Progressive tax, Managerial Economics

Assignment Help:

PROGRESSIVE TAX

A progressive income tax system is one where the higher the income, the greater the proportion paid in taxes.  This is effected by dividing the taxpayers' incomes into bands (brackets) upon which different rates of tax are paid - the rates being higher and the band of income.  For example, in Kenya, the bands are as follows:

 Monthly Tax Rates

Income Bracket                             Tax

(K£ per month)                (Kshs per Kshs 20)

1 - 325                                      2

326 - 650                                   3

651 - 975                                   4

976 - 1300                                 7

1301 - 1625                                7

excess over 1625                         7.50

Examples of Progressive taxes in Kenya are Income Tax, Estate Duty, Wealth Tax and Gift Tax.


Related Discussions:- Progressive tax

Normal and supernormal profits, NORMAL AND SUPERNORMAL PROFITS Normal ...

NORMAL AND SUPERNORMAL PROFITS Normal profit refers to the payment necessary to keep an entrepreneur in a particular line of production. In economics, it is generally belie

Structure of population and supply of labour, THE STRUCTURE OF POPULATION A...

THE STRUCTURE OF POPULATION AND SUPPLY OF LABOUR The structure (also called age distribution or composition) of population, or the number of people in the different age groups

Marginal and average cost curves, Relationship between AC, AVC, AFC and MC ...

Relationship between AC, AVC, AFC and MC is elucidated graphically by drawing respective cost curves in Figure below. Behaviour of cost curves is elucidated below. Figure:

In how costless bargaining will lead to a socially efficient, A firm can pr...

A firm can produce steel with or without a filter on its smokestack. If it produces without a filter, the external costs on the community are $500,000 per year. If it produces with

Managerial Economics helps create utility for the Society. , Managerial Eco...

Managerial Economics helps create utility for the Society.

Define the shift in demand curve, Define the shift in demand curve To p...

Define the shift in demand curve To put it differently, demand for a commodity means entire demand schedule that demonstrates the varying amounts of goods purchased at alternat

Keynesian theory of consumption function, THE KEYNESIAN THEORY OF CONSUMPTI...

THE KEYNESIAN THEORY OF CONSUMPTION FUNCTION The theory was developed during the Great Depression which plagued Europe and America.  During this time, there was excess capacit

Explain the decision-making theory, Explain the Decision-making theory ...

Explain the Decision-making theory Decision-making theory and game theory that recognise the conditions of imperfect knowledge and uncertainty under which business managers ope

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd