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Taxation relates to the policies, regulations, and processes involved in deciding how much each citizen, resident, and business should contribute to funding government activities (i.e., tax policy). It is also about how these contributions should be collected from citizens, residents, and businesses (i.e., tax administration). It also discusses how society ensures that each citizen, resident, and business contribute their fair share as determined by the policies and regulations set by the government. Taxes fund the government’s operations, programs, and activities (i.e., fiscal policy). In this context, the government’s primary business is delivering public goods, services, infrastructure, and security that improve people’s living conditions.
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