proclaimed genius explain that taxation is illegal and should not be endured; those guys are either in prison or on their way to prison (or are not practicing what they’re preaching). That’s not to say that political activism to reduce or eliminate taxes should be ignored. But existing taxes are simply inescapable, unfortunately.