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 ?
which high marginal rates may cause high-income taxpayers to work less.
We show that binding supporting surfaces of production set in an efficient point can be used to define marginal rates of substitutions and hence we may calculate different marginal rates in efficient points.
Thus, we see that the average rate of return is the weighted average of the preceding marginal rates of return, and that at the first step, the two rates of return are equal.
They find no evidence that the large swings in marginal rates had an important impact on investment in new machinery, commercial and industrial construction, or the costs of financing government versus private investment, but suggestive evidence that they may have affected business formation.
The tax relief reduced the marginal rate for every income tax bracket and included cuts to capital gains and the estate tax or "Death Tax.
The week before the federal budget, the Age carried a front page story on Parliamentary Library research showing many more taxpayers were finding themselves paying the top marginal rate compared with thirty years ago.
L] given the two countries' equal marginal rates of transformation in Equation (5) of the paper.
Lame-duck Democratic Governor Tony Knowles suggested an income tax based on the federal system, with generous exemptions and marginal rates on taxable income ranging from: percent up to as high as 7.
The conclusion drawn by Brownlee is that the rich can be taxed at very high effective rates during times of national emergency, but that at other times their political clout ensures that effective rates are much lower than marginal rates.
Generally, marginal rates were increased and brackets lowered before both world wars.
As shown in Table 5, the observed number of intervals for the sample ranges from one to eleven with marginal rates ranging from zero to two percent.
He favors progressive rates in which those who make the most pay higher marginal rates, but he faults liberals for giving short shrift to classical economic theorists who say that lower rates will bring greater wealth, more opportunities, and more overall income.

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