tax rate

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Related to Marginal effective tax rate: Average tax rate

Tax rate

The percentage of tax paid for different levels of income.

Tax Rate

A percentage of one's income that one must pay in taxes. Tax rates vary according to incomes. That is, one who makes $100,000 per year usually has a higher tax rate than one who makes $25,000. See also: Marginal tax rate, Average tax rate.

tax rate

The proportional amount of taxes paid on a given income or the given dollar value of an asset. If the tax is calculated on the basis of total income, it is the average tax rate. If the tax is calculated only on extra units of income, the rate is the marginal tax rate.

tax rate

the percentage rate at which a TAX is levied on income or expenditure. Tax rates are varied by government on social grounds (to redistribute income) and, as part of FISCAL POLICY, to increase or decrease spending.

tax rate

The percentage used to calculate various taxes.

References in periodicals archive ?
Marginal effective tax rates can be calculated as follows:
Even taking into account recent reforms to curb the marginal tax burden, second earners in families with children continue to face marginal effective tax rates that are high by OEGD standards (Table 4.
Note that the marginal effective tax rate tends to be much lower than the measured average tax rate; this despite the inclusion of the cost of reserve requirements and deposit insurance premiums in the marginal rate but not in the average rate.
Policy changes in the 1980s generally broadened income tax base, reduced tax rates, and narrowed marginal effective tax rates to greater or lesser degree.
Be attentive to the effects of disincentives to acquire human capital resulting from high marginal effective tax rates for below-average income persons.
Overall, the 2009 marginal effective tax rate on labour, including personal income, payroll and sales taxes (indicating the share of workers' earnings available for consumption), barely changes: 45.
The marginal effective tax rate is thus the tax wedge between the net and gross of tax cost for each input.
Taking into account the elimination of the federal capital tax on large non-financial corporations and some of the provincial tax changes that have been legislated (except for Ontario's), by 2010 Canada's marginal effective tax rate will decline almost 2 percentage points to 37.
For lower-income retirees, marginal effective tax rates on taxable pension income are very high: the combined effect of income taxes and clawbacks of federal and provincial income-tested benefits such as the federal GIS and associated provincial supplements means that some low-income retirees can expect to pay marginal effective tax rates of as much as 80 percent on their PRPP savings.
Marginal effective tax rates on business investment have been cut sharply in recent budgets: the federal corporate rate is being reduced by a third and the federal capital tax (an inefficient tax on wealth) eliminated.
Ensuring inclusive labour markets, enhancing work attractiveness and making work pay for job-seekers, including disadvantaged people, and the inactive": job search assistance, provision of necessary social services and significant reduction of high marginal effective tax rates, notably for those with low incomes