# Hidden tax

Part of a series on :
Taxation :
An aspect of fiscal policy :
Policies
Government revenue
Property tax equalization
Tax revenue
Non-tax revenue
Tax law
Tax bracket
Flat tax
Tax threshold
Exemption
Credit
Deduction
Tax shift
Tax cut
Tax holiday
Tax amnesty
Tax advantage
Tax incentive
Tax reform
Tax harmonization
Tax competition
Tax withholding
Double taxation
Representation
Unions
Medical savings account :
Economics
General Theory
Price effect
Excess burden
Tax incidence
Laffer curve
Optimal tax
Theories
Optimal capital income taxation
Distribution of Tax
Tax rate
Flat
Progressive
Regressive
Proportional :
Collection
Revenue service
Revenue stamp
Tax assessment
Taxable income
Tax lien
Tax refund
Tax shield
Tax residence
Tax preparation
Tax investigation
Tax shelter
Tax collector
Private tax collection
Tax farming :
Noncompliance
General
Tax avoidance
Repatriation tax avoidance
Tax evasion
Tax resistance
Tax shelter
Debtors' prison
Smuggling
Black market
Unreported employment
Corporate
Tax inversion
Transfer mispricing
Base erosion and profit shifting (BEPS)
Double Irish
Dutch Sandwich
Single Malt
CAIA
Locations
Tax havens
Corporate havens
Offshore financial centres (OFCs)
Offshore magic circle
Conduit and sink OFCs
Financial centres
Financial Secrecy Index
Major examples
Ireland as a tax haven
Ireland v. Commission
Leprechaun economics
Liechtenstein tax affair
Luxembourg Leaks
Offshore Leaks
Paradise Papers
Panama Papers
Swiss Leaks
United States as a tax haven
Panama as a tax haven :
Types
Direct
Indirect
Per unit
Ad valorem
Aviation
Airport improvement
Landing
Solidarity
Capital gains
Expatriation
Consumption
Departure
Hotel
Sales
Stamp
Television
Tourist
Value-added
Dividend
Environmental tax
Carbon
Eco-tariff
Landfill
Natural resources consumption
Severance
Steering
Stumpage
Excise
Alcohol
Cigarette
Fat
Meat
Sin
Sugary drink
Tobacco
General
Georgist
Gift
Gross receipts
Hypothecated
Income
Inheritance (estate)
Land value
Luxury
Payroll
Pigouvian
Property
Resource rent
Single
Surtax
Turnover
Use
User charge/fee
Congestion
Fuel
Road/GNSS
Toll
Vehicle miles traveled
Corporate profit
Excess profits
Windfall
Negative (income)
Wealth :
International
Financial transaction tax
ATTAC
Currency transaction tax
European Union Common Consolidated Corporate Tax Base (CCCTB)
Global minimum corporate tax rate
Robin Hood tax
Tobin tax
Spahn tax
Tax equalization
Tax treaty
Exchange of Information
Permanent establishment
Transfer pricing
European Union FTT
Foreign revenue rule :
Trade
Custom
Duty
Tariff
Import
Export
Tariff war
Free trade
Free-trade zone
Trade agreement
ATA Carnet :
Research
Academic
Mihir A. Desai
Dhammika Dharmapala
James R. Hines Jr.
Ronen Palan
Joel Slemrod
Gabriel Zucman
Advocacy groups
Institute on Taxation and Economic Policy (ITEP)
Oxfam (UK)
Tax Foundation (US)
Tax Justice Network (TJN)
Tax Policy Center (US) :
Religious
Church tax
Eight per thousand
Teind
Tithe
Fiscus Judaicus
Leibzoll
Temple tax
Tolerance tax
Jizya
Kharaj
Khums
Nisab
Zakat :
By country
All Countries
List of countries by tax rates
Tax revenue to GDP ratio
Tax rates in Europe
Individual Countries
Albania
Algeria
Argentina
Armenia
Australia
Azerbaijan
Bangladesh
Bhutan
Brazil
Bulgaria
BVI
Canada
China
Colombia
Croatia
Denmark
Finland
France
Germany
Greece
Hong Kong
Iceland
India
Indonesia
Iran
Ireland
Israel
Italy
Japan
Kazakhstan
Lithuania
Malta
Morocco
Namibia
Netherlands
New Zealand
Norway
Pakistan
Palestine
Peru
Philippines
Poland
Portugal
Russia
South Africa
Sri Lanka
Sweden
Switzerland
Taiwan
Tanzania
United Arab Emirates
United Kingdom
United States
Uruguay :
Business portal
Money portal :
vte :
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:

## 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.

## Utilities taxes

    According to a 1998 study, taxes take up 48% of the price of gasoline.

## Inflation tax

    It is a hidden regressive tax.

## 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).

## United States

A study by the Institute for Policy Innovation suggested that hidden taxes account $2,462 per capita.

### Hidden tax

Quintiles of Household Cash Money Income according to the Tax Foundation, Calendar Year 2004
| | Bottom 20 Percent | Second 20 Percent | Third 20 Percent | Fourth 20 Percent | Top 20 Percent |
| Total Federal Taxes | 38.9% | 55.7% | 61.5% | 64.4% | 70.2% |
| Income | 4.0% | 12.0% | 17.6% | 22.6% | 35.7% |
| Payroll | 21.2% | 30.6% | 32.0% | 30.4% | 22.5% |
| Corporate Income | 6.3% | 8.4% | 8.2% | 8.2% | 8.1% |
| Gas | 1.6% | 1.2% | 1.0% | 0.8% | 0.6% |
| Alcoholic Beverages | 0.8% | 0.4% | 0.4% | 0.3% | 0.2% |
| Tobacco | 1.2% | 0.6% | 0.3% | 0.2% | 0.1% |
| Diesel Fuel | 0.2% | 0.3% | 0.3% | 0.3% | 0.3% |
| Air Transport | 0.5% | 0.4% | 0.4% | 0.4% | 0.4% |
| Other Excise | 1.0% | 0.6% | 0.4% | 0.4% | 0.2% |
| Customs, Duties, etc. | 2.2% | 1.2% | 0.9% | 0.8% | 0.5% |
| Estate & Gift | 0.0% | 0.0% | 0.0% | 0.0% | 1.7% |