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 ?
In New York, a $1 million commercial property faces an effective tax rate that is 4.
Late last year, RILA commissioned a Pricewaterhouse-Coopers study highlighting the disparities in the effective tax rates industries pay.
The effective tax rate on the income of the French CFC is 34%.
corporations that report high foreign profits and low effective tax rates.
According to one study, the effective tax rate has shrank to close to 10 percent.
The bad news is that the variation in marginal effective tax rates on capital across business activities has been increasing since 2006, resulting in an inefficient allocation of resources.
However, to convey some of the differences among middle-income households, this article will examine effective tax rates for certain groups in the middle quintile, such as the elderly and households with children.
However, the effective tax rates applied to the energy products concerned, and to electricity, cannot be less than 50% of the relevant EU minimum rates as from 1/1/2007
Although the share of pre-tax income for the middle three quintiles declined, lower effective tax rates and robust income growth resulted in higher average after-tax income in 1997 than in 1979.
Phaseouts of itemized and IRA deductions and personal exemptions are examples of hidden tax rates which add to effective tax rates, Mares said.
We believe a supply chain is truly optimized only when: customers are "delighted" with products and services; total supply chain costs and cycle times (to buy, make, move, and sell the product) are at lowest and fastest possible levels; the supply chain is contributing to profitable sales growth; worldwide effective tax rates are at lowest possible levels; capital efficiency (working and fixed) is at lowest possible levels; and the supply chain is able to respond to changes faster than its competitors.

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