Search results
Results From The WOW.Com Content Network
One type of tax that does not create a large excess burden is the lump-sum tax. A lump-sum tax is a fixed tax that must be paid by everyone and the amount a person is taxed remains constant regardless of income or owned assets. It does not create excess burden because these taxes do not alter economic decisions.
A lump sum is a single payment of money, as opposed to a series of payments made over time (such as an annuity). [1] [2] [3] [4]The United States Department of Housing and Urban Development distinguishes between "price analysis" and "cost analysis" by whether the decision maker compares lump sum amounts, or subjects contract prices to an itemized cost breakdown.
A lump-sum tax is a special way of taxation, based on a fixed amount, rather than on the real circumstance of the taxed entity. [1] In this, the entity cannot do anything to change their liability. [2] In contrast with a per unit tax, lump-sum tax does not increase in size as the output increases. [3]
Some pension plans offer a hybrid option that combines the benefits of both a lump sum and an annuity. For example, you might choose to take 30 percent of your pension as a lump sum and convert ...
A lump sum could be $10,000, $50,000, $200,000 or any amount that is large given your situation. You might find yourself with a lump sum for any number of reasons. Perhaps you received an inheritance.
(2) Contradicting intuition, standard MCF measures are unequal to one for non-distortionary lump-sum taxes. (3) The normalization of the tax system influences the MCF for both lump-sum and distortionary taxation. (4) Most MCF concepts ignore the reasons for distortionary taxes, namely, redistributional benefits. [7]
There are a lot of factors that would come into play such as your health and life expectancy, family situation, other retirement income, and taxes.
Defined benefit (DB) pension plan is a type of pension plan in which an employer/sponsor promises a specified pension payment, lump-sum, or combination thereof on retirement that depends on an employee's earnings history, tenure of service and age, rather than depending directly on individual investment returns. Traditionally, many governmental ...