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Hidden Taxes

Hidden Taxes Definition

Hidden Taxes are taxes not visible to the taxpayer. These taxes are levied on goods and services so that they raise prices and are paid unknowingly by the consumer. Examples for these kinds of hidden taxes include tariffs or import taxes and sin taxes on alcohol and cigarettes. The other type of hidden taxes, lower the amount of funds that can be spent on salaries like corporate income taxes. Hidden taxes decrease the purchasing power of individuals.

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