flat tax
A tax whose rate remains fixed regardless of the amount of the tax base. • Most sales taxes are flat taxes. — Also termed proportional tax. Cf. progressive tax; regressive tax. [Cases: Taxation 1281. C.J.S. Taxation §§ 2035–2036.]
Search Results for: flat tax
regressive tax
A tax structured so that the effective tax rate decreases as the tax base increases. • With this type of tax, the percentage of income paid in taxes decreases as the taxpayer’s income increases. A flat tax (such as the typical sales tax) is usu. considered regressive — despite its constant rate — because it
alternative minimum tax
A tax, often a flat rate, potentially imposed on corporations and higher-income individuals to ensure that those taxpayers do not avoid too much (or all) income-tax liability by legitimately using exclusions, deductions, and credits. — Abbr. AMT. — Also termed minimum tax. [Cases: Internal Revenue 3550. C.J.S. Internal Revenue §§ 358–361.]
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progressive tax
A tax structured so that the effective tax rate increases more than proportionately as the tax base increases, or so that an exemption remains flat or diminishes. • With this type of tax, the percentage of income paid in taxes increases as the taxpayer’s income increases. Most income taxes are progressive, so that higher incomes
sales tax
A tax imposed on the sale of goods and services, usu. measured as a percentage of their price. — Also termed retail sales tax. See flat tax. [Cases: Taxation 1201.1–1345. C.J.S. Indians § 131; Steam§ 4; Taxation §§ 1990–2071.]
bracket creep
bracket creep. The process by which inflation or increased income pushes individuals into higher tax brackets.