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Simple English definitions for legal terms
capitation tax
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A quick definition of capitation tax:
A capitation tax is a type of tax that is charged to each person in a certain area or group, regardless of their income or wealth. It is also known as a poll tax. Taxes are charges that the government imposes on people, businesses, or property to raise money for public needs. They can take many forms, such as money or goods, and are used to support the government and its services. A tax that has been incurred but not yet paid is called an accrued tax, while an accumulated-earnings tax is a penalty tax imposed on a corporation that has retained its earnings to avoid income tax liability.
A more thorough explanation:
A capitation tax is a type of tax that is imposed on each person in a certain area or population, regardless of their income or wealth. It is also known as a poll tax.
- In the past, some countries have imposed a capitation tax on their citizens. For example, in the United Kingdom, a poll tax was introduced in 1989, which required every adult to pay the same amount of tax, regardless of their income.
- Another example of a capitation tax is a fee that is charged to every student in a school district, regardless of their family's income or property value.
These examples illustrate how a capitation tax is a fixed amount that is charged to each person, regardless of their ability to pay. This can be seen as unfair, as it places a greater burden on those who are less wealthy.