Tax Rate


Also found in: Dictionary, Thesaurus, Medical, Legal, Financial, Wikipedia.
Related to Tax Rate: Income 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.

G. L. MAR’IAKHIN

References in periodicals archive ?
The long-term capital gains tax rate is a constant fraction ([alpha] = 0.
According to WalletHub's analysis, these 15 companies - General Motors included - pay the lowest overall tax rates.
Comparison of their specific features and the appropriateness of using them in relation to statutory corporate tax rates,
You need a more competitive environment, and gradually over time you may want the lower the tax rate for business.
This column shows the basic subcentral (combined state/regional and local) statutory corporate income tax rate, inclusive of subcentral surtax (if any).
In their annual filings, corporations figure out their effective tax rate internally, and they often include what they pay to states and localities (net of deduction).
Determining the impact of income tax rate cuts on employment, savings, and productive capacity is difficult and controversial, as is accounting for the deadweight loss.
The gain is subject to a 47% financial aid assessment (after deductions and allowances) and a 15% marginal income tax rate.
A Chicago Reporter analysis of the Illinois State Board of Education data shows that school districts with the lowest property tax rates generated much more in local revenue per pupil than those with property tax rates two, three, and even five times higher.
In comparing the competitiveness of the Canadian tax system with other jurisdictions, the Government has focused on aligning Canada's tax rate structure and capital recovery provisions with other countries' rules.
If the client's expected tax rate will be lower in retirement, though, it's better to invest in a 401(k) or a deductible IRA to the extent eligible instead of a Roth IRA.
The LDP Research Commission on the Tax System hopes the planned regrouping of liquor tax rates will help narrow tax-rate differences between alcoholic beverages, each of which carry different tax rates based on their raw materials and method of production.