Tax Liability

What Does it Mean?
------------------------------------------------------------
The total amount of tax that an entity is legally obligated to pay to an authority as the result of the occurrence of a taxable event. Tax liability can be calculated by applying the appropriate tax rate to the taxable event's tax base. Taxable events include, but are not limited to, annual income, the sale of an asset, a fiscal year-end or an inheritance.

Investopedia Says:
------------------------------------------------------------
A tax liability is a legal claim on assets. Should an entity default on paying its taxes, the governing authority may foreclose on the delinquent account, or take out a lien or encumbrance on an asset.

Recessionista

What Does it Mean?
------------------------------------------------------------
A person who is able to remain stylish during times of economic hardship. A recessionista can shop on a limited budget and still manage to be up to date on the most current fashions. A recessionista does not let a bad economy, inflation, or a strong recession damage his or her wardrobe and opts to search for sales and shop at thrifty discount stores instead.

Investopedia Says:
------------------------------------------------------------

The term recessionista derives from a combination of the words recession and fashionista. It is used to make light of a bad situation and demonstrate how people can maintain their lifestyles in times of struggle.

Hidden Taxes

What Does it Mean?
------------------------------------------------------------
Taxes that are indirectly assessed upon consumer goods without the consumer's knowledge. Hidden taxes are levied upon the goods at some point during the production process and therefore raise the cost of the goods sold. However, this tax is never revealed directly to the consumer, who simply pays a higher price for the good, not knowing that part of that price is due to this tax.

Investopedia Says:
------------------------------------------------------------
Some ad valorem taxes are an example of a hidden tax, as are taxes that are imposed at the wholesale level. Most consumers are aware that there is a tax on retail goods (sales tax), but this is by no means the only tax levied on consumer goods. Hidden taxes are almost invariably passed on to the consumer.

Ad Valorem Tax

What Does it Mean?
------------------------------------------------------------
A tax based on the assessed value of real estate or personal property. Ad valorem taxes can be property tax or even duty on imported items. Property ad valorem taxes are the major source of revenue for state and municipal governments.
Municipal property ad valorem taxes are also known as "property taxes".

Investopedia Says:
------------------------------------------------------------
The phrase ad valorem is Latin for "according to value". In the case of municipal property taxes, property owners have their property assessed on a periodic basis by a public tax assessor. The assessed value of the property is then used to compute an annual tax, which is levied on the owner by his or her municipality. Ad valorem taxes are incurred through ownership of an asset, in contrast to transactional taxes, such as sales taxes, which are incurred only at the time of transaction.