Investment Language 101 Series: TERM OF THE DAY: -- What is ' Effective Tax Rate ' | E.21 | Trading Candle Cheat Sheet Incl. Each Episode.
A series designed to help all the new people flooding into & entering Crypto/Investments daily who get thrown into the rabbit hole so to speak and everything is new to them.
It is a TLDR / Short Form Series, covering ONLY one thing each episode in blue collar, easy to understand language to give a SHORT OVERVIEW of the term or lesson of the day.
It is specifically designed this way to keep it short and simple.
People can then search out extra info if they wish.
I've never seen a regular series or resource running on Steemit to continually address this basic need so I decided to do it.
TERM OF THE DAY:
What is....
What is ' Effective Tax Rate '?
--
The effective tax rate is the average rate at which an individual or corporation is taxed.
The effective tax rate for individuals is the average rate at which their earned income is taxed, and the effective tax rate for a corporation is the average rate at which its pre-tax profits are taxed.
--
Breaking Down...
' Effective Tax Rate ':
--
An individual's effective tax rate in the USA is calculated by dividing total tax expense from line 63 of his 1040 Form by his taxable income from line 43 of that form. For corporations, the effective tax rate is computed by dividing total tax expenses by the firm's earnings before taxes.
--
-- Which Taxes Are Included in Effective Tax Rates?
In many cases, effective tax rate only refers to income taxes incurred by taxpayers and does not include sales tax or other types of taxes. However, in other cases, analysts include excise taxes as well payroll taxes. This can be especially useful when trying to compare the effective tax rate of two or more individuals, as income tax is only a portion of the total tax paid by most taxpayers. To calculate effective tax with these inclusions, add together all of the tax under consideration and divide it by the individual's income.
-- Effective Tax Rate Versus Marginal Tax Rate:
The marginal tax rate refers to the tax bracket into which a business's or individual's income falls. The effective tax rate is typically a more accurate representation of tax liability than an individual or business's marginal tax rate. For example, two companies with income in the same upper marginal tax bracket may end up with difference effective tax rates depending on the amount of their earnings that fall into each tax bracket.
For example, imagine a tax system where earnings under $100,000 are taxed at 10%, earnings between $100,000 and $300,000 are taxed at 15%, and earnings over $300,000 are taxed at 25%. Two businesses both fall into the upper tax bracket. However, one earned $500,000, while the other only earned $360,000. Both businesses pay 10% or $10,000 on their first $100,000 of earnings, and they both pay 15% or $30,000 on their earnings between $100,000 and $300,000.
-- Both companies also pay 25% on their earnings over the $300,000 threshold, but that equates to $50,000 for one company and only $15,000 for the second company. With a total tax liability of $90,000, the company with $500,000 in revenue pays an 18% effective tax rate, while the company with $360,000 in income pays a total income tax bill of $55,000, making its effective tax rate only 15.2%.
Trading Candle Cheat Sheet:
--
Further Reading/Source/Resources
Friend of the People -- Enemy of the State.
--
I am leaving these images I made here until I figure out one that fits properly and looks right for the first/main image for the post/series.
--
Since Steemit dev's changed the size of the picture frame that shows, it has honestly been a real problem getting images to match the screen, it was perfectly fine months ago before they messed around with it.
SMH.
Thanks for reading, have a nice day.
PixaBay has tons of free pictures for us all to use!!!
Super Easy/Fast Picture Edits / Resizing at: http://www.picresize.com/ and also https://www298.lunapic.com/editor/
If you liked this blog post - please Resteem it and share good content with others!
--
Some of my recent blogs:
--
https://steemit.com/funny/@barrydutton/life-in-crypto-is-like-19-or-cryptocurrency-starter-pack-1
Most Images: Gif's - via Giphy.com , Funny or Die.com / Pixabay. Today:
If you feel my posts are undervalued or you want to donate to tip me - I would appreciate it very much.
