Lump-Sum Tax

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Lump-Sum Tax

A tax in which the taxpayer is assessed the same amount regardless of circumstance. An example of a lump-sum tax is a $55 fee on all employees who work in a township. Another example is tag fees on vehicles, which are the same regardless of the income of vehicle owners. Lump-sum taxes are regressive, meaning persons with lower income pay more as a percentage of their income.
References in periodicals archive ?
We will propose to increase profits on real estate renovation from 10 to 15 percent and this will secure LL350 billion and taxes on lump sum taxes," Safadi explained.
Yet at the same time, lump sum taxes on wine were raised, compensating for SCT's elimination.
Because lump sum taxes do not influence behavior, they are considered nondistorting.