Local Tax Rate

Equity and Adequacy Issues in Education Finance: Issues and Perspectives by Committee on Education Finance National,

Spending on K-12 education across the United States and across local school districts has long been characterized by great disparities-disparities that reflect differences in property wealth and tax rates. For the past quarter-century, reformers have attempted to reduce these differences through court challenges and legislative action. As part of a broad study of education finance, the committee commissioned eight papers examining the history and consequences of school finance reform undertaken in the name of equity and adequacy.

Marginal tax rate - In the tax system and in economics, the marginal tax rate refers to the increase in one's tax obligation as one's taxable income rises:

Effective tax rate - The effective tax rate is the amount of income tax an individual or firm pays divided by the individual or firm's total taxable income. This ratio is usually expressed as a percentage.

Revenue Act of 1978 - The United States Revenue Act of 1978 reduced individual income taxes (widened tax brackets and reduced the number of tax rates), increased the personal exemption from $750 to $1,000, reduced corporate tax rates (the top rate falling from 48 percent to 46 percent), increased the standard deduction from $3,200 to $3,400 (joint returns), increased the capital gains exclusion from 50 percent to 60 percent, and repealed the non-business exemption for state and local gasoline taxes.

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