1. Taxation is the main form and tool of national organization's fiscal revenue. 2. Taxation is one of the important levers for the state to regulate the economy. 3. Taxation has the function of safeguarding state power. 4. Taxation has the function of supervising economic activities. Taxation is a form in which the state distributes social products by virtue of political power or public power. Taxation is a form of distribution that meets the needs of the public; Taxation has the characteristics of indirect repayment (free of charge), compulsory obligation (compulsory) and legal norm (fixed).
The essence of taxation is a special distribution relationship formed by the state collecting goods or currency from economic units and individuals without compensation according to law. This distribution relationship reflects the economic relationship and interest relationship between the state and various classes and strata. It is embodied in the following aspects: the main body of distribution is the state, which is the distribution relationship based on state power; The object of distribution is social surplus products. No matter who pays taxes, all tax sources come from the national income created by the workers in that year or the social wealth accumulated in previous years.
The purpose of distribution is to serve the realization of state functions; The result of distribution is bound to benefit the ruling class, but not the ruled class, because taxation always serves the interests of the ruling class. Different social and economic systems and different national nature determine the different nature of taxation in different countries.