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 ?
Tax rates were also added to the LS (1995) and CG (2001) models and perform the similar maximum likelihood estimate.
Of those 100 companies, only one is actually paying a negative overall tax rate and is therefore due a discrete net tax benefit: General Motors Company.
Analysis of the structure of particular tax rates in each of the mentioned methodological groups,
The responsibility for coming up with such a plan rests with the City Council because, after all, it is the body that sets the tax rates each year.
This column indicates whether targeted (nonbasic) corporate tax rates exist (e.
An analysis by NHBR of the amount 13 locally based, publicly traded companies paid in taxes in fiscal year 2010 shows they had an average effective tax rate of 24 percent.
To make an informed judgment about whether or not the progressive income tax has been more or less a force for economic justice during various historical periods, it is important to have some notion of what levels of marginal and average tax rates have applied in the past.
The gain is subject to a 50% financial aid assessment (after deductions and allowances) and a 5% marginal income tax rate.
A Chicago Reporter analysis of the Illinois State Board of Education data shows that school districts with the lowest property tax rates generated much more in local revenue per pupil than those with property tax rates two, three, and even five times higher.
In budget legislation announced last May, the Government introduced proposals to (1) reduce the corporate income tax rate from 21 percent to 19 percent over a period of years through 2010 and (2) eliminate the corporate surtax by 2008.
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.