<P> All large businesses incur administrative costs in the process of delivering revenue collected from customers to the suppliers of the goods or services being purchased . Taxation is no different; the resource collected from the public through taxation is always greater than the amount which can be used by the government . The difference is called the compliance cost and includes (for example) the labour cost and other expenses incurred in complying with tax laws and rules . The collection of a tax in order to spend it on a specified purpose, for example collecting a tax on alcohol to pay directly for alcoholism - rehabilitation centres, is called hypothecation . Finance ministers often dislike this practice, since it reduces their freedom of action . Some economic theorists regard hypothecation as intellectually dishonest since, in reality, money is fungible . Furthermore, it often happens that taxes or excises initially levied to fund some specific government programs are then later diverted to the government general fund . In some cases, such taxes are collected in fundamentally inefficient ways, for example, though highway tolls . </P> <P> Since governments also resolve commercial disputes, especially in countries with common law, similar arguments are sometimes used to justify a sales tax or value added tax . Some (libertarians, for example) portray most or all forms of taxes as immoral due to their involuntary (and therefore eventually coercive / violent) nature . The most extreme anti-tax view, anarcho - capitalism, holds that all social services should be voluntarily bought by the person (s) using them . </P> <P> The Organisation for Economic Co-operation and Development (OECD) publishes an analysis of tax systems of member countries . As part of such analysis, OECD developed a definition and system of classification of internal taxes, generally followed below . In addition, many countries impose taxes (tariffs) on the import of goods . </P> <P> Many jurisdictions tax the income of individuals and business entities, including corporations . Generally, the tax is imposed on net profits from business, net gains, and other income . Computation of income subject to tax may be determined under accounting principles used in the jurisdiction, which may be modified or replaced by tax law principles in the jurisdiction . The incidence of taxation varies by system, and some systems may be viewed as progressive or regressive . Rates of tax may vary or be constant (flat) by income level . Many systems allow individuals certain personal allowances and other nonbusiness reductions to taxable income, although business deductions tend to be favored over personal deductions . </P>

Where did the idea of taxes come from