Hidden tax

Many kinds of tax behave like hidden taxes:

Corporate income tax

Because of this tax, shareholders and employees get less dividends and salary. Also the tax is hidden in the cost of goods and services and, therefore, paid by the consumer.

Tariffs or import taxes

It lowers competition by raising the price of imports and products produced outside.

Sin taxes

Taxes on alcohol and cigarettes are highly regressive.

Travel taxes

Utilities taxes

According to a 1998 study, taxes take up 48% of the price of gasoline.

Inflation tax

It is a hidden regressive tax.

Financial repression

A range of measures which governments can employ to reduce their debt, which are often accompanied by inflation.

Profits from government-owned corporations

Especially when a government-owned corporation enjoys a legally protected monopoly and records excessive profits, such profits may be criticized as hidden taxation. Governments in some jurisdictions directly own utilities (making such profits related to utility taxes) and some monopolize the alcohol trade (making such profits related to sin taxes).

Sales taxes such as turnover taxes

United States

A study by the Institute for Policy Innovation suggested that hidden taxes account $2,462 per capita.

Hidden tax

Quintiles of Household Cash Money Income according to the Tax Foundation, Calendar Year 2004

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