Fair Not Flat: How to Make the Tax System Better and Simpler

By Edward J. McCaffery | Go to book overview

GLOSSARY OF KEY TERMS

APPRECIATION. The rise in value of an asset. Appreciation can be due to inflation or can represent a real gain in value. Appreciation is not consistently taxed under the current inconsistent income tax.

AFTER-TAX DOLLARS. Dollars that have already been taxed. If you earn $10,000 at work and your taxes come to $1,500, you are left with $8,500 in after-tax dollars. You should not be taxed on this amount again. See also basis.

AVERAG E TAX RATE. The tax rate that an average dollar bears in taxes. Under an income tax, the average tax rate is calculated by dividing one's total taxes by one's total income. See also marginal tax rate.

BASE. See tax base.

BASIS. After-tax dollars. If you invest with money that has already been subject to the income tax, you have basis in the investment equal to its cost: that value cannot be taxed again. Roth IRAs have basis because the contributions to fund them are not tax deductible. If, on the other hand, you get a tax deduction for an investment, you have no basis in the investment, so its value can still be subject to an income tax. Traditional IRAs do not have basis because the contributions to them are tax deductible. The current income tax allows one to receive certain types of income tax free: cash gifts, tax-exempt interest, the proceeds of life insurance, and so on. Because you are not supposed to ever pay tax on such items, they have basis. See also after-tax dollars; carryover basis; stepped-up basis.

BUILT-IN GAIN. Appreciation that has not yet been taxed. If you buy a share of stock for $100 and it rises in value to $150, you will have $50 of built-in gain, also called unrealized appreciation.

CAPITAL ASSET. Property that has been held for over one year. Investments can be capital assets; inventory and certain self-created assets, such as books and paintings in the hands of writers and artists, cannot.

CAPITAL APPRECIATION. The rise in value of a capital asset.

CAPITAL GAIN OR LOSS. The tax gain or loss that is realized when a capital asset is sold.

-161-

Notes for this page

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items

Items saved from this book

This book has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this book

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this page

Cited page

Style
Citations are available only to our active members.
Buy instant access to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited page

Bookmark this page
Fair Not Flat: How to Make the Tax System Better and Simpler
Table of contents

Table of contents

  • Title Page iii
  • Contents vii
  • Tables and Figures ix
  • Acknowledgments xi
  • Introduction - Time for a Change 1
  • One - Tax Basics 9
  • Two - The Trouble with the Income Tax 27
  • Three - The Case for a Spending Tax 45
  • Four - Death to Death Taxes 62
  • Five - Progressivity Can Live 78
  • Six - The Fair Not Flat Tax 97
  • Conclusion - Toward Glass Teamwork, Not Glass Conflict 112
  • Questions and Comments on the Fair Not Flat Tax 117
  • Glossary of Key Terms 161
  • Further Reading 167
  • Index 171
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this book

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Help
Full screen
/ 178

matching results for page

    Questia reader help

    How to highlight and cite specific passages

    1. Click or tap the first word you want to select.
    2. Click or tap the last word you want to select, and you’ll see everything in between get selected.
    3. You’ll then get a menu of options like creating a highlight or a citation from that passage of text.

    OK, got it!

    Cited passage

    Style
    Citations are available only to our active members.
    Buy instant access to cite pages or passages in MLA, APA and Chicago citation styles.

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

    1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

    Cited passage

    Thanks for trying Questia!

    Please continue trying out our research tools, but please note, full functionality is available only to our active members.

    Your work will be lost once you leave this Web page.

    Buy instant access to save your work.

    Already a member? Log in now.

    Oops!

    An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.