Having Trouble fundamentally understanding Tax Burden.
Increase in tax rate, decrease in value of tax burden.
I would think the higher tax rate would be more of a tax burden? Can someone explain how to differentiate?
Is it correct to think tax burden is the percent you are NOT taxed (1-avg tax rate)?
Its simply uour net income / EBIT
your*
tax Burden is equal to (1-Tax rate), so if tax increases the tax burden decreases. and it not net income/EBIT, its net income/EBT.
Think of “tax burden” as the amount of money that you get to keep. So as the tax rate goes up, the amount you get to keep goes down.
thank you