Vertical Equity

Filed Under »
Dictionary Says

Definition of 'Vertical Equity'

A method of collecting income tax in which the taxes paid increase with the amount of earned income. The driving principle behind vertical equity is the notion that those who are more able to pay taxes should contribute more than those who are not.
Investopedia Says

Investopedia explains 'Vertical Equity'

The two main types of vertical equity are proportional and progressive taxation. In proportional taxation, the amount of taxes paid increases directly with income. For example, a 5% increase in earnings will cause a 5% increase in taxes. Progressive taxation includes tax brackets, where people pay taxes based on the tax bracket into which their income places them. Each tax bracket will have a different tax rate, with higher income brackets paying the highest percentages.
Search results for

'Vertical Equity'

  • Do Tax Cuts Stimulate The Economy?

    http://www.investopedia.com/articles/07/tax_cuts.asp
    ... Two distinct concepts are horizontal equity and vertical equity. ... A second concept
    is vertical equity, which is translated as the ability-to-pay principle. ...

  • Why would a multinational corporation conduct a vertical foreign ...

    http://www.investopedia.com/ask/answers/06/verticalfdi.asp
    ... On the other hand, the need for a forward vertical FDI stems from the problem of
    finding distributors ... Read More ยป. Bank Rates. Savings; Home Equity; Mortgage; Auto ...

  • Vertical Bull and Bear Credit Spreads

    http://www.investopedia.com/articles/optioninvestor/02/041202.asp
    ... As you'll see, the vertical credit spread offers traders an excellent limited-risk
    strategy that can be used with equity as well as commodity and futures ...

  • Understanding The Mutual Fund Style Box

    http://www.investopedia.com/articles/basics/06/stylebox.asp
    ... Box The international equity style box looks exactly like its domestic cousin, with
    market cap on its vertical axis and valuation along the horizontal axis. ...

  • NCR Buys Its Way Into Another Vertical

    http://stocks.investopedia.com/stock-analysis/2011/NCR-Buys-Its-Way-Into-Another-Vertical-NCR-RADS-IBM-DBD-PAR0713.aspx
    ... NCR Buys Its Way Into Another Vertical. ... He has worked as an equity analyst for both
    sell-side and buy-side investment companies in both equities and fixed income ...

  • Breaking Down The Balance Sheet

    http://www.investopedia.com/articles/basics/06/balancesheet.asp
    ... Most companies favor the vertical report form, which doesn't conform to the typical
    explanation in investment literature of the ... Assets = Liabilities + Equity. ...

  • Debit Spreads: A Portfolio Loss Protection Plan

    http://www.investopedia.com/articles/optioninvestor/09/equity-option-debit-spreads-protect-loss.asp
    ... Perhaps the most confusing term that comes with spread trading is the adjective
    "vertical," but understanding how a spread is constructed will help clear up ...

  • Understanding Japanese Keiretsu

    http://www.investopedia.com/articles/economics/09/japanese-keiretsu.asp
    ... All ancillary companies operate within the vertical keiretsu of Toyota but are members
    of the larger horizontal keiretsu ... $30K Home Equity Loan, 5.74%, 5.77%. ...

  • No Hasbro Deal For Now

    http://stocks.investopedia.com/stock-analysis/2010/No-Hasbro-Deal-For-Now-HAS-MAT-DIS-DISCA-JAKK0629.aspx
    ... Why should the potential interest be limited to private equity? Mattel ... company?
    The potential for tremendous vertical integration exists. ...

  • Petroleum Development To Focus On Wattenberg Field In 2012

    http://stocks.investopedia.com/stock-analysis/2011/Petroleum-Development-To-Focus-On-Wattenberg-Field-In-2012-PETD1229.aspx
    ... The company has already drilled its first vertical well here and expects to drill ...
    & Gas (Nasdaq:CRZO), which signed an agreement with a private equity firm on ...

Related Articles

Bank Rates
Product Today Last Wk
$10K MMA 0.50% 0.51%
MMA 0.45% 0.46%
6 Month CD 0.46% 0.47%
1 Year CD 0.70% 0.75%
5 Year CD 1.46% 1.46%
1 Year Jumbo CD 0.66% 0.67%
Rate data provided by Bankrate
Product Today Last Wk
$30K HELOC 4.59% 4.60%
$30K Home Equity Loan 5.74% 5.77%
$50K Home Equity Loan 5.45% 5.50%
$50K HELOC 4.24% 4.24%
$100K Home Equity Loan 5.41% 5.46%
$100K HELOC 4.13% 4.13%
Rate data provided by Bankrate
Product Today Last Wk
30 Year Fixed 3.80% 3.80%
15 Year Fixed 3.09% 3.11%
1 Year ARM 3.54% 3.53%
30 Year Fixed Jumbo 4.38% 4.38%
5/1 ARM 2.65% 2.69%
3/1 ARM 2.69% 2.69%
Rate data provided by Bankrate
Product Today Last Wk
60 Month Used Car Loan 4.51% 4.51%
48 Month Used Car Loan 4.35% 4.35%
48 Month New Car Loan 3.24% 3.24%
36 Month Used Car Loan 4.34% 4.36%
36 Month New Car Loan 3.11% 3.13%
60 Month New Car Loan 3.35% 3.34%
Rate data provided by Bankrate
Partner Links