For more information contact David E. Vance, Clinical Assistant Professor, Rutgers School of Business Camden
|
|
- Ada Bryan
- 6 years ago
- Views:
Transcription
1 Tax Reform The economy grows fastest when everyone has the maximum incentive to work save and invest. Taxation reduced incentives, but taxes are needed to run the government. The balance between incentives and taxes can be achieved when taxes are (i) simple to calculate, (ii) few in number, (iii) with the widest possible base, and (iv) the lowest possible rate. Tax complexity reduces incentives without raising revenue. Complexity is driven by four factors (i) use of the tax system for social engineering, (ii) elaborate schemes to chase small amounts of revenue, (iii) rules designed to increase fairness which simply pick winners and losers and (iv) poor drafting. The personal income tax code has become so complex neither taxpayers, professional tax preparers, nor the Internal Revenue Service can apply it on a consistent basis. 1 Research has shown that whether marginal rates are high or low, the federal government harvests about twenty percent of gross domestic product. 2 Therefore, it should be possible to reduce tax rates, grow the economy and allow the government to harvest twenty percent of a bigger gross domestic product thus increasing government revenue. This paper proposes a clear simple tax plan that should raise as much or more tax revenue than the current code without reducing incentives to grow the economy. The rational for each section of the proposed tax code is followed by suggested statutory language. Personal Income Tax Many problems in the personal income tax code stem from credits, deductions, exemptions and other devices designed for behavior modification and social engineering. The tax code should be limited to raising revenue for the government. Complexity also arises because some income is treated differently than other income, for example interest on municipal bonds is not currently taxed. Capital gains provisions and provisions allowing taxpayers to use losses to offset income give rise to complicated and unproductive tax shelters. There is no reason why the government should subsidize bad investment choices by allowing losses to off-set income. Finally, phase outs and conditional tests add further complexity. Section 01 Personal Income Tax 1.1. All tax credits, deductions, exemptions, capital gains, losses and loss carry-forwards and the Alternative Minimum Tax are repealed. Business losses, casualty losses, loss on sales of assets or other losses may not be used to offset income Income is income from all sources including by not limited to wages, salaries, bonuses, income from sole proprietorships and the allocated share of partnership profits, distributions from trusts and estates, gain on sale of real, personal and intellectual property, interest, dividends, stock rights and warrants and interest on municipal bonds and alimony received. Income shall include unemployment compensations, workers compensation to the extent it is a wage replacement, and half of Social Security. Only income earned in the United States, its possessions, territories and dependencies shall be included in income There shall be a personal exemption of $5,000 for the taxpayer and a $5,000 exemption for each dependent.
2 1.4. Court ordered alimony actually paid may be deducted from income Taxable Income is Income less personal exemptions and alimony The tax on the first $40,000 of taxable income is 5%; on taxable income from $40,000 to $200,000 is 10%; on taxable income from $200,000 to $1,000,000 is 15%; on taxable income from $1,000,000 to $5,000,000 is 20%; and on taxable income above $5,000,000 is 25%. Multiple tax brackets don t make the tax code complicated. All the calculations needed to get to taxable income make it complicated. Proposed tax rates are roughly similar to rates currently paid on incomes up to $200,000, slightly less than the tax rate on incomes from $200,000 to $1,000,000 and much higher than current effective tax rates on income over $5,000,000. Corporate Income Tax Complexity in corporate income taxes arises from credits, deductions, accelerated depreciation and other provisions designed to encourage or discourage behavior and to favor or disfavor certain industries rather than generating tax revenue for the government. Such provisions distort economic outcomes as companies focus on minimizing taxes rather than selling goods and services. Such provisions necessitate keeping two sets of books, one to compute taxable income and one to report economic income, and of course those books must be reconciled. United States tax rates are among the highest in the world which discourages investment and expansion. The government s attempt to chase worldwide profits on United States based businesses adds cost and complexity to tax administration and makes it irrational to start or grow a business in the United States if other options are available. The tax code could be simplified and overseas profits repatriated to the United States for distribution and reinvestment if only domestic income was taxed. Start-up businesses create most of the jobs in the economy and entrepreneurs should have the maximum incentives to start and grow businesses. This implies that smaller businesses should be very lightly taxed, with rates only reaching maximum levels for the very largest businesses. Section 02 Corporate Income Tax 2.1. All tax credits, exemptions, capital gains, losses and loss carry-forwards, accelerated depreciation, bonus depreciation, and depletion in excess of cost are repealed Taxable income is net income based on Generally Accepted Accounting Principles, subject to the limitations of paragraph 1 above, plus compensation for any executive, employee or board member in excess of $2 million per year. 2.3 The tax rate on the first $5 million of taxable income is 5%; on taxable income from $5 million to $50 million is 10%, on taxable income from $50 million to $500 million is 15% and on taxable income over $500 million is 20% Corporate income earned after the date this code is effective will only be taxed if earned within the United States, its possessions, territories and dependencies.
