A means by which governments finance their expenditure by imposing charges on citizens and corporate entities. Governments use taxation to encourage or discourage certain economic decisions. For example, reduction in taxable personal (or household) income by the amount paid as interest on home mortgage loans results in greater construction activity, and generates more jobs. Or:
The act of laying a tax, or of imposing taxes, as on the subjects of a state, by government, or on the members of a corporation or company, by the proper authority; the raising of revenue; also, a system of raising revenue. The act of taxing, or assessing a bill of cost.
* Comparing of tax and penalty. Tax and Penalty
Tax and Penalty is Debt associated with the failure to pay taxes to the federal or state government on earned income. Unpaid tax debt can cause stiff penalties and even jail time in the United States. The government also has the ability to garnish wages and place levies on property for unpaid tax debt. Sometimes the Internal Revenue Service will allow the debtor to setup a payment plan until the amount has been paid in full, while Tax Penalties:
There are several ways to get penalized by the Internal Revenue Service (IRS) when filing a tax return.
The most obvious way is to not file at all if you have taxable income for a particular year or to have filed late for no apparent reason or to have participated in a withdrawal of funds or received dividends on retirement or investment income. If the IRS conducts an audit on your return and find that there are discrepancies, especially obvious discrepancies due to negligence or flagrant violations of tax laws, you could be penalized from a few dollars up to the maximum that the tax laws allow. A negligent taxpayer is one who doesn't make a reasonable attempt to follow the rules and...