privilege tax

A tax on the privilege of carrying on a business or occupation for which a
license or franchise is required. [Cases: Licenses 1. C.J.S. Architects § 8; Licenses §§ 2–4.] progressive tax.A tax structured so that the effective tax rate increases more than proportionately as the tax base increases, or so that an exemption remains flat or diminishes. • With this type of tax, the percentage of income paid in taxes increases as the taxpayer’s income increases. Most income taxes are progressive, so that higher incomes are taxed at a higher rate. But a tax can be progressive without using graduated rates. — Also termed graduated tax. Cf. regressive tax; flat tax. [Cases: Internal Revenue 3545–3552; Taxation 1061–1065. C.J.S. Internal Revenue §§ 331–333, 335, 358–361, 797; Taxation § 1698.]
[Blacks Law 8th]