3 2.5. The tax on corporate income earned outside of the United States and before the date this code is effective will be 5% if repatriated to the United States within one year of this code becoming effective. Earnings shall be deemed repatriated on a First Earned, First Repatriated basis. The tax on income earned outside of the United States prior to the implementation of this code, and repatriated more than one year after the effective date of this code shall be taxed at a 35% rate with no offset for taxes paid to other jurisdictions. Unincorporated Businesses Unincorporated businesses should be treated in a manner similar to corporations. Section 03 Unincorporated Businesses 3.1 All tax credits, exemptions, capital gains, losses and loss carry-forwards, accelerated depreciation, bonus depreciation, and depletion in excess of cost are repealed. 3.2 Taxable income is net income based on Generally Accepted Accounting Principles, subject to the limitations of paragraph 1 above, plus compensation for any executive, employee or board member in excess of $2 million per year. 3.3 Income from a sole proprietorship shall be income to the owner. Losses may not be passed through to the owner. 3.4 Income from partnerships shall be allocated to partners and each partner will pay tax on his, her or its allocated share. Losses may not be passed through to partners. Excise Taxes Excise taxes are generally conceived of as taxes to pay for government services. For example, the gasoline tax is supposed to pay for roads and the tax on airline tickets is supposed to support airport infrastructure. The excise tax on cigarettes is designed to discourage smoking although it helps offset increased health costs. There are other excise taxes which add complexity and administrative cost without raising significant revenue. Simplicity and tax efficiency could be gained by limiting excises taxes to three. Section 04 Excise Taxes 4.1. The excise tax on gasoline and diesel fuel sold for use on public roads shall be $.25 per gallon The excise tax on airline tickets shall be 10% of the ticket price. The tax shall not apply to ancillary services such as meals or checked bags Tobacco products shall be taxed at the rate of $5.00 per pound All other excise taxes are repealed.
4 Social Security and Medicare Taxes Social Security and Medicare taxes are necessary to honor the social bargain between those in the workforce and those no longer working. However, these taxes should not be so heavy that they discourage work and reduce tax contributions. Section 05 Social Security and Medicare Taxes 5.1. Employees will be taxed 6.0% of the first $200,000 of wages, salaries and bonuses for Social Security. Employer s will pay an amount equal to the tax paid by employees Employees will be taxed 1.5% of the first $200,000 of wages, salaries and bonuses for Medicare. Employers will pay an amount equal to the tax paid by employees Self-employed individuals will pay both the employee and employer taxes. However, employer taxes will be a tax-deductible business expense. Trusts and Estates Trusts and estates should not be used as a vehicle to avoid taxation. Section 06 Trusts and Estates 6.1 Trusts and estates shall pay tax on undistributed earnings at the same rate as individuals. However, they may not use personal exemptions. Gift, Inheritance and Other Taxes Gift and inheritance taxes are taxes on money that has already been taxed. The very find ways to pass on wealth through a number of devices including memberships on foundation boards and so forth. Gift and inheritance taxes fall most heavily on family businesses including family farms. It should be the policy of the government to encourage production which will ultimately result in jobs and taxable income, not burden passing wealth to family members and others. Other federal taxes increase administrative cost and add complexity without raising substantial revenue and should be repealed. Section 07 Gift, Inheritance and Other Taxes 7.1 Gift and inheritance taxes are repealed All other federal taxes are repealed.
