Federal Rate

Federal Rate. The highest marginal rate in effect on any applicable Payment Date at which basic income taxes are imposed pursuant to the Code on income earned by individuals. The Federal Rate shall be determined without reference to or adjustment for any applicable credits or deductions, or for any other taxes (e.g., the alternative minimum tax) or surtaxes that may be imposed pursuant to the Code, or for any special tax rates that may apply to income derived from specific sources (e.g., dividends or capital... gains). The Federal Rate is 35.0% on the Effective Date View More

Federal Rate. Shall mean the applicable federal rate provided for in section 7872(f)(2) of the Code.