Tax Rate

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Related to Tax Rate: Income Tax Rate

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 ?
Laser-focused on providing broader coverage and a greater level of precision, BNA Sales Tax Rates helps address this administrative nightmare by reducing errors, alleviating audit risk and eliminating under or overpayment of sales tax.
Northbridge will keep a single tax rate, because most taxable properties in town Co 86.
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generally when a child is 16); (2) assets and/or income held and/or earned by students are treated less favorably than if held and/or earned by parents; and (3) assessments calculated at a marginal financial aid assessment rate have a similar wealth-reducing effect as income taxes calculated at a marginal income tax rate.
And, coupled with low property tax rates, these communities continue to attract development that keeps their economies--and their schools--vibrant.
Finance Minister James Flaherty said recently, "[Canada] must establish a meaningful, marginal effective tax rate advantage .
In general, for clients who expect their marginal tax rate in retirement to remain the same as it is currently, a 401(k) or a deductible IRA is equivalent to a Roth IRA.
But the panel is considering applying higher tax rates on newly introduced third-category beer products as part of efforts to narrow tax rate differentials between alcohol products, they said.
It's the legacy of an era when tax rates went as high as 70% and the tax code was full of loopholes for the wealthy," according to Mark Luscombe, CPA, attorney, and principal Federal tax analyst for CCH.
When a state's tax rate becomes excessive, it ends up losing not only the increased taxes it was hoping to get, but the existing taxes it had been getting as commerce moves elsewhere.