What is the difference between a fee and a tax? Is it just taxation without justification?

Answer 1

Generally a tax is assessed on usage or purchase of something (like Sales Tax, Gasoline Tax) or on value (Property tax, Income tax) in which many of the payees don't necessarily directly benefit.

A fee is purports to be the cost of a specific service provided. The general principle is that everything costs something and for fees, the users of that service are bearing full cost of the service cost.

Actually fees are the opposite of taxation without justification, they are directly justified and auditable. It is conceivable that at some point we would be assessed a cost for all services used (like a restaurant bill at the end of a meal) but then the outcry would be at the "superrich" living overseas and not paying taxes. At the end of the day, be happy you were one of the 0.2% or so lucky enough to be born in the greatest country in the world, and pay your fair share.

Answer 2

A fee is usually associated with some activity or process, relating to the govt. So, registrations, licenses, access fees, whatever. Fees usually go to offset the actual costs of the activity involved.

A tax is levied based on some activity unrelated to the govt, such as income or sales, where the govt is not a direct party to the transaction.

Thus, the fee is usallly more just justified than taxes, because the fee usually relates directly to the activity in question, as opposed to merely contributing to the common fund.

Answer 3

A fee is for a specific service (like getting a passport) taxation is just sucking money from where some is generated.

Answer 4

Even with a Fair Tax you would have to pay fee's. Fee's are taxes, just easier to make law.

Answer 5

Down with the IRS! No more income tax! No more payroll tax! Support the Fair Tax!

http://www.fairtax.org/

Answer 6

I absolutely agree with Heinz!

Answer 7

Yes i believe so, but the courts don't.

Answer 8

not much. a pig is a pig even if you call it pork