Surtax


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Surtax

An additional charge on an item that is already taxed.

A surtax is a tax on a tax. For example, if a person pays one hundred dollars of tax on one thousand dollars of income, a 5 percent surtax would amount to an additional five dollars.

References in periodicals archive ?
Tying up your funds: Tying up your funds into a mortgage may not fit your long-term financial plans, even though you might receive a higher return on your investment and potentially avoid a higher tax rate and the net investment income surtax.
If you're taking an IRA distribution beyond the required, you could effectively add to your ordinary income, which increases more of your surtax eligible investment income and could make you pay more taxes than you thought.
In the case of an individual, the surtax is (in addition to any other income tax) for each tax year 3.
He said if the town goes for a 3 percent surtax, there is no guarantee that down the road the state will match it dollar-for-dollar, so that makes the proposal "sketchy" at best.
3200, approximately $544 billion in revenues would be raised through a surtax of 5.
The White House has not expressed a position on the surtax, but lawmakers said they had heard no objections so far.
Since many of these firms are pass-through entities that pay individual tax rates, they could be hit with a double tax increase (see surtax above).
In budget legislation announced last May, the Government introduced proposals to (1) reduce the corporate income tax rate from 21 percent to 19 percent over a period of years through 2010 and (2) eliminate the corporate surtax by 2008.
He then considers similar approaches to other issues, including a consumption surtax with a very high exemption as a supplement to the personal income tax and a progressive value-added tax, combining conservative preferences for consumption taxes with liberal preferences for progressive taxes.