Examlex
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Taxing
The act of imposing taxes on individuals or businesses by the government to generate revenue for public expenditures.
Ability-to-Pay Principle
A taxation principle that suggests taxes should be levied based on the taxpayer's ability to pay, implying that those with higher incomes should pay more taxes.
Progressive Tax
A tax system where the tax rate increases as the taxable income or wealth increases, meaning higher earners pay a larger percentage of their income than lower earners.
Regressive Tax
A tax system where the tax rate decreases as the amount subject to taxation increases, placing a heavier burden on lower-income earners.
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