Tax Rate

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The following article is from The Great Soviet Encyclopedia (1979). It might be outdated or ideologically biased.

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

The Great Soviet Encyclopedia, 3rd Edition (1970-1979). © 2010 The Gale Group, Inc. All rights reserved.
References in periodicals archive ?
Effective Average Tax Rates on Investment, Tax Year 2018 2017 Law TCJA Difference All Corporate Investments Typically Financed 0.28 0.16 -0.12 Debt Financed 0.22 0.12 -0.10 Equity Financed 0.31 0.18 -0.13 All Noncorporate Investments Typically Financed 0.30 0.21 -0.09 Debt Financed 0.30 0.22 -0.07 Equity Financed 0.31 0.21 -0.10
One reason partnerships pay such a low average tax rate is that nearly half their income (45 percent) is classified as capital gains and dividend income, which is taxed at preferential rates.
The counterfactual values of the MT index, the K index, and the average tax rate are clearly close to the actual values, implying that the growth of average income, rather than the change in pre-tax income distribution, contributed to nearly all of the changes in the redistributive effect of PIT policy.
The policy effect reveals how average tax rates and income shares would have changed under constant pretax incomes but changing policy.
Although the figure shows that the extreme tax rate in A in the range 10 000-26 000 euro is higher than extreme tax rate in B, the incomes from this hypothetical range should be shown only in country A, due to the fact that benefits resulting from lower (in B) extreme tax rate are offset by the progression effect, that is application of average tax rate determined for total incomes to previous incomes from sources in country A.
Measurements of the effective tax rates on domestic investment include: the cost of capital, the effective marginal tax rate (EMTR), as well as the effective average tax rate (EATR).
Although the statutory top marginal tax rate was over 90% in the 1950s, the average tax rate for the highest income taxpayers was much lower.
The lowest-income earners have benefited the most from all tax law changes since 1979; the average tax rate declined by 1.3, 3.9, 4.2, 4.5, and 6.8 percentage points from the highest to the lowest quintiles, respectively.
The average tax rate will rise from 9.8% this year to 13.2% in 2013, Finance Minister Vitor Gaspar said last week.
"I believe its important to note before this begins that Romney is a millionaire and paid well below the average tax rate, paying only 13.9%," Lady Gaga wrote.
When one takes into account credits and deductions, says Scott Hodge of the Tax Foundation, "millionaires paid an average tax rate of 25 percent--more than three times the average tax rate for a family earning between $50,000 and $75,000.
This assumption will be inaccurate for individuals whose paychecks vary enough throughout the year that their average tax rate is not consistent from one paycheck to another.