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 ?
Effective Rate Review Program via Changes: States that made changes to rate review statutes or regulations after the ACA was enacted to become effective rate review programs.
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The general theme is to use deductions against income taxed at the highest effective rates.
An agreement also provides a method to reconcile the effective rate with a taxpayer's actual use tax liability.
Currently, Class IIa is taxed at an effective rate of 1.
Department of Health and Human Services (HHS) awarded Wisconsin $1 million under the Health Insurance Premium Review - Cycle I grant to enable OCI to establish an Effective Rate Review Program.
To determine whether there is a disparity between the effective rate at which the hybrid branch payment is taxed to the payee and a hypothetical tax rate that measures the payor's tax savings from the deductible payment, the percentage tests provided in Regs.
This RFP requests professional advice as well as services in analyzing and developing a methodology for calculating the effective rate of interest based on the statutorily mandated factors.
Under the constant-yield method, interest is accrued by applying an effective rate of interest to the unpaid balance of a loan for a given period.
Compared to other solutions in the market, ECI's 10G LAN solution is unique in that it transparently maps full rate 10G LAN signals to full OTN line rate, without compromising the Ethernet transmission by not overriding important bytes and without limiting the effective rate.
1 percent effective rate on payroll taxes, instead of the usual effective rate of 0.

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