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 ?
The same tax-rate-disparity test is applied by comparing the effective tax rate in the country where the sales were made and the effective tax rate in the country where the manufacturing activity occurred.
Companies argue that by including deferred taxes in figuring out an effective tax rate, there will be fewer swings in that rate from year to year, and shareholders get a better idea of what it pays in taxes.
And while Saskatchewan increased the basic personal income tax exemption significantly in late 2008, this had little impact on the effective tax rate on labour, despite the significant revenue cost to the province.
Because M&E is a permanent book/tax difference, increasing deductible expenses will reduce a company's effective tax rate, thereby increasing net income.
To obtain one set of values for the building, the judge ends up using Levy's effective market rents; deducts the excess from gross income: splits Levy's 10 percent vacancy rate; adjusts for advertising and leasing expenses by applying a $1 million-a-year rate when the actual cost was less than $3 million for the eight years; applies capitalization and effective tax rates to the NOI's (Net Operating Incomes); adds in a present value analysis for the unsteady tax escalation income; and adds in the present value of receiving the "excess" First Boston income.
Favorable trends in the management of the company's activities on a global basis have allowed us to reduce our effective tax rate," said Charles E.
bank tax and regulatory policies by developing a comprehensive measure of the overall marginal effective tax rate on commercial bank intermediation.
The conceptual framework of the annualized rental cost of capital and the marginal effective tax rate on capital income "facilitates the representation of the economically relevant features of highly complex tax statutes in a very succinct form" [p.
company financial statement effective tax rate being significantly above that of their foreign counterparts, the statutory corporate tax rate - the rate on which business investment decisions are generally premised - is currently the second highest in the OECD, and is more than 14 percentage points higher than the average for the rest of the OECD.
multinationals, in fact, have increased opportunities to lower their effective tax rate by moving profits from higher-taxed jurisdictions to lower-taxed ones, and to take advantage of legitimate non-U.
Tax departments may be measured by the overall effective tax rate, or tax savings, with no negative attribution for the resulting tax risk they generate, while senior management may be rewarded on the basis of high pre-tax net operating income, with no effect from tax consequences.
Upon adoption of FAS 142, a company should expect its effective tax rate to decline.

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