Chapter 1: An Introduction to Tax

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This is a mind map for BUS 419 Chapter 1.
Lucille Lamberson
Mapa Mental por Lucille Lamberson, atualizado more than 1 year ago
Lucille Lamberson
Criado por Lucille Lamberson aproximadamente 2 anos atrás
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Resumo de Recurso

Chapter 1: An Introduction to Tax
  1. How to Calculate Tax
    1. Tax = Tax Base x Tax Rate
    2. How to Calculate a Tax
      1. Tax Base x Tax Rate
        1. The tax rate is usually expressed as a percentage.
      2. Marginal Tax Rate
        1. (New total tax - Old total tax) / (New taxable income - Old taxable income)
        2. Average Tax Rate
          1. Total tax / Taxable income
          2. Proportional Tax Rate Structure
            1. Imposes a constant tax rate throughout the tax base. As the tax base increases, the taxes paid increase proportionally.
            2. Progressive Tax Rate Structure
              1. Imposes an increasing marginal tax rate as the tax base increases
              2. Regressive Tax Rate Structure
                1. Imposes a decreasing marginal tax rate as the tax base increases

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