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 ?
Because the effective tax rate on the sale of product X is only 12.
As a consequence, Google reported an effective tax rate of only 21.
Thus, a company's stated effective tax rate often changes after it realizes that it won't get the tax break it was expecting from previous years, or that it has just won a case with the IRS, so it can now record as a tax benefit deferred taxes that were too uncertain to be counted in the past.
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.
To calculate an effective tax rate, economists must also define an appropriate income measure.
However, the effective tax rate applied to heavy fuel oil used for district heating purposes cannot be less than 50% of the EU minimum rate as from 1/1/2007
Between 1979 and 1997, effective tax rates dropped for all income levels.
Accordingly, PORC business can add additional profits at perhaps a lower effective tax rate.
Increasing the tax deductible portion of M&E expenses also will reduce a company's effective tax rate and increase its net income.
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.
headquartered companies had an average financial statement effective tax rate of 27.

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