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 ?
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.
The marginal rate of substitution between any two factors diminishes as one factor increases.
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.
He says it should be remembered that offshore bonds work on the basis of tax deferral rather than being tax free, and any investment gains made at the time of surrender will be taxed at the investors' marginal rate.
That represents a small decline from a marginal rate of 0.
With 2010 tax rates for a person filing a joint return as a married person, the 35% marginal rate occurs at incomes over $373,650.
The tax relief reduced the marginal rate for every income tax bracket and included cuts to capital gains and the estate tax or "Death Tax.
There will be no distinction between long-term and short-term gains and all income will be added to the investor's income for the year and taxed at the marginal rate.
A new KPMG report explains why: South Africa has one of the most severe tax regimes in the world: its marginal tax of 40% is over 10% higher than the global norm and the marginal rate takes effect at a lower level than most other countries.

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