GEOLOGY 002 Lecture Notes - Lecture 15: Tax Rate, Tax Bracket, Regressive Tax
Document Summary
It is parametric: it is governed by legislation. taxes, then the average tax rate is 15% Summary introduction to fiscal economics: all key terms and concepts. Formal definition of a tax: compulsory payments, exacted by the state, that do not confer any direct individual entitlement to specific goods or services in return. Informal definition of a tax: the money taken from the society by the government. Key characteristic of a taxation in modern tax systems: Tax base: the total amount of assets or revenue that a government can tax. Tax rate: the ratio at which a person or business is taxed. Direct taxation: a tax that is paid directly to the government (income tax) Indirect taxation: a tax collected by an intermediary from the person who bears the burden of the tax (sales tax, vat, per unit tax) Marginal tax rate: the percentage of tax applied to your income for each tax bracket in which you qualify.
