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 ?
A winter fuel payment is an annual lump-sum tax free payment paid to most older people during the winter months.
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.
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 the government can observe each agent's type [theta], a lump-sum tax can depend on [theta].
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.
The critical economic decision that helps small enterprise development is to introduce lump-sum tax that is fixed for a substantial period for small business, so small businesses have only one relationship with government, paying the lump sum tax, one a year, and not being subject to inspections or certification or licensing.
One may now turn to the optimization problem when a lump-sum tax is unavailable, forcing the authorities to tax commodity demands and factor supplies.
This is true even if a lump-sum tax is generally perceived as the most efficient form of taxation.
Structuring their sales stretches the tax burden to multiple years, instead of one lump-sum tax payment owed in the year of sale.
t] is realized through an increase in period t lump-sum tax, [L.