Break-even tax rate

(redirected from Break-Even Tax Rates)

Break-even tax rate

The tax rate at which a party to a prospective transaction is indifferent between entering into and not entering into the transaction.

Break-Even Tax Rate

The tax rate at which it would neither be advantageous or disadvantageous for a company to conduct a certain transaction. This allows the investor or business to consider the potential transaction on its own merits, rather than basing the decision on whether it increases or decreases one's tax liability. See also: Going Galt.