tax cut
Definition
Noun: A reduction in the amount of money that must be paid to the government from personal or business income, or on purchases. It is a fiscal policy measure intended to increase disposable income or business capital.
Usage
A "tax cut" is a specific legislative or policy action. It is typically discussed in political, economic, and public discourse. The term is often modified by adjectives describing its size, target, or timing (e.g., proposed tax cut, across-the-board tax cut, temporary tax cut).
Examples
- The government debated a significant tax cut for middle-class families.
- Economists are analyzing the impact of the corporate tax cut on investment.
- The campaign promise of a tax cut was popular with voters.
Advanced Usage
- "to enact/pass/implement a tax cut": To officially approve and put a tax reduction into effect.
- The parliament voted to enact a tax cut.
- "to advocate for/propose a tax cut": To publicly support or suggest a tax reduction.
- The candidate continues to advocate for a tax cut.
- "to benefit from/receive a tax cut": To be among those who pay less tax as a result of the policy.
- Small businesses are expected to benefit from the new tax cut.
Variants and Related Words
- Tax reduction: A more formal synonym for "tax cut."
- Tax relief: A broader term that can include tax cuts, but also credits, deductions, or deferrals.
- Tax break: A more informal term for any law that reduces tax liability, which can include cuts, credits, or deductions.
Synonyms
- Tax reduction
- Tax decrease
Antonyms
- Tax increase
- Tax hike
Related Phrases
- Supply-side economics: An economic theory that often advocates for tax cuts to stimulate economic growth.
- Fiscal policy: Government use of spending and taxation to influence the economy; tax cuts are a tool of fiscal policy.
- Disposable income: The amount of money households have to spend after taxes; tax cuts aim to increase this.
Noun
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the act of reducing taxation
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the new administration's large tax cut was highly controversial
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