Meaning of sponge tax | Babel Free
Definitions
An estate tax imposed by a state that was credited against the federal estate tax, raising revenue for a state without increasing the overall tax burden.
US, historical
Examples
“Following various versions of the Massachusetts estate tax in response to the changes in the Internal Revenue Code, in 2002, the Legislature amended § 2A to use a "sponge tax" calculation based upon the Federal credit for State death taxes that would have been allowable to a decedent's estate in 2000.”
CEFR level
B2
Upper Intermediate
This word is part of the CEFR B2 vocabulary — upper intermediate level.
This word is part of the CEFR B2 vocabulary — upper intermediate level.