Implicit tax

Implicit tax

Lower or higher before-tax required returns on assets that are subject to lower or higher tax rates.

Implicit Tax

The cost of an activity that is not collected by the government but may be the result of government policy. For example, if the government is encouraging economic growth and accepting a high inflation rate, one may consider this an implicit tax on personal savings because inflation renders them worth less over time. An implicit tax should not be confused with an indirect tax, which is a different concept altogether. See also: Explict tax.
References in periodicals archive ?
The ACA's premium subsidies impose an implicit tax on work.
One effect was eliminating the implicit tax on reserves, which Milton Friedman (1959) initially recommended over fifty years ago.
We demonstrate that there is (stable and statistically significant) positive linear dependence between the implicit tax rate on capital (ITRC) and relative capital tax collection.
The PLTC program aims to increase private insurance coverage by reducing this Medicaid implicit tax and increasing an individual's likelihood of qualifying for Medicaid.
There is important indicator used by EUROSTAT--the implicit tax rate on energy showing the importance of energy taxation in energy sector and economy of the country.
This implicit tax increase is due to new tax credits that are withheld from full-time employees who are offered affordable health coverage by their employers.
The implicit tax rates sometimes exceed 100 percent
medical schools and teaching hospitals, by the way that social insurance programs pay for care, and by the implicit tax on low-quality care that results from licensure rules for physicians, nurses, and other health-care providers.
This disparity means that "a result of [energy efficiency] standards is to place an implicit tax on those individuals who are thought to have the highest discount rates: the less well off.
While the statutory tax rate represent the signaling intention, the implicit tax rates show real rate corporation have to pay after all other tax deductions are calculated.
The average implicit tax rate (ITR) on consumption, which measures the real average tax burden on the revenue in question, rose from 19.
Revenue is projected according to the development of the respective tax base and with unchanged implicit tax rates.