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 ?
In specific industries, the effective marginal tax rate on capital exceeds 56 percent.
In our 2009 study, Joel Slemrod, Seth Giertz, and I review the large recent literature on the effects of marginal tax rates on reported income.
This analysis varied the square footage of the home office, the total cost of the residence, and the marginal tax rate.
Hungerford runs regressions in which the dependent variable is the growth rate of real per capita GDP and the independent variables include the change in the top marginal tax rate, the change in the top capital gains tax rate, the change in the percentage of the population who are college graduates, the change in the population growth rate, and the change in the real federal current expenditures ratio (real federal expenditures divided by potential real GDP).
Higher marginal tax rates also provide a stronger incentive for production to go "underground" This is particularly true for the service sector and smaller businesses where it is much easier for transactions to be facilitated with cash so that some income can effectively be sheltered from taxes.
I also assume that the marginal tax rate on investors in land is 30%.
Returns with modified taxable income in the 15-percent (ordinary income) marginal tax rate bracket contained the largest share of returns for 2007, at 38.
Using today's exemptions and deductions would result in a 1913 taxable income of $6,467 with a marginal tax rate of 1 percent and an average tax rate of only .
They state that the marginal tax rate is a key determinant between tax benefits and tax deductions in the framework of increased depreciation deductions achieved by step-ups.
The benefit from the manufacturing deduction is determined by taking the excess of the maximum statutory tax rate over firms' marginal tax rate, multiplied by the product of estimated taxable income and 3 percent so long as the resulting figure does not exceed 50 percent of payroll expenses.
Although this income will not be tax-free for those who aren't in the lowest tax bracket, the effective tax rate on the withdrawal will still be low (basically the difference between the individual's marginal tax rate and the marginal rate for the lowest tax bracket for the relevant province).
It is often argued--especially in a US presidential election year--how much the highest marginal tax rate (HMTR) on personal income influences a nation's real or inflation-adjusted output, i.