ET_B

ET_B, or "Effective Tax Rate on Business," refers to the percentage of a company's profits paid in taxes. It provides insight into how much of a business’s income is lost to taxes, helping compare tax burdens across companies or countries. For example, if a company earns $1 million and pays $200,000 in taxes, its ET_B is 20%. It’s a useful metric for understanding the tax efficiency of a business, considering applicable tax rates, deductions, and incentives.