Surtax is a term used to describe an additional tax on top of an existing tax. The word is spelled with the letters "s-u-r-t-a-x" and pronounced as /sərˈtæks/. The "s" in surtax is pronounced as a /s/ sound followed by a schwa sound, while the "u" is pronounced as a short /ə/ sound. The "r" is pronounced with a slight rolling sound, and the "a" is pronounced with a short /æ/ sound. The "t" in surtax is pronounced with a /t/ sound and the final "x" is pronounced as a /ks/ sound.
A surtax is a type of additional tax imposed on top of the existing tax liability. It is a supplementary levy that is applied to certain items, transactions, or groups of taxpayers. Unlike the regular tax, which is based on the income or value of goods and services, a surtax is often implemented to raise revenue for specific purposes or to address temporary financial needs of the government.
The surtax can be progressive, meaning that it is imposed at varying rates depending on the income level or value of the taxable item. It can also be a fixed percentage added to the existing tax, regardless of income or value. Surtaxes may be imposed on individual income, corporate profits, capital gains, luxury goods, or specific industries.
The purpose of implementing surtaxes may vary. Governments may utilize surtaxes to fund specific projects such as infrastructure development, healthcare systems, or education reforms. In some cases, surtaxes are introduced to redistribute wealth, mitigate income inequality, or encourage responsible behavior, such as higher taxes on tobacco products to discourage smoking.
Surtaxes can be temporary or permanent, depending on the government's fiscal policy and financial needs. They could be repealed or modified once the intended objectives are achieved or if the financial circumstances change.
The word "surtax" is derived from two root words, "sur" and "tax".
1. "Sur" originates from the Old French word "sor", meaning "over" or "above". It later evolved into "suro-" in Middle French. "Sur" entered Middle English through the Anglo-Norman language, still meaning "over" or "above".
2. "Tax" comes from the Latin word "taxare", which means "to appraise" or "to censure". In Latin, "taxare" was primarily used to refer to the assessment of taxes or contributions.
Combining these two roots, "sur" (over, above) and "tax" (assessment, appraisal), we get "surtax", which refers to an additional tax levied on top of the regular or existing taxes.