Tax Rate

(redirected from Average tax rates)
Also found in: Dictionary, Thesaurus, Legal, Financial.
Related to Average tax rates: Marginal tax rates
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 It might be outdated or ideologically biased.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 ?
where y is the natural logarithm of the rate of nonagricultural self-employment; x is a matrix of observations on the explanatory variables described previously, which, other than the marginal and average tax rates, are in logarithms; [[Alpha].sub.i] is a country-specific constant term; [[Eta].sub.t] is a set of time dummies; and e is an error term.
Table 1 Effects of Government Ownership of Capital (only labor is taxed) Fraction of capital owned 0 2.5 Average tax rate 0.1059 0.1054 Standard deviation of tax rate 0.0074 0.0082 Average capital stock 0.1059 0.1061 Standard deviation of capital stock 0.0139 0.0141 Fraction of capital owned 5 10 Average tax rate 0.1049 0.1041 Standard deviation of tax rate 0.0089 0.0105 Average capital stock 0.1063 0.1066 Standard deviation of capital stock 0.0143 0.0147
Lockwood and Manning (1993) and others have suggested a decomposition of changes in the tax system into (i) a change in the marginal tax rate with the average tax rate held constant, and (ii) a change in the average tax rate with the marginal tax rate held constant.
Provided the growth of expenditure is curtailed as planned, the official three-year budgetary projections suggest that there will be room to lower the average tax rate. Government tax revenue is projected to drop to only 32.3 per cent of GNP in 1999, down from 33.7 per cent after the cuts introduced in the 1997 budget.
The fact is that in 1981, the average tax rate was 20.41% under the liability base and 20.56% under the payment base.
Clearly, TDS provides more spendable dollars (after tax) than ordinary savings (ACI) when the average tax rate is the same before and after retirement and the before-tax rates of return are the same.
The empirical analysis uses marginal and average tax rates and the progressivity of these rates as taxation variables.
(22.) For a discussion, see Aspen Gorry and Sita Nataraj Slavov, "Marginal and Average Tax Rates in Optimal Tax Policy," Tax Notes (April 1, 2013): 83-88.
(11) The increase in a state's own tax rate in response to a 10 percent increase in the average tax rate of its neighbors is smaller, about 0.5 to 0.6 percent, if we consider economic regions.
Average Tax Rates Education Level Wage Earnings Interest Award(12) High school 10.6% 14.5% 32.7% College degree 13.0% 22.3% 35.1% It is important to note that accurately accounting for the tax implications requires that some sort of tax function be used to compute the annual tax effects; the use of some sort of average rate based on the plaintiff's historic tax returns will not yield correct results.
The failure to reduce government spending relative to national output is the primary reason for the remarkable stability of average tax rates over the past 20 years.
Moreover, average tax rates do not reflect the burden of implicit taxes such as reserve requirements or deposit insurance surcharges.(2) When Fullerton and Henderson (1985) compare average and marginal effective tax rates for 18 industries, they find almost no correspondence between the two measures.