by TheBusinessProfessor | Feb 23, 2025 | Business Taxation
What is a Cascade Tax?A cascade tax refers to a fee that the government levies on certain goods at every stage of production (from production to consumer consumption). It is a turnover tax where there is progressive taxation that is inclusive of all the charges of the...
by TheBusinessProfessor | Feb 23, 2025 | Business Taxation
What is a Regressive Tax?A regressive tax refers to a uniform tax that takes a larger percentage of income from the people who earn less than from the ones who earn more or have a higher income. A regressive tax works in contrast to a progressive tax that focuses on...
by TheBusinessProfessor | Feb 23, 2025 | Business Taxation
What is the American Opportunity Tax Credit?The American Opportunity Tax Credit (AOTC) is a type of credit that helps students and households pay post-secondary education expenses. This is a credit for qualified education expenses paid for eligible students during the...
by TheBusinessProfessor | Feb 23, 2025 | Business Taxation
What is the after-tax basis of bonds?The basis (cost basis) of an investment is the principal amount paid on the investment. The after-tax basis is used for taxable bonds to calculate the return on the investment by deducting the taxes paid on the bond from the yield...
by TheBusinessProfessor | Feb 23, 2025 | Business Taxation
What is a Proportional Tax?A proportional tax is a type of income tax mechanism where the taxing authority levies all taxpayers the same percentage regardless of what their income is. In other words, the proportional tax applies to all types of income earners (high,...
by TheBusinessProfessor | Feb 23, 2025 | Business Taxation
What is Franchise Tax?The franchise tax is not an income tax, rather, it is a tax imposed on corporations based on the capital or net worth of assets they have in a state. Some states in the United States impose the franchise tax on corporations that operate in the...