--
LiteCoin (LTC) - LKdsnvSXk9JW99EiNicFMGKc1FXiBo9tUE
Monero (XMR) - d8ecb02c09f70ec10504b59b96bc1f488af28b05933893dfd1f55b113e23fbff
EOS (EOS) - 0xD37bEFf5bf07E3aa432de00cE0AaA8df603A4fB0
Ethereum (ETH) - 0x3Ad69Ff057C9533ca667B2d7E3E557F5eeFd4477
Ethereum Classic (ETC) - 0x5ab2b08d4ce8d454eb9d1ecc65c6d8b0c5f9784c
Bitcoin (BTC) - 18J6RRuzX4V7b2CDbx7tWZYNBLkkGWsvWX
DASH - XgZvsvSZgPkNbmGbRhc3S1Pt2JAc7QHwiS
PIVX - DA3azxQqJiX9t7EviuacpamfNhMi2zGAUh
Stratis (STRAT) - SNsJp6v1jXvKWy4XcXSXfNQ9zhSJJppJgv
ZCash (ZEC) - t1aCPEYELkGaf3GtgGTiCEDo7XfPm4QEwmL
Please note -- I will have limited internet access for awhile -- so PLEASE do not be upset that I cannot reply right away, or to everyone. I am dealing with some changes, and will have limited time online and will be happy if I get a few blog posts up a week.
This has really upset some people but I do not force my opinions on others, or need to communicate every detail of my life or issues, most people do not care anyways. I invested around 10 hours or more a day on Steemit most of my first 13 mths here, trying to build community, put out content and engage people, help and donate to people, and I just do not have that time in my life right now, and that includes for replies and voting/curation.
I have done my best, sorry if you do not understand like some are clearly having a problem with. It's a blogging platform, and I will do my best at everything, and to keep blogging.
Carry On.
A series designed to help all the new people flooding into & entering Crypto/Investments daily who get thrown into the rabbit hole so to speak and everything is new to them.
It is a TLDR / Short Form Series, covering ONLY one thing each episode in blue collar, easy to understand language to give a SHORT OVERVIEW of the term or lesson of the day.
It is specifically designed this way to keep it short and simple.
People can then search out extra info if they wish.
I've never seen a regular series or resource running on Steemit to continually address this basic need so I decided to do it.
TERM OF THE DAY:
What is....
What is ' Effective Tax Rate '?
--
The effective tax rate is the average rate at which an individual or corporation is taxed.
The effective tax rate for individuals is the average rate at which their earned income is taxed, and the effective tax rate for a corporation is the average rate at which its pre-tax profits are taxed.
--
Breaking Down...
' Effective Tax Rate ':
--
An individual's effective tax rate in the USA is calculated by dividing total tax expense from line 63 of his 1040 Form by his taxable income from line 43 of that form. For corporations, the effective tax rate is computed by dividing total tax expenses by the firm's earnings before taxes.
--
-- Which Taxes Are Included in Effective Tax Rates?
In many cases, effective tax rate only refers to income taxes incurred by taxpayers and does not include sales tax or other types of taxes. However, in other cases, analysts include excise taxes as well payroll taxes. This can be especially useful when trying to compare the effective tax rate of two or more individuals, as income tax is only a portion of the total tax paid by most taxpayers. To calculate effective tax with these inclusions, add together all of the tax under consideration and divide it by the individual's income.
-- Effective Tax Rate Versus Marginal Tax Rate:
The marginal tax rate refers to the tax bracket into which a business's or individual's income falls. The effective tax rate is typically a more accurate representation of tax liability than an individual or business's marginal tax rate. For example, two companies with income in the same upper marginal tax bracket may end up with difference effective tax rates depending on the amount of their earnings that fall into each tax bracket.
For example, imagine a tax system where earnings under $100,000 are taxed at 10%, earnings between $100,000 and $300,000 are taxed at 15%, and earnings over $300,000 are taxed at 25%. Two businesses both fall into the upper tax bracket. However, one earned $500,000, while the other only earned $360,000. Both businesses pay 10% or $10,000 on their first $100,000 of earnings, and they both pay 15% or $30,000 on their earnings between $100,000 and $300,000.
-- Both companies also pay 25% on their earnings over the $300,000 threshold, but that equates to $50,000 for one company and only $15,000 for the second company. With a total tax liability of $90,000, the company with $500,000 in revenue pays an 18% effective tax rate, while the company with $360,000 in income pays a total income tax bill of $55,000, making its effective tax rate only 15.2%.
Trading Candle Cheat Sheet:
--
Further Reading/Source/Resources
Friend of the People -- Enemy of the State.
--
I am leaving these images I made here until I figure out one that fits properly and looks right for the first/main image for the post/series.
--
Since Steemit dev's changed the size of the picture frame that shows, it has honestly been a real problem getting images to match the screen, it was perfectly fine months ago before they messed around with it.
SMH.
Thanks for reading, have a nice day.
PixaBay has tons of free pictures for us all to use!!!