5 Administration The Internal Revenue Service slows economic growth by burdening taxpayers with endless demands for data and information, some of which is only tangentially related to collection of taxes. Section 08 Tax Administration 8.1 The Internal Revenue Service will only collect the information needed to compute taxes, or otherwise required by this tax code. Taxpayers shall maintain records sufficient to permit verification that taxes were properly paid. 8.2 The statute of limitations for assessment of taxes and penalties is three years from the date tax returns were filed. Tax returns may not be audited more than three years after the date of filing. The statute of limitations is extended to five years if taxes due and owing were under reported by more than 20%. 8.3 Any person who willfully attempts in any manner to evade or defeat any tax imposed by this title or the payment thereof, shall, in addition to other penalties provided by law, be guilty of a felony. A taxpayer convicted of criminal fraud is subject to a fine of up to $100,000 ($500,000 in the case of a corporation, but not less than three times the tax underpayment) or imprisonment of up to five years. 8.4 The Internal Revenue Service will at all times respect due process in the assessment and collection of taxes and may not seize any assets without a court order. 8.5 Income computed using Generally Accepted Accounting Principles as limited by this statute and audited by a Certified Public Accountant shall be entitled to a presumption of correctness. Such presumption may only be overcome by clear and convincing evidence. 1 Is the Federal Income Tax Code Unconstitutionally Vague, Mustang Journal of Law and Legal Studies, October Unconstitutional Vagueness and the Tax Code, Tax Notes Vol.143. No. 7. May 19. Pp Hauser, Kurt W. and David Ranson Hauser s Law, Hoover Digest No. 4. Oct This essay appeared in the Wall Street Journal on May 20, 2008.
OVERVIEW OF THE FEDERAL TAX SYSTEM AS IN EFFECT FOR 2015
OVERVIEW OF THE FEDERAL TAX SYSTEM AS IN EFFECT FOR 2015 Prepared by the Staff of the JOINT COMMITTEE ON TAXATION March 30, 2015 JCX-70-15 CONTENTS Page INTRODUCTION... 1 I. SUMMARY OF PRESENT-LAW FEDERAL
More informationOHIO STATE UNIVERSITY EXTENSION. OSU EXTENSION TAXATION PROGRAM January 2014
OHIO STATE UNIVERSITY EXTENSION Tax Bulletin OSU EXTENSION TAXATION PROGRAM January 2014 FUEL TAX CREDITS AND REFUNDS FOR FARMERS INTRODUCTION Farming can be a fuel- intensive business. Both the federal
More informationOVERVIEW OF THE FEDERAL TAX SYSTEM AS IN EFFECT FOR 2013
OVERVIEW OF THE FEDERAL TAX SYSTEM AS IN EFFECT FOR 2013 Prepared by the Staff of the JOINT COMMITTEE ON TAXATION January 8, 2013 JCX-2-13 CONTENTS Page INTRODUCTION... 1 I. SUMMARY OF PRESENT-LAW FEDERAL
More informationChapter 1 Introduction to Federal Taxation and Understanding the Federal Tax Law
1 Introduction to Federal Taxation and Understanding the Federal Tax Law SUMMARY OF CHAPTER This chapter presents information on the magnitude of federal taxes collected and on taxpayer obligations. Also,
More informationOVERVIEW OF THE FEDERAL TAX SYSTEM AS IN EFFECT FOR 2014
OVERVIEW OF THE FEDERAL TAX SYSTEM AS IN EFFECT FOR 2014 Prepared by the Staff of the JOINT COMMITTEE ON TAXATION March 28, 2014 JCX-25-14 CONTENTS Page INTRODUCTION... 1 I. SUMMARY OF PRESENT-LAW FEDERAL
More information100 West Fifth Street, Suite 1100 Tulsa, Oklahoma Federal Tax Alert. January 4, 2018
100 West Fifth Street, Suite 1100 Tulsa