Financial Terms Dictionary: ELI5 Version - Taxation

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a fundamental pillar of public finance and governmental revenue generation, refers to the compulsory imposition of financial charges or levies, commonly known as taxes, by government authorities on individuals, businesses, or entities within a jurisdiction. These levies serve as a primary means for governments to mobilize funds, supporting public services, infrastructure development, social welfare programs, and other essential functions that contribute to the common good and societal well-being.