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 ?
In general, we find consistent evidence of full shifting of gasoline taxes to the final consumer, with changes in gasoline taxes fully reflected in the tax-inclusive gasoline price almost instantly, a result consistent with a retail gasoline market in which firms are perfectly competitive and produce at constant cost.
Our dependent variable is the inflation-adjusted, monthly tax-inclusive retail price of unleaded gasoline in state i for time period t, measured in cents per gallon (or in its natural log).
The price reduction is aimed at helping consumers realize that tax-inclusive prices are not price hikes, the company said.
will offer sales incentive points to buyers based on tax-inclusive prices from Thursday, rather than prices excluding tax hitherto.
TOKYO - A new regulation on tax-inclusive pricing went into effect on Thursday, making it mandatory for retailers and service providers to display price tags that include the 5% consumption tax.
The franchise stores purchased gasoline at a tax-inclusive price from the taxpayer.
Under the new system, retailers are also required to display tax-inclusive prices on shelf signs, catalogues, and paper and Internet advertisements.
It would, for example, create confusion to have some goods and services sold at a tax-inclusive price while others are sold with taxes separately added to the invoice.