tax rate

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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 ?
The Effect of Marginal Tax Rates on Taxable Income: A Panel Study of the 1986 Tax Reform Act.
Cruz's plan would significantly reduce marginal tax rates and the cost of capital, which would lead to a 13.
Highly variable marginal tax rates make optimal financial planning difficult.
Thus, there are four progressivity measures, low and high progressivity based on average tax rates (avtax_progresivty_low and avtax_progresivty_high), and low and high progressivity based on marginal tax rates (margtax_progresivty_low and margtax_progresivty_high).
The World Bank follows the methodology proposed by Koester and Kormendi (1989) to calculate the marginal tax rates by running rolling regressions between tax revenues and per capita income.
However, Padovano and Galli (2001) estimated effective marginal tax rates by regressing total government revenues on gross domestic product, over 10-year intervals; the coefficient then yields the change in revenue for a one-dollar change in output.
However, the relationship between changes in marginal tax rates and changes in income tax revenue are relatively weak.
It is important to recognize that although 35% is currently the highest statutory tax rate, a firm's marginal tax rate (the amount of tax that will be paid on the next dollar of income) could be significantly lower depending on level of taxable income, availability of tax credits and net operating loss carryforwards and carrybacks, the effect of alternative minimum tax, and other factors.
Failing to do so would tend to make land less valuable to those on higher marginal tax rates.
Tax Year 2003, under JGTRRA, saw additional rate reductions in ordinary marginal tax rates higher than the 15-percent rate, as well as expansions to particular income thresholds in the rates from 15 percent and below.
For consistency the derived rate has to be used in combination with Graham's (1996a) simulated marginal tax rates.
The adverse impact of the income tax is exacerbated because of its progressive structure, with marginal tax rates being greater than average tax rates.