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tax policy

n. a program for setting taxes [syn: tax program]

Tax policy

Tax policy is the choice by a government as to what taxes to levy, in what amounts, and on whom. It has both microeconomic and macroeconomic aspects. The macroeconomic aspects concern the overall quantity of taxes to collect, which can inversely affect the level of economic activity; this is one component of fiscal policy. The microeconomic aspects concern issues of fairness (who to tax) and allocative efficiency (i.e., which taxes will have how much of a distorting effect on the amounts of various types of economic activity).

Usage examples of "tax policy".

My husband's tax policy stems from the same source as his religious policy.

His tax policy is going to ruin everyone in Rome except the imperial treasury.