graduated tax
Học thuậtThân thiện
Definition
Noun: A graduated tax is a tax system where the tax rate applied increases progressively as the taxable amount (such as income or wealth) increases. It is designed so that those with a greater ability to pay contribute a higher percentage of their income.
Usage
The term "graduated tax" is used to describe the structure of a taxation system, most commonly applied to personal income. It is a formal economic and policy term. * The country implemented a graduated tax to reduce income inequality. * A key feature of a graduated tax is its multiple brackets with increasing rates.
Examples
- Under a graduated tax, an individual earning $30,000 pays a lower percentage than someone earning $300,000.
- Proponents argue that a graduated tax is fairer than a flat tax.
- The policy debate focused on whether to adjust the rates within the existing graduated tax.
Advanced Usage
- "Graduated" in this context refers to the stepped or tiered structure of the tax rates, not to the act of completing an academic degree.
- The concept is central to discussions on tax progressivity and redistributive economic policy.
Variants and Related Words
- Progressive Tax: This is a direct synonym for "graduated tax." Both terms describe the same system of increasing rates.
- Tax Bracket: A specific range of income subject to a particular tax rate within a graduated tax system.
- Graduate (verb): To complete an academic degree. (Note: This is a different, unrelated meaning of the word "graduate").
Synonyms
- Progressive tax
Antonyms
- Flat tax (a tax system with a single constant rate)
- Regressive tax (a tax where the effective rate decreases as the amount subject to taxation increases)
Noun
- any tax in which the rate increases as the amount subject to taxation increases