Investor Glossary-income taxInvestor Glossary-income taxInvestor Glossary-income taxInvestor Glossary-income taxInsightful stock market charts - Click here
investor
Categories    # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Income Tax

The HTML to link to this page
 

Income tax is tax levied against personal income or a business entity's net profits. In the United States, the Federal government, most of the 50 states, and some municipalities, such as New York City, levy income tax on individuals. The US federal government first levied an income tax in 1861, to pay for the American Civil War. The US income tax system has become notoriously complex over the years, and the top income tax rate has varied by an extraordinary amount. In the twentieth century, the income tax rate stood at 1% in 1913, rose to 77% during World War I, was lowered to 25% afterwards, then raised again during the Great Depression and World War II, at which point the top income tax rate reached a high of 91%. Income tax in the US is considered a progressive tax, meaning that higher earners pay at a higher rate than lower earners.



Rate this income tax definition...

Learn about investing with the Investor Glossary Term of the Day


Click here for insightful stock market charts. Where is the market headed? The answer may surprise you. Find out
with the exclusive & Barron's recommended charts of Chart of the Day.


Popular Terms: in escrow, wholly-owned subsidiary, risk management, phantom income, class C shares, deferred tax, minority interest, 1031 exchange, command economy, stock market close, VIX, 144a, average price per share, cancelled check, deferred revenue, 401a, 1035 exchange, EBITDA, required rate of return, debt service coverage, option premium, current ratio, margin rate, open position, limit order, reverse mortgage, FICO score, Zero Cost Collar, covered put, ex-dividend, FTSE, real GDP, liquidity ratio, LIBOR, labor relations, balance sheet, implied volatility, Key Rate Duration, irrevocable trust, diluted share, quality assurance, retained earnings, stock split, inflation, APR, ex-dividend date, dividends payable, annual return, per diem


Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
Home | Term of the Day | Suggest a Term | Chart of the Day | Dogs of the Dow
©2004-2016 Investor Glossary - All rights reserved - Terms of Use