Tax

A tax is a monetary payment made to the government that serves to finance public services. Examples of taxes include value-added tax or income tax. A progressive tax rate means: the higher a taxable amount of money or value (tax base), the higher the percentage that needs to be paid in taxes (e.g. income tax and wage tax). A linear tax rate means that the percentage that has to be paid as a tax is independent of the tax base (for example, corporation tax and investment income tax).