autonomous tax vs flat income tax vs progressive income tax

Many jurisdictions allow notional deductions for individuals and may allow deduction of some personal expenses. Deductions typically include all income-producing or business expenses including an allowance for recovery of costs of business assets. The income of a corporation's shareholders usually includes distributions of profits from the corporation.

Generally, only net gain from the sale of property, including goods held for sale, is included in income. Taxable income of taxpayers resident in the jurisdiction is generally total income less income producing expenses and other deductions. Some jurisdictions impose the higher of an income tax or a tax on an alternative base or measure of income. Credits of various sorts may be allowed that reduce tax. Income from investments may be taxed at different (generally lower) rates than other types of income. Most jurisdictions exempt local charitable organizations from tax. Individual income is often taxed at progressive rates where the tax rate applied to each additional unit of income increases (e.g., the first $10,000 of income taxed at 0%, the next $10,000 taxed at 1%, etc.). The tax imposed on companies is usually known as corporate tax and is commonly levied at a flat rate. The tax rate may increase as taxable income increases (referred to as graduated or progressive tax rates). Taxation rates may vary by type or characteristics of the taxpayer and the type of income. Income tax generally is computed as the product of a tax rate times the taxable income. An income tax is a tax imposed on individuals or entities (taxpayers) in respect of the income or profits earned by them (commonly called taxable income).

Autonomous tax vs flat income tax vs progressive income tax