What Are Taxes?
According to the dictionary, a tax is [Websters86]
A charge, usually of money, imposed by authority on persons or property for public purposes, or a sum levied on members of an organization to defray expenses.
There are many different kinds of taxes: sales taxes, property taxes, excise taxes, and so on. The amounts and timings of these taxes are either known in advance or can be easily estimated from other information known about the proposal. These taxes can simply be included as expense cash-flow instances along with all of the other cash-flow instances in the proposal.
Income taxes are an entirely different matter. Even the term income tax is misleading because it's not really a tax on income. Referring back to Figure 2.1 ...
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