Graduated Tax (Noun)
Meaning
Any tax in which the rate increases as the amount subject to taxation increases.
Classification
Nouns denoting possession and transfer of possession.
Examples
- A graduated tax is designed to make wealthier individuals contribute more to the public treasury.
- In this type of tax system, tax rates increase progressively with an increase in income or profit, implementing a graduated tax on its residents.
- Australia implements a graduated tax rate with marginal rates from 0% on taxable income to up to 45%.
- Because many argue a flat tax on its citizens was fundamentally unjust and decided in place a graduated tax as seen globally with varied implications to international interests.
- Britain abolished their inheritance graduated tax law before reassessing alternative revenues it in following budgets however continued work-related initiatives providing much smaller 'windfalls.'