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


Investor Glossary | Term of the Day | Suggest a Term | Chart of the Day | Dogs of the Dow
Investor Glossary Index >>> # 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 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
Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
©2004-2014 Investor Glossary - All rights reserved - Terms of Use