Break-Even Tax Rate
18 January 2010 by bbu09 Add a comment
Topics: BeaBu Glossary > B
Tags: after tax, break even, indifferent, return on investment, tax rate, taxes
Break-even tax rate definition
The term break-even tax rate is related to the impact of taxes and tax rates on investment returns.
Break-even tax rate is the tax rate at which an investor would have equal outcomes of entering a potential investment or transaction and not entering the transaction.
In this case the investor would be indifferent between the two options – he would not prefer any of them from the other one, because the overall after-tax outcome would be the same for both.
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Topics: BeaBu Glossary > BTags: after tax, break even, indifferent, return on investment, tax rate, taxes