Tax Rate

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Tax Rate


the amount of tax levied per unit of taxation, for example, per hectare of land or per ruble of income.

The tax rate expresses the norm of tax collection and is set by legislation. Tax rates may be fixed, proportional, progressive, and regressive. Fixed tax rates are established as an absolute sum per unit or object taxed, regardless of the amount of income, and are ordinarily used in taxing small plots of land. In the USSR, fixed rates are applied in collecting the agricultural tax on the private plots of kolkhoz members. Proportional tax rates are set at a definite percentage of income, regardless of the total amount. In the USSR, for example, proportional rates are used to levy an income tax on the income earned by consumer cooperative societies.

Progressive tax rates increase as the amount of taxable income increases. A distinction is made between simple and complex, or sliding, progressions. Under a simple progression, the rate increases with the amount of taxable income and is applied to the total amount of income or total value of the object being taxed. Under a complex progression, the rate increases only for the portion valued in excess of a predetermined preceding step. Progressive rates are used primarily in the levying of income taxes on the populace of the USSR and foreign countries.

Regressive tax rates diminish as the amount of income increases. Regressive taxation is clearly seen in the mechanism of indirect taxes on consumer goods that exists in every capitalist country. Under capitalism, special tax rates are frequently used to give certain advantages to large companies and corporations.


References in periodicals archive ?
This study differs from other studies on the taxation of commercial banking in that it estimates the marginal effective tax rate on commercial bank intermediation.
Once the user cost of capital is derived, the marginal effective tax rate can be calculated from the difference between the before-tax return on investment and the after-tax rate of return earned by the investors who financed the investment.
7 percentage points in marginal effective tax rate on capital, of which 80 percent can be attributed to harmonizing its sales tax with the federal GST.
Taking into account budgetary changes in 2009, as well as those legislated in earlier budgets to take effect by 2009, the marginal effective tax rate on capital in Canada has declined from 28.
One development was the growing consensus among tax economists and policy analysts that capital taxation reform should focus on equalizing marginal effective tax rates among different types of assets so as to end severe tax nonneutrality significantly affecting efficiency of capital allocation through distortion by uneven investment incentives.
Policy changes in the 1980s generally broadened income tax base, reduced tax rates, and narrowed marginal effective tax rates to greater or lesser degree.
Figure 1 shows the federal and provincial components of the marginal effective tax rate, aggregated across all industries for each province, as expected by 2010.
Where T is the marginal effective tax rate on marginal cost for each mode and is a function of [t.
Western METRics: Marginal Effective Tax Rates in the Western Provinces" E-Brief.
Table 1: Marginal Effective Tax Rates on Production Capital, 2005 (percentages) Corporate Effective Tax Rate Income Tax rate Manufacturing Services Average China 24.
9) The fitted line for marginal effective tax rates and foreign direct inflows is shown in Figure 2, indicating a negative relationship between foreign direct inflows and effective tax rates.