Encyclopedia
Tax cap
Upper bound on the amount of personal government tax
A tax cap places an upper bound on the amount of government tax a person might be required to pay. In this case the tax is said to be capped.
An example of this is the American Social Security Tax, which does not apply to wages over an annual limit.
Sources and credits
This article is adapted from the Wikipedia article “Tax cap”, written by its contributors and licensed under CC BY-SA 4.0. Fathomly has changed the layout, removed citation markers, navigation and maintenance notices, and adjusted punctuation. This adapted version is shared under the same license. For references, see the original article.
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