(1) The objective element on which a tax is imposed. (2) The aims or purposes for which the tax is designed. Note: This term, as defined in (1) above, does not seem to be distinguished adequately from “measure of tax,” “subject of tax,” and “tax base.” Such distinction as can be drawn is pedantic, and the use of the term in this sense is not recommended. It is also recommended that the term “purpose of tax” be substituted for the second usage given above. Compare measure of tax; subject of tax; tax base.
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