What is the difference between a progressive tax and regressive tax?
Progressive tax means people with higher income are taxed at a higher percentage. Regressive tax means people with higher income are taxed at a lower percentage. ...
Income tax is an example of what kind of tax?
The United States has a progressive tax method. This means that the more your earn to more tax percentage of your income you pay. This is a dangerous type of taxation in that we are approaching a time when almost 50% of the population pay no income taxes at all. ...
What is the difference between prepaid income and accrued income?
prepaid income means liability for company and accrued income is asset of the company prepaid income means company receiving income in advance as well as accrued income means event is occur but we are not receiving income to company , ...
What does negative net income means?
Negative income of any sort means more money is leaving than is entering in the measured range. Net income is 'in total' so it means reserves are decreasing (expenditure) rather than increasing (income)...
Asked in Taxes and Tax Preparation
Why is the progressive tax is the ideal tax system?
the progressive tax system is the ideal one because it would not be unfair to the people whose income are less because the more you earn, the higher your tax rate.So it means that people who earn less will pay less tax rate while those people who earn more will pay more tax rate. That's the good thing about progressive tax system. ...
Asked in Taxes and Tax Preparation
What are income tax rates?
Tax rates are the percentages used to calculate the amounts that you will need to pay to the government to which you owe taxes.With the United States federal taxes, there are several rates that require you to calculate your taxes. The rates in the U.S. are made in a progressive fashion, which means the more income you have, the higher tax rates you will have to pay. ...
Asked in Law & Legal Issues
When the consumer pays a higher tax rate as income increases iscalled what?
If a taxpayer's percentage of tax increases with his income, the tax scheme is called a "progressive" tax. So, for example, say that John is your taxpayer. In a progressive tax system, his tax rate depends on his income meaning that (hypothetically) If John earns $10,000, then he must pay 10% in income tax. But, if John earns $20,000, then he must pay 15% in income tax. The other commonly discussed tax scheme is called a flat tax. This means that no matter what...
Can a marginal tax rate ever be negative?
I don't think so. A marginal rate is the amount you pay on the next $ of income. As our tax brackets are progressive, and with the additional income you get no more exemptions/deductions than the previous, it would seem it would have to be positive...or at least as positive as you were before, (so if the marginal increase still means you get taxable income (from child care, or earned income credit, etc.) I guess your entire effective rate would be negative. ...
Asked in Taxes and Tax Preparation, Income Taxes
What is negative income tax plans?
A negative income tax is a tax system that collects revenue from high income persons and gives transfers to low income persons. This kind of tax system, referred to as a progressive income tax on the rich would be used to subsidize and/or provide a negative tax to low income groups. Poor people groups would not have to demonstrate need beyond simply being poor. Thus, this would not be a means to subsidize the break up of families or illegitimate births. But...
If net income is zero do you have a loss in your business?
Net Income zero means firm has at no profit no loss position and it does not means loss to company. ...