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 ?
On our estimates, all regions operating under RAB (with a few exceptions) have seen much lower effective rates of return than the statutory rate of return provided by the regulator.
Apart from a premium for interest rate risk, implied fed funds futures yields should reflect expectations of the effective rate for the delivery month.
A reduction in the effective rate of corporate taxes, or the rate of taxes actually paid by companies, is a focal point in government studies on the proposal.
But the Finance Ministry argues the effective rate of Japan's corporate tax has already been cut to internationally acceptable levels.
The reduction in the overall marginal rates and the lowering of the effective rates for married taxpayers create a general rule for the use of the NOLs--an NOL should be used against income taxed at the highest marginal rate.
And finally, as an alternative to the present tax code with its high marginal tax rates (``counterproductive at best, perverse at worst''), he endorses a flat tax, arguing that while its marginal rate is flat, its effective rate is progressive when a personal exemption is taken into consideration.
That means capital gains will be taxed at an effective rate of 28.
Section 954(b)(4) of the Internal Revenue Code provides that income otherwise taxable under Subpart F may be excluded if the taxpayer establishes that such income was "subject to an effective rate of income tax imposed by a foreign country greater than 90 percent" of the U.
1 percent effective rate on payroll taxes, instead of the usual effective rate of 0.
A managed compliance agreement or effective rate agreement is a written agreement, generally entered into following the completion of an audit.
8 m), corresponding to an effective rate of taxation of 22.

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