Super Easy/Fast Picture Edits / Resizing at: http://www.picresize.com/ and also https://www298.lunapic.com/editor/
If you liked this blog post - please Resteem it and share good content with others!
--
Some of my recent blogs:
--
https://steemit.com/funny/@barrydutton/life-in-crypto-is-like-19-or-cryptocurrency-starter-pack-1
Most Images: Gif's - via Giphy.com , Funny or Die.com / Pixabay. Today:
If you feel my posts are undervalued or you want to donate to tip me - I would appreciate it very much.
--
LiteCoin (LTC) - LKdsnvSXk9JW99EiNicFMGKc1FXiBo9tUE
Monero (XMR) - d8ecb02c09f70ec10504b59b96bc1f488af28b05933893dfd1f55b113e23fbff
EOS (EOS) - 0xD37bEFf5bf07E3aa432de00cE0AaA8df603A4fB0
Ethereum (ETH) - 0x3Ad69Ff057C9533ca667B2d7E3E557F5eeFd4477
Ethereum Classic (ETC) - 0x5ab2b08d4ce8d454eb9d1ecc65c6d8b0c5f9784c
Bitcoin (BTC) - 18J6RRuzX4V7b2CDbx7tWZYNBLkkGWsvWX
DASH - XgZvsvSZgPkNbmGbRhc3S1Pt2JAc7QHwiS
PIVX - DA3azxQqJiX9t7EviuacpamfNhMi2zGAUh
Stratis (STRAT) - SNsJp6v1jXvKWy4XcXSXfNQ9zhSJJppJgv
ZCash (ZEC) - t1aCPEYELkGaf3GtgGTiCEDo7XfPm4QEwmL
Please note -- I will have limited internet access for awhile -- so PLEASE do not be upset that I cannot reply right away, or to everyone. I am dealing with some changes, and will have limited time online and will be happy if I get a few blog posts up a week.
This has really upset some people but I do not force my opinions on others, or need to communicate every detail of my life or issues, most people do not care anyways. I invested around 10 hours or more a day on Steemit most of my first 13 mths here, trying to build community, put out content and engage people, help and donate to people, and I just do not have that time in my life right now, and that includes for replies and voting/curation.
I have done my best, sorry if you do not understand like some are clearly having a problem with. It's a blogging platform, and I will do my best at everything, and to keep blogging.
Carry On.
--
LiteCoin (LTC) - LKdsnvSXk9JW99EiNicFMGKc1FXiBo9tUE
Monero (XMR) - d8ecb02c09f70ec10504b59b96bc1f488af28b05933893dfd1f55b113e23fbff
EOS (EOS) - 0xD37bEFf5bf07E3aa432de00cE0AaA8df603A4fB0
Ethereum (ETH) - 0x3Ad69Ff057C9533ca667B2d7E3E557F5eeFd4477
Ethereum Classic (ETC) - 0x5ab2b08d4ce8d454eb9d1ecc65c6d8b0c5f9784c
Bitcoin (BTC) - 18J6RRuzX4V7b2CDbx7tWZYNBLkkGWsvWX
DASH - XgZvsvSZgPkNbmGbRhc3S1Pt2JAc7QHwiS
PIVX - DA3azxQqJiX9t7EviuacpamfNhMi2zGAUh
Stratis (STRAT) - SNsJp6v1jXvKWy4XcXSXfNQ9zhSJJppJgv
ZCash (ZEC) - t1aCPEYELkGaf3GtgGTiCEDo7XfPm4QEwmL
Please note -- I will have limited internet access for awhile -- so PLEASE do not be upset that I cannot reply right away, or to everyone. I am dealing with some changes, and will have limited time online and will be happy if I get a few blog posts up a week.
This has really upset some people but I do not force my opinions on others, or need to communicate every detail of my life or issues, most people do not care anyways. I invested around 10 hours or more a day on Steemit most of my first 13 mths here, trying to build community, put out content and engage people, help and donate to people, and I just do not have that time in my life right now, and that includes for replies and voting/curation.
I have done my best, sorry if you do not understand like some are clearly having a problem with. It's a blogging platform, and I will do my best at everything, and to keep blogging.
Carry On.
Hey my friend! I noticed that you don’t have Bitcoin cash as one of your currencies. Do you support it?
I have some.
It never dawned on me to put it in actually, lol
wow post i like it. thanks for upvote and resteem..
Great post and good writing.i like your post and upvoted.