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 ?
Under current law, tax rates on dividends and capital gains are 0 percent for taxpayers in the 10 and 15 percent marginal tax rate bracket; 15 percent for taxpayers in the 25,28, and 33 percent brackets; and 20 percent for taxpayers in the highest tax brackets, along with a 3.
For this analysis an "effective" marginal tax rate (69) must be employed which takes into account both tax and nontax effects due to changes in income.
Thus, there are four progressivity measures, low and high progressivity based on average tax rates (avtax_progresivty_low and avtax_progresivty_high), and low and high progressivity based on marginal tax rates (margtax_progresivty_low and margtax_progresivty_high).
The aim of this sub-section is to model the relationship between the marginal tax rate and the revenues it generates, and to derive a tax rate that would maximize this revenue within the countries group under investigation.
However, he only asks whether the growth rate of real per capita GDP was different in years in which the top marginal tax rate changed.
There is, however, a stronger connection between marginal tax rates
I also assume that the marginal tax rate on investors in land is 30%.
Figure C presents the amounts and percentages of modified taxable income and income tax generated (before reduction by tax credits, including the earned income credit) by the marginal tax rate categories (defined in the Income and Tax Concepts).
As per the definition, the marginal tax rate includes the uncertainty of tax shield usability, since it is defined via the present value of current and expected future cash flows paid to tax authorities due to earning one additional dollar of taxable income (Shevlin, 1990, pp.
The 15 percent marginal tax rate, however, shows how much the personal income tax reduces incentives to earn more income by working more or harder or saving and investing.
Robin expects to be in the 25% marginal tax rate bracket in 2009 and 2010.
Yet all Democratic presidential candidates are styling themselves "fiscal conservatives" and none have suggested raising the marginal tax rate on the richest above the 38 percent rate it was at under Bill Clinton (it's now 35 percent, and the richest of the rich--the hedge-fund managers, private-equity managers, and venture capitalists--are paying only 15 percent, since their earnings are treated as capital gains).