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Tax Burden

Tax burden is the claim of taxes on ability to pay. Taxes are levied on the value of taxable items such as income and property and market exchanges, including purchases of goods and services. Taxes are a major component of government revenue, distinguished from all other sources by being compulsory. Governments require payment of taxes to redistribute income and wealth and to pay for programs for which voluntary payments are unlikely to produce sufficient funding. Public education is an excellent example of a function for which revenues from nontax sources would be inadequate. Although some people willingly pay tuition to private elementary and secondary schools, the majority of households would not have the means to finance their children’s educations. Policymakers understand the value of a ...

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