Annual charge levied on both earned income (wages, salaries, commission) and unearned income (dividends,interest, rents). In addition to financing a government's operations, progressive income taxation is designed to distribute wealth more evenly in a population, and to serve as automatic fiscal stabilizer to cushion the effects of economic cycles. Its two basic types are (1) personal income ... Read more

USAGE EXAMPLE

Because Florida does not levy income tax, it relies on revenue generated from sales and property tax to fund the state.