Income Tax

… a core concept in Economic Analysis and Atlas102

Concept description

Investopedia defines income tax as a tax that governments impose on financial income generated by all entities within their jurisdiction.

Investopedia goes on to say:

“By law, businesses and individuals must file an income tax return every year to determine whether they owe any taxes or are eligible for a tax refund. Income tax is a key source of funds that the government uses to fund its activities and serve the public. Most countries employ a progressive income tax system in which higher income earners pay a higher tax rate compared to their lower earning counterparts.”