surtax

surtax definition - business

surtax

A tax in addition to the regular tax. For example, many cities and counties levy a sales tax that is in addition to the state sales tax. For a period of time the federal government required individuals to pay a 10% surtax on taxable income above a specified amount. Thus, the marginal rate of 36% became a marginal rate of 39.6%.

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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