tax break

(noun)

A deduction in tax that is given in order to encourage a certain economic activity or a social objective.

Related Terms

Examples of tax break in the following topics:

  • The Conflict Perspective: Class Conflict and Scarce Resources

    • Governments that promote capitalism often establish corporate welfare through direct subsidies, tax breaks, and other support that benefit big businesses.
    • For example, the Walton family, the owners of Wal-Mart, receives enormous tax breaks.
    • Whether the benefits of these tax breaks have made their way down to ordinary people through better business practices or better working conditions for Wal-Mart employees is questionable.

  • Dominant Perspectives

    • Corporate welfare is one example where an arrangement of direct subsidies, tax breaks, and other support that the government has created for big businesses.
    • As mentioned previously, the Walton family receives enormous tax breaks.

  • Corporations and Corporate Power

    • National and local governments often compete against one another to attract MNC facilities, with the expectation of increased tax revenue, employment, and economic activity.
    • To compete, political entities may offer MNCs incentives such as tax breaks, governmental assistance, subsidies, or lax environmental and labor regulations.

  • Multinational Corporations

    • National and local governments often compete with one another to attract MNC facilities, with the expectation of increased tax revenue, employment, and economic activity.
    • To compete, political entities may offer MNCs incentives such as tax breaks, pledges of governmental assistance or subsidized infrastructure, or lax environmental or labor regulations.

  • Staking the Desk: Unequal Funding

    • Because schools are funded by property taxes, schools in poor areas receive less funding then schools in wealthier areas.
    • In the United States, most public schools are funded primarily through local property taxes.
    • Since school funding is often based on property taxes, poorer neighborhoods may have less money available for schools.

  • Theories of Deviance

    • Thus, deviance can be the result of accepting one norm, but breaking another in order to pursue the first.

  • New Developments in Families

    • Legal reforms in the 1960s and 1970s expanded the rights of nonmarital children and unwed mothers, breaking down the distinction between "legitimate" and "illegitimate".
    • a way to avoid the higher income taxes paid by some 2-income married couples (in the United States)

  • Age and Income

    • Thus, if the elderly see an increase in their total share of tax revenue, it is likely that some other age group will see a decrease in its total share of tax revenue.
    • Even so, poverty rates across all three age groups depicted in the figure above have declined from what they were prior to the introduction of tax redistribution policies like Social Security.
    • Currently, more money is received from Social Security taxes than is distributed to retirees.However, that will change if Social Security is not modified by 2017.
    • For about 20 years following that, the Social Security Trust Fund, which is the money that was collected when there was a surplus in tax revenue, will make up the difference in payments.
    • Medicare is worse off as tax income in 2009 was already insufficient to cover the expenses of the program and the Trust Fund reserves are already been tapped to offset the costs.

  • Informal Economy

    • The informal economy consists of economic activity that is neither taxed nor regulated by a government.
    • The informal economy consists of economic activity that is neither taxed nor regulated by a government.
    • Formal economy goods may be taxed and are included in the calculation of a government's gross national product (GNP), which is the market value of all products and services produced by a country's companies in a given year.
    • This may manifest as unreported employment, hidden from the state for tax, social security or labor law purposes, but legal in all other aspects.

  • Social Security Legislation

    • Social security is a social insurance program that is funded primarily through payroll taxes, or taxes taken out of an employee's pay each pay period.
    • Tax deposits are formally entrusted to funds that maintain the money and distribute allowances to qualifying elders.
    • The current workforce is taxed, the results of which flow into a special fund designed for social security.
    • Currently, more money is being taken in by the fund through taxing the current workforce than is being paid out to retirees.