Tax Rate

(redirected from Statutory tax rate)
Also found in: Dictionary, Thesaurus, Legal, Financial, Acronyms.
The following article is from The Great Soviet Encyclopedia (1979). It might be outdated or ideologically biased.

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

The Great Soviet Encyclopedia, 3rd Edition (1970-1979). © 2010 The Gale Group, Inc. All rights reserved.
References in periodicals archive ?
H5-Property owners facing higher statutory tax rates are more likely to be delinquent.
Canada offers combined federal and provincial corporate statutory tax rates from 17.5% to 31%, along with a tax credit equal to 20% of expenditures related to scientific research and experimental development.
Advocates of lower statutory tax rates argue that reduced rates would increase economic growth, increase saving and investment, and boost productivity.
We then determine the statutory tax rate that corresponds to the increased taxable income figure.
* they do not believe a firm can sustainably outperform its statutory tax rates; and
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).
Prior to the 2008 reform, reduced statutory tax rates for the local trade tax (Gewerbesteuermesszahl) applied to individuals and partnerships with profits up to 72 500 [euro] (abolished in favour of a uniform rate of 3.5% with the reform).
At a rate of 50%, the top statutory tax rate also appears high by international comparison (EU-15 average: 46%, average of the 10 new EU member states: 35%).
Assuming a 35% statutory tax rate and a 10% discount rate, the MTR applicable to export profits in 2004 is determined as follows:
The United States has tax treaties with many countries, which may reduce the statutory tax rate for income paid to U.S.
(1994) (KETR and CETR, respectively) for the period 1970-2001, as well as METR, AETR, and statutory tax rate calculations of Devereux et al.