lump-sum tax

lump-sum tax definition - business

lump-sum tax

A fixed amount of tax paid by everyone regardless of income earned or assets owned. A lump-sum tax is efficient to administer and enjoys a high level of compliance, but is likely to be regarded as inequitable. A poll tax is an example of a lump-sum 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.

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