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


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