income tax
Definition
Annual charge levied on both earned income (wages, salaries, commission) and unearned income (dividends, interest, rents). In addition to financing a government's operations, progressive income taxation is designed to distribute wealth more evenly in a population, and to serve as automatic fiscal stabilizer to cushion the effects of economic cycles. Its two basic types are (1) Personal income tax, levied on incomes of individuals, households, partnerships, and sole-proprietorships; and (2) Corporation income tax, levied on profits (net earnings) of incorporated firms. However, presence of tax loopholes (whose number increases in direct proportion to the complexity of tax code) may allow some wealthy persons to escape higher taxes without violating the letter of the tax laws.
income tax is in the Accounting & Auditing, Banking, Commerce & Finance and Economics, Politics, & Society subjects.
income tax appears in the definitions of the following terms:
tax allocation within a period,
post tax debt-service coverage,
pay as you earn (PAYE),
tax base,
net return,
non-qualified deferred compensation (NQDC),
tax free exchange,
accumulated profits tax,
investment incentives,
tax credit
and
income tax appears in the other terms: personal income tax, deferred income tax charge, deferred income tax liability
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