A report on Flat tax, Progressive tax and Tax
A flat tax (short for flat-rate tax) is a tax with a single rate on the taxable amount, after accounting for any deductions or exemptions from the tax base.- Flat tax
A progressive tax is a tax in which the tax rate increases as the taxable amount increases.- Progressive tax
Implementations are often progressive due to exemptions, or regressive in case of a maximum taxable amount.- Flat tax
Some levy a flat percentage rate of taxation on personal annual income, but most scale taxes are progressive based on brackets of annual income amounts.- Tax
The act was signed into law by President Abraham Lincoln, and replaced the Revenue Act of 1861, which had imposed a flat income tax of 3% on incomes above $800.- Progressive tax
2 related topics with Alpha
Income tax0 links
An income tax is a tax imposed on individuals or entities (taxpayers) in respect of the income or profits earned by them (commonly called taxable income).
The tax rate may increase as taxable income increases (referred to as graduated or progressive tax rates).
The tax systems vary greatly and can be progressive, proportional, or regressive, depending on the type of tax.
Tax rate0 links
In a tax system, the tax rate is the ratio (usually expressed as a percentage) at which a business or person is taxed.
In case of tax brackets, commonly used for progressive taxes, the average tax rate increases as taxable income increases through tax brackets, asymptoting to the top tax rate.
With a flat tax, by comparison, all income is taxed at the same percentage, regardless of amount.