A report on Progressive tax, Tax and Taxable income
A progressive tax is a tax in which the tax rate increases as the taxable amount increases.- Progressive tax
Taxable income refers to the base upon which an income tax system imposes tax.- Taxable income
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
Many systems impose tax at different rates for differing types (e.g., capital gains or salaries) or levels of income (e.g., graduated rates).- Taxable income
For example, a person in the U.S. who earned US$10000 US of taxable income (income after adjustments, deductions, and exemptions) would be liable for 10% of each dollar earned from the 1st dollar to the 7,550th dollar, and then for 15% of each dollar earned from the 7,551st dollar to the 10,000th dollar, for a total of US$1122.50.- Progressive tax
It is used to illustrate the concept of taxable income elasticity (that taxable income will change in response to changes in the rate of taxation).- Tax
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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).