Definition of Income tax:
Annual charge levied on both earned income (wages, salaries, commission) and unearned income (dividends, interest, rents). In addition to financing a governments 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.
Tax levied by a government directly on income, especially an annual tax on personal income.
Synonyms of Income tax
VAT, Ad valorem duty, Alcohol tax, Amusement tax, Assessment on default, Capital gains tax, Capitation, Capitation tax, Corporation tax, Customs, Customs duty, Death duty, Death tax, Doomage, Duty, Estate duty, Estate tax, Excess profits tax, Excise, Excise tax, Export tax, Federal tax, Gabelle, Gift tax, Head tax, Import tax, Inheritance tax, Internal revenue tax, Land tax, Liquor tax, Local tax, Luxury tax, Nuisance tax, Personal property tax, Poll, Poll tax, Property tax, Property-increment tax, Protective tariff, Provincial tax, Rates, Revenue tariff, Sales tax, Salt tax, School tax, Severance tax, Specific duty, State tax, Tariff, Tariff duty, Telephone tax, Use tax, Value added tax, Window tax
How to use Income tax in a sentence?
- Even though no one likes to pay it we all pay the income tax so that the government has money to make our lives better.
- Because Florida does not levy income tax , it relies on revenue generated from sales and property tax to fund the state.
- Most of our revenue is raised through income tax and income tax revenue declines with age.
- The mans income tax was getting higher as he moved up in the company and he started to make more money, he knew that climbing the corporate ladder would come with consequences.
Meaning of Income tax & Income tax Definition