income tax

A state or federal government's levy on individuals as personal income tax and on the earnings of corporations as corporate income tax. Bloomberg Financial Dictionary

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income tax ˈincome tax noun [countable, uncountable] TAX

in Britain, a tax on money people earn, paid to the national government. In the US, a tax on the money people earn or on the profits companies make, paid to the national, state, or local government:

• Florida and Texas have no income tax, which is one reason that many people with substantial assets live there.

• He failed to report and pay income tax on his portion of this income.

➔ see also separate entry for tax¹

ˌcorporate ˈincome tax TAX

a tax on company profits in the US; = corporation tax Bre:

• a reduction in corporate income taxes that will benefit small businesses

deˌferred ˈincome tax TAX

income tax to be paid by a company in a later tax year on profits made in an earlier year:

• The company had $83.8 million of liabilities as of Sept. 30, excluding deferred income taxes.

ˌfederal ˈincome tax TAX

a tax paid by people on what they earn or by companies on their profits to the US government:

• They were charged with evading federal income taxes on millions of dollars of income.

indiˌvidual ˈincome tax TAX

income tax on what people earn rather than a tax on company profits:

• Individual income taxes, which account for close to half of all federal receipts, were down 4.5%.

ˌlocal ˈincome tax TAX

an income tax paid to a city in the US:

• These figures include local income tax of $138 in Denver and $1,903 in New York.

ˌnegative ˈincome tax TAX ECONOMICS

a proposal by some economists and politicians to make payments to people on low wages to bring their incomes up to a minimum level:

• I want to bring in a negative income tax to bring income up to the level needed for family subsistence.

ˌpersonal ˈincome tax TAX

another name for individual income tax:

• The state's budget includes a 4.5% personal income tax.

ˌstate ˈincome tax TAX

income tax paid to a US state government:

• Municipal bonds are typically free of state income taxes in the state where issued.

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income tax UK US noun [C or U]

► TAX a tax on the money that a person earns from working or that a company earns from the sale of products or services: »

business/corporate/personal income tax

avoid/evade/pay income tax »

Several tax evaders got away with no penalties by agreeing to pay income tax for previous years.

put up/increase/raise income tax »

Congress is highly unlikely to raise income tax in an election year.

»

to cut/reduce/lower income tax

»

The Chancellor proposed a 1p cut in the basic rate of income tax.

→ See Note TAX(Cf. ↑tax)

→ See also CORPORATE INCOME TAX(Cf. ↑corporate income tax), FEDERAL INCOME TAX(Cf. ↑federal income tax), INDIVIDUAL INCOME TAX(Cf. ↑individual income tax), NEGATIVE INCOME TAX(Cf. ↑negative income tax), PERSONAL INCOME TAX(Cf. ↑personal income tax), STATE INCOME TAX(Cf. ↑state income tax)