Tax Rate

(redirected from Marginal rates)
Also found in: Dictionary, Thesaurus, Legal, Financial.
Related to Marginal rates: Marginal tax rate, Effective tax rate, Average tax rate

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 ?
Again the first 25% will be tax free and the rest taxed at your marginal rate.
Finally, the overall size of pension savings that can be taken as a lump sum ('trivial commutation') has been increased to PS30,000 from PS18,000, meaning those with total pension amounts of up to PS30,000 will be able to take out the entire amount as a lump sum with 25% paid tax free and the balance at their marginal rate of income tax.
While economists have not reached a consensus on the responsiveness of income to the marginal rates for high-income earners, there is some support for the idea that this behavioral effect may be important and therefore costly to the economy.
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.
For the aggregator function in (1), consumers' marginal rate of substitution between any two goods, [c.
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.
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.
Europe will launch a virtuous circle in 2001, started last year by Germany's cutting marginal rates in corporate and personal income taxes, and continued by eliminating capital gains tax on the sale of corporate cross shareholdings.
If increase in betting turnover during term, extra amount to be levied at marginal rates up to growth level of 5 per cent, to produce total yield of some pounds 63m.

Full browser ?