A tax cap places an
upper bound
In mathematics, particularly in order theory, an upper bound or majorant of a subset of some preordered set is an element of that is every element of .
Dually, a lower bound or minorant of is defined to be an element of that is less ...
on the amount of
government tax a person might be required to pay. In this case the tax is said to be capped.
An example of this is the American Social Security Tax, which does not apply to wages over an annual limit.
References
Tax terms
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