Tax burden

Tax burden refers to the amount of taxes individuals or businesses are required to pay to the government, relative to their income or economic activity. It indicates how much of their earnings or resources are allocated toward taxes. A higher tax burden means more of their income goes toward taxes, while a lower burden means less. This measure helps assess the impact of taxation on economic behavior and overall financial health, influencing decisions and resource allocation. It varies by country, income levels, and types of taxes imposed.