Lump-Sum Tax

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 ?
For the sake of illustration, consider the effects of a hypothetical 10 per cent reduction in labour taxes paid for by a lump-sum tax modeled using a neo-classical Ramsey growth model - a scenario that I detailed in a recent paper on Rethinking Macroeconomics.
It is an annual lump-sum tax free payment paid to most older people during the winter months.
When discussions reached Article 12, which has to do with imposing a lump-sum tax on imported containers, Gemayel also voiced his opposition.
When you're just starting out on your own, the last thing you want is a lump-sum tax payment you haven't prepared for.
11] be as in, respectively, (20) and (22), let the lump-sum tax at t = 0 be
The addition of an ad valorem tax will then cause the operator's per unit costs to increase, causing further distortions, rather than serving as a pseudo lump-sum tax that transfers the monopoly rents to the government.
economy, we generate steady state results for several alternative models for financing health insurance: one in which health insurance is financed primarily through employer contributions that vary with employment, a second where insurance is funded through a non-distortionary, lump-sum tax, and a third where insurance is funded by a payroll tax.
Chitoiu cited the 3 percent tax in microenterprises and the lump-sum tax for certain industries in the second quarter as tax simplification measures.
By contrast, in this article the planner optimally chooses inflation or deflation to achieve as much of the desirable redistribution as possible given that the choice of inflation or deflation provides only a partial substitute for a fully operational lump-sum tax and transfer scheme.
If F were a degenerate distribution concentrated at w = 1, for example, then a lump-sum tax would be Pareto superior in this sense to a commodity tax.
There would also be the potential for a lump-sum tax rebate depending on the timing and type of vehicles involved rather than a big tax bill.
There would also be the potential for a lump-sum tax rebate depending upon the timing and type of vehicles involved rather than a big tax bill.