Tax Rate

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Tax Rate

The amount of charges imposed by the government upon personal or corporate income, capital gains, gifts, estates, and sales that are within its statutory authority to regulate.

Tax rate schedules are utilized by taxpayers whose taxable incomes exceed certain designated amounts. Separate schedules are provided for married individuals who file jointly, unmarried people who maintain a household, single people, estates, trusts, and married couples who file separate returns.

Cross-references

Income Tax; Taxation.

West's Encyclopedia of American Law, edition 2. Copyright 2008 The Gale Group, Inc. All rights reserved.
References in periodicals archive ?
In mathematical economics, marginal rate of substitution is employed to calculate the relative marginal utility.
At each constant product, it is evident that there will be a similar shape, in that the marginal rate of substitution diminishes throughout.
In addition as part of a tax planning exercise to avoid a potential 55 per cent tax charge on death, individuals were withdrawing income up to the maximum limits subject to their marginal rate of tax, usually 40 per cent, to avoid these excessive tax charges on death.
The new rules come into force in April 2015 with the pension freedoms outlined in the Budget, which mean all pension savers aged 55 and over will be able to draw down from their pension fund at their marginal rate of income tax.
After April next year, he reports that those over 55 will be able to access the entirety of their pension funds, subject to income tax at marginal rates.
This can be a statutory marginal rate or an effective marginal rate.
Camp has said he wants to clear out deductions, exclusions and other long-time tax code subsidies enough to lower individual taxes to a top marginal rate of 25 percent, down from the current 39.6 percent.
As a point of clarification, members need to be aware that cashing out annual leave has taxation implications depending on your current marginal rate, how close to the next marginal rate your salary is, and if the amount you are cashing out will take you into another marginal tax rate.
The top marginal rate for individuals is currently 35 percent for ordinary income and 15 percent for long-term capital gains.
And, Morton said, "if there is pressure from the business community to get a deal, not just to punt, but to get an actual resolution to some of the issues, then you may see the top marginal rate expire and go back to 39.6%."
And, Morton says, "If there is pressure from the business community to get a deal, not just to punt, but to get actual resolution to some of the issues, then you may see the top marginal rate expire and go back to 39.6 percent."

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