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 ?
Our estimation results are consistent with the important impact of various policy factors on property tax delinquency, such as enforcement, homestead/non-homestead status, taxable value, statutory tax rate, the assessment ratio, and police response times.
Singapore imposes a corporate statutory tax rate of 17% and offers a productivity and innovation credit that allows a 400% superdeduction on certain qualifying R&D expenses up to SGD $400,000; 100% and 150% superdeductions on certain expenses above SGD $400,000; a nontaxable cash payout option for up to SGD $100,000 of qualifying expenditures; and a tax deferral option.
If Company Z has earnings of $100,000, a statutory tax rate of 39.
Contents Top Tax Rates Since 1945 Top Statutory Tax Rates and the Economy Methods Saving and Investment Productivity Growth Real Per Capita GDP Growth Top Statutory Tax Rates and the Distribution of Income Concluding Remarks Appendixes Appendix.
Despite differences in the levels and amounts of reported book and taxable income across time, the figures reporting aggregate financial statement and taxable incomes across statutory tax rate brackets appear quite similar, regardless of the income measure under examination; the highest amount of aggregate income (financial statement or taxable income) is concentrated in the 35-percent statutory tax bracket (taxable income over $18.
For example, in the last 50 years there have only been nine changes of top statutory tax rates for ordinary income of C corporations (the most important tax variable for firms).
Statutory corporate tax rates 2007 2008 Municipal multiplier 200 400 490 200 400 490 Composite statutory tax rate 33.
012 for the statutory tax rate, and statistically zero for METR.
This study focuses on six tax-law changes included in the Tax Reform Act of 1986: two changes in tax rates (a decrease in the statutory tax rate and an increase in the capital gains tax rate); one change in tax rate and the calculation of taxable income (implementation of an alternative minimum tax); and three changes to tax credits (elimination of the investment tax credit; computation of the available research and development [R&D] tax credit; extensive changes to the foreign tax credit).
Gravelle (1994) characterizes a tax rule as neutral when an investment's after-tax rate of return equals the product of its pre-tax rate of return and 1 - t, where t is the statutory tax rate.
Early capital structure literature assumed all firms faced the top corporate statutory tax rate when considering the debt interest tax shield (Miller 1977).
For this reason, the effective tax rate on investment can differ substantially from the statutory tax rate.