income tax

Income Tax

A tax on any money earned during a fiscal year, usually filed on a yearly basis. All businesses except partnerships must file an annual income tax return. Partnerships file an information return.

Notes:

Essentially a direct tax on any income, this includes capital gains, wages, etc.

See also: Capital Gain, Conduit Theory, Income, Income Shifting, Internal Revenue Service (IRS), Laffer Curve, Surtax, Taxable Gain

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Income tax

A state or federal government's levy on individuals as personal income tax and on the earnings of corporations as corporate income tax.

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income tax

A tax levied on the annual earnings of an individual or a corporation. Income taxes are levied by the federal government and by a number of state and local governments. One set of rules applies to individual income and another to corporate income. The size and structure of an income tax greatly influence security prices and investor decisions.