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 good news is the couple would owe only another $.26 in tax on the $1 dividend (for a 26% marginal rate): Regular Tax AMT Adjusted gross income $193,401 $193,401 Standard deduction (7,350) none Modified exemptions (24,696) (34,150) Taxable income $161,355 $159,251 Gross tax liability $ 41,141 $ 41.405
agriculture, and the marginal rate of substitution of consumption for
For example, I can substitute a physician's time for my time in producing "good health." In our analysis, we have allowed wages and input prices to be equal among consumers, but, if there are differences in productivity among suppliers of labor, these should be reflected in the different wages and different marginal rates of transformation by type of consumer.
The marginal rate of residential land-use change for the 1970s was about one-third acre per household, 37 percent more than in the 1960s.
The 31% marginal rate is not intended to phase out the benefits of the 15% rate or exemptions and it is permanent.
The tax relief reduced the marginal rate for every income tax bracket and included cuts to capital gains and the estate tax more regularly referred to as the "Death Tax." If this relief is not extended, the tax on capital gains will increase from 15 percent to 20 percent and the Death Tax--which will not exist for the 2010 tax year--will spike back to its original level of 55 percent starting in 2011.
If you really want to boost consumer spending, you're better off enacting tax cuts and government spending that put money in the hands of the middle and lower classes--not cutting marginal rates.
The Institute for Research on the Economics of Taxation calculates that thanks to various phase-outs and credits in the tax code, marginal rates can jump to over 50 percent in some cases.
When 401 (k) plans were introduced in 1984, most executives took full advantage of the opportunity to defer current income (then taxed at marginal rates of over 50%) into the future, usually until retirement, when tax rates were expected to be much lower.
I suppose I did my share of bellyaching about marginal rates. .
No one knows how long the new rates will be in effect and future tax deductions are less attractive at lower marginal rates.
Shlaes also shows how our graduated income tax system, in which marginal rates rise with income, imposes an often large penalty when two earners get married.

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