Surtax


Also found in: Dictionary, Thesaurus, Legal, Encyclopedia, Wikipedia.

Surtax

A tax added to the normal tax paid by corporations or individuals who have earned income above a certain level.

Surtax

An additional tax placed on a person or corporation on a tax liability. For example, a government may calculate one's tax liability and simply add, say, 5% to it. Surtaxes are often politically unpopular. A surtax is also called a supertax.
Mentioned in ?
References in periodicals archive ?
Surtax on real property would also be a tool to redistribute income and wealth as it would improve tax equity, the NTRC said.
If companies are not permitted to pass on and through to the policyholder either or both the surtax or the "loan" costs, then these provisions of the Act must fail--and with the fall of either the surtax or the "loan" sections, the funding necessary to carry out the paying off of the JUA deficit and the replacement of the JUA are severely impeded.
Special consideration should be given whenever the estate or trust owns an interest in a passive activity, because income from a passive activity is subject to the 3.8% surtax. If the fiduciary materially participates in the activity, it might be possible to avoid having the activity labeled as passive.
The surtax will not apply because they have no net investment income.
IRA distributions, however, are factored into MAGI, so they can still trigger the 3.8 percent surtax if thresholds are met.
The super tax (surtax) as introduced in 1909, was removed in this year but replaced by higher rates of income tax for those with high incomes.
The Community Preservation Act also allows communities adopting the program to remove the first $100,000 to $200,000 of assessed property valuation before computing the surtax.
Some of these developments have become live political issues in recent months, as shown by President Obama's proposal to tax Americans making more than $1 million a year at a minimum rate of 30 per cent (the "Buffett rule") or the Ontario NDP's insistence on a surtax on the rich as a condition for supporting the minority Liberal government's budget in April.
(Among them is a new 3.8% Medicare "surtax" that will apply to all taxpayers whose income exceeds a certain threshold amount.
For example, while employment taxes (FICA) are being reduced for 2011, top taxpayers will experience a significant increase in employment taxes in 2013, an increased Medicare rate on wages (0.9%) and a Medicare surtax on unearned income (3.8%).
Tom Harkin (D-Iowa) and Sheldon Whitehouse (D-R.I.) put forward a new proposal--the Responsible Estate Tax Act--that will permanently fix the estate tax by combining the 2009 exemption levels with progressive rates for larger estates, including a new billionaires surtax.