Taxable Income
TAXABLE INCOME
Under the federal tax law, gross income reduced by adjustments and allowable deductions. It is the income against which tax rates are applied to compute an individual or entity's tax liability. The essence of taxable income is the accrual of some gain, profit, or benefit to a taxpayer.
cross-references
More From encyclopedia.com
Income Tax , An income tax is a portion of an individual or business’s earnings that is collected by the government. The income tax is charged, or levied, as a pe… Regressive Tax , A tax with a rate that decreases as the taxpayer's income increases.
The result of a regressive tax is that the lower-income taxpayer pays a larger p… Tax Reform Act , The Tax Reform Act of 1986 (100 Stat. 2085, 26 U.S.C.A. §§ 47, 1042) made major changes in how income was taxed. The act either altered or eliminated… Negative Income Tax , A negative income tax (NIT) provides an income guarantee to families without other sources of income, but taxes away that guarantee as the family’s e… Tax Rates , FLAT TAX PROVISION (ISSUE)
A flat tax taxes everybody at the same tax rate. A graduated tax taxes at different tax rates. In the late-1990s flat tax… Trust Companies , In 1898 the U.S. Supreme Court declared the income tax unconstitutional. It had been levied as part of the Wilson–Gorman Tariff Act (1894) and taxed…
You Might Also Like
NEARBY TERMS
Taxable Income