> While the term "tax" is used proverbially, if the government does not keep the money, it is actually on? This was a constitutional question in Canada, and the

> While the term "tax" is used proverbially, if the government does not keep the money, it is actually on? This was a constitutional question in Canada, and the majority of the Supreme Court ruled that it was not As far as I can see, the text you quote does not answer your question. It presents an argument based on whether a regulatory scheme exists (step 1) and whether the charges imposed serve to alter behavior (step 2). It's easy to come up with examples which do answer your question: a large part of tax revenue (especially in Europe) is used to finance social welfare programs, including direct payments to individuals. As an aside, a government literally keeping tax money (beyond personal compensation packages) is probably not what you have in mind.