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Taxation is the process of imposing or levying some financial charges or some other form of charge from any person. Taxation is carried out under the laws of the State government or any functional equivalent of the state. In case any person fails to pay the taxes that he is supposed to, he is punishable under law. Taxation can also be imposed by sub national bodies. Tax consists of the direct and indirect tax. It can be paid in two ways, either in the form of money or in the form of its labour equivalent. Taxation is a forced contribution upon the individual and is not a contribution, payment or donation that a person makes voluntarily. L. Neil Smith had once remarked, “A libertarian presidential candidate isn't going to win anyway, so he can afford to say that all taxation is theft, and it isn't the job of a libertarian presidential candidate to cook up new ways to commit theft.”

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