Stealth Tax

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Stealth Tax is a term used for a tax levied in such a way that is it not noticed, or is not recognized as a tax.[Oxford English Dictionary online]

One example of a stealth tax where it is not recognised as a tax is in the United Kingdom, where the British Government is using revenue from the National Lottery to help fund public spending.[The overwhelming case for paying stealth taxes] Samuel Brittan, The Financial Times 25 October 1999.
Stealth taxes may be recognised as taxation, but remain largely unnoticed, this is the case in the UK with Value Added Tax (VAT). [Going Independent: The 'fiscal theme park' of VAT], Patrick Walker The Independent 26 February 2002 Changes in VAT in the UK between 1979 and 1991, over which period it rose from a reduced rate of 8% to a rate of 17.5%, compensated for a large reduction in the higher and basic rates of income tax and somewhat shifted the burden of taxation from income onto consumption.[Value Added Tax] on [politics.co.uk] 29 June 2005

Stealth taxes can be viewed as regressive, more affluent people are less affected by VAT, for example.[Tax Policy: Ripe for Reform?] Washington Post 28 April 1998. State Lotteries may also be viewed as a form of taxation,[State-Run Lotteries as a Form of Taxation], Alicia Hansen: [The Tax Foundation] 8 October 2005 and there is evidence that they are played more by poor people than by the affluent.[Does The State Lottery Exploit The Underclass?], Greg Blankenship: Illinois Review 9 February 2006 Stealth Tax should not be confused with double taxation.

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