Hidden tax

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The examples and perspective in this article deal primarily with the United States and do not represent a worldwide view of the subject. You may improve this article, discuss the issue on the talk page, or create a new article, as appropriate. (April 2010) (Learn how and when to remove this message)

A hidden tax is a tax that is not visible to the taxpayer. These taxes can raise prices of goods and lower salaries for workers. Hidden taxes, although hidden, can decrease the purchasing power of individuals significantly.

Many kinds of tax behave like hidden taxes:^[1]

Corporate income tax

Because of this tax, shareholders and employees get less dividends and salary. Also the tax is hidden in the cost of goods and services and, therefore, paid by the consumer.

Tariffs or import taxes

It lowers competition by raising the price of imports and products produced outside.

Sin taxes

Taxes on alcohol and cigarettes are highly regressive.

Travel taxes

Utilities taxes

According to a 1998 study, taxes take up 48% of the price of gasoline.^[1][2]

Inflation tax

It is a hidden regressive tax.^[3]

Financial repression

A range of measures which governments can employ to reduce their debt, which are often accompanied by inflation.

Profits from government-owned corporations

Especially when a government-owned corporation enjoys a legally protected monopoly and records excessive profits, such profits may be criticized as hidden taxation. Governments in some jurisdictions directly own utilities (making such profits related to utility taxes) and some monopolize the alcohol trade (making such profits related to sin taxes).

Sales taxes such as turnover taxes^[4]