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.

G. L. MAR’IAKHIN

References in periodicals archive ?
Due to the nature of the DEA efficient frontier, marginal rates are not uniquely defined in the extreme efficient units on the frontier and hence, we should calculate the marginal rate of substitution to right and left.
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After April next year, he reports that those over 55 will be able to access the entirety of their pension funds, subject to income tax at marginal rates.
Corporate-level tax S corporation C corporation Taxable income 0 $2,000,000 Marginal rate n/a 28% Tax 0 $560,000 Individual-level tax Taxable income $2,000,000 0 Marginal rate 35% n/a Tax $700,000 0 Total tax $700,000 $560,000 Corporate-level tax S corporation C corporation Taxable income 0 $2,000,000 Marginal rate n/a 28% Tax 0 $560,000 Individual-level tax Taxable income $2,000,000 0 Marginal rate 35% n/a Tax $700,000 0 Qualified dividends tax Qualified dividends 0 $250,000 Gualif led dividends rate 15% 15% Tax 0 $37,500 Total tax $700,000 $597,500
Key words: Economic analysis, marginal analysis, marginal rate of return.
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That represents a small decline from a marginal rate of 0.
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