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 ?
Historical tax tables were then used to calculate average and marginal tax rates.
When applying these rates, Graham's (1996a) simulated marginal tax rates have to be utilized, accounting for the uncertainty of tax shield usability.
Firms with low marginal tax rates are those that are experiencing recurring financial losses or financial hardships and such firms may be in need of the benefit to a greater extent than their more profitable counterparts.
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.
Supply-side economics brought the insight that marginal tax rates enter directly into the cost of capital (Robbins, Robbins, and Roberts 1986).
In the context of marginal tax rates, a lot of discussion is being made in Japan about personal income, and I think that is a very fertile field,'' he said.
In contrast, state marginal tax rates in this income range varied considerably (from 0 to 12%), and the state income tax's share of the total income tax rate was substantially higher than in earlier periods.
As it was pointed out by two economists for the American Enterprise Institute, for typical families with incomes between $10,000 and $120,000, the marginal tax rates bear a strong resemblance to the New York City skyline.
Table 1 suggests that for those taxpayers at the highest marginal tax rates the after-tax yield on municipals far exceeded the after-tax yield on treasuries.
Wanniski wrote for CE arguing that economic growth needs to be centered on the incentives to produce derived from low marginal tax rates and not on cozy big business/government partnerships.
And so, in the spirit of historical inquiry, I set out to compare a century's worth of data on economic growth with the marginal tax rates on the top bracket of income and the capital gains taxes in the same periods.
This commission's report, issued in July, 1987, acknowledged that compliance improves when marginal tax rates decline and deteriorates when tax rates increase.