What is a Tax Base?
Tax bases, as they relate to communities, have to do with the total assessed value of all income and property that is present within a given community. Determining the value helps make it possible to calculate taxes that are due on the resources of the community, and thus create the primary revenue stream for the function of the government and associated social services. A proper assessment of the existing tax base means there will be funds for services such as the maintenance of streets and roads, and other benefits that governments routinely provide to citizens. Taxable activities that go into determining the base figure for taxation are varied. They may include the current market value of properties, such as office buildings, retail spaces, and housing facilities. Taxable activities may also include the sales activity that takes place within the jurisdiction, taking into consideration the value of the goods and services sold. The tax base also includes figures that relate to earned
A tax base is the difference between a person’s taxable income for the year and the person’s deductions. A person may choose to itemize his or her deductions or take the standard deduction that is provided by the federal or state government. (Note: Texas is one of several states that does not have a state income tax.) What are tax rates? Tax rates are mathematical tables that determine the amount of tax that an individual owes. Tax rates are based on income. The higher a person’s income, the higher the tax rate. Presently, the highest taxable rate for income is 39.6 percent of income. What is “income”? Income is defined as the realization of gain. This sounds complicated, but it’s really not. Anytime you receive money, be it a paycheck or the selling of your house, you have realized a gain. Realizing gain is a key requirement in tax law. I won $1,000 in a charity raffle. Do I need to declare this as earned income? Yes. Gambling winnings are fully taxable and must be reported on your ta
