Definition

Noun: A hidden tax is a government levy or charge that is not explicitly labeled as a tax and is often paid by the consumer indirectly, without their full awareness. It is typically embedded in the price of goods or services.

Usage

A "hidden tax" is a term used in economics and public policy to describe a levy that functions as a tax but is not presented as one to the final payer. It is often discussed in contexts of consumer rights, transparency, and tax policy.

Examples

• Noun:
  • Many consider the inflation of currency to be a form of hidden tax on savings.
  • The increased fees on airline tickets were criticized as a hidden tax on travelers.

Advanced Usage

• "to be a hidden tax on something": to function as an indirect, often unnoticed, financial burden on a particular group or activity.
  • The new regulatory compliance costs act as a hidden tax on small businesses.

Variants and Related Words

• Stealth tax (n): A synonym for hidden tax, emphasizing its concealed nature.
  • The government was accused of introducing a series of stealth taxes.

Synonyms

• Indirect tax: A tax collected by an intermediary (like a retailer) from the person who bears the ultimate economic burden.
• Implicit levy: A charge that is not officially designated as a tax but has the same economic effect.

Related Phrases

• Tax incidence: The analysis of who ultimately bears the economic burden of a tax, which is a key concept when discussing hidden taxes.

Noun

1. a tax paid unwittingly by the consumer (such as ad valorem taxes)