Break-even tax rate

The tax rate at which a party to a prospective transaction is indifferent between entering into and not entering into the transaction.

Break-Even Tax Rate

The tax rate at which it would neither be advantageous or disadvantageous for a company to conduct a certain transaction. This allows the investor or business to consider the potential transaction on its own merits, rather than basing the decision on whether it increases or decreases one's tax liability. See also: Going Galt.

All content on this website, including dictionary, thesaurus, literature, geography, and other reference data is for informational purposes only. This information should not be considered complete, up to date, and is not intended to be used in place of a visit, consultation, or advice of a legal, medical, or any other professional.