graduated flat tax

graduated flat tax definition - business

graduated flat tax

An income tax having a minimal number of progressively higher rates. For example, a taxing authority may levy a tax of 10% on all income up to $15,000, 15% on income from $15,000 to $25,000, and 20% on all income above $25,000. The graduated flat tax is a compromise between a flat tax and a progressive tax.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

Comments
Improve this definition.
Do you have more to add? Share your linguistic knowledge or observation.
/Register to save your comments.