What Is a Targeted Accrual Redemption Note? A targeted accrual redemption note (TARN) is an exotic derivative that terminates when a limit on coupon payments to the holder is reached. Target accrual redemption notes (TARN) have the distinguishing feature of being subject to early termination. If the accumulation of coupons reaches a predetermined amount before
What Are TARP Bonuses? A TARP bonus refers to (in a pejorative way) the bonuses paid out to executives and traders in investment banks involved in the financial crisis of 2008. The Troubled Asset Relief Program (TARP) used tax money, which was designed to purchase troubled assets on the balance sheets of banks and financial
What Is the Tel Aviv Stock Exchange (TASE)? The Tel Aviv Stock Exchange (TASE) is a securities market located in Tel Aviv, Israel. The TASE trades in stocks, convertible securities, corporate and government bonds, short-term certificates, and a variety of derivatives. It plays a primary role in the growth and development of Israel’s economy. Key Takeaways
What Is Tax Avoidance? The term tax avoidance refers to the use of legal methods to minimize the amount of income tax owed by an individual or a business. This is generally accomplished by claiming as many deductions and credits as are allowable. It may also be achieved by prioritizing investments that have tax advantages
Defining Tax Exempt Tax-exempt refers to income or transactions that are free from tax at the federal, state, or local level. The reporting of tax-free items may be on a taxpayer’s individual or business tax return and shown for informational purposes only. The tax-exempt article is not part of any tax calculations. Tax-exempt may also refer
What Is Tax Fairness? Tax fairness is a concept which stipulates that a government’s tax system should be equitable to all citizens. Opinions differ, however, in just how to reach tax fairness. The solutions are varied, but most fall under three broad systems of taxation. They include regressive taxation, progressive taxation, and blended taxation. Key
What Is a Tax Incidence? “Tax incidence” (or incidence of tax) is an economic term for understanding the division of a tax burden between stakeholders, such as buyers and sellers or producers and consumers. Tax incidence can also be related to the price elasticity of supply and demand. When supply is more elastic than demand, the
What Is a Tax Wedge? A tax wedge is the difference between before-tax and after-tax wages. The tax wedge measures how much the government ostensibly receives as a result of taxing the labor force. Tax wedge may also refer to the market inefficiency that is created when a tax is imposed on a good or
What Is Taxation Without Representation? The phrase taxation without representation describes a populace that is required to pay taxes to a government authority without having any say in that government’s policies. The term has its origin in a slogan of the American colonials against their British rulers: “Taxation without representation is tyranny.” Key Takeaways Taxation
What Is a Taxable Spinoff? A taxable spinoff is a divestiture of a subsidiary or division by a publicly-traded company, which will be subject to capital gains taxation. To qualify as a taxable transaction, the parent corporation must divest through direct sale of the division or the assets it contains. The profits made from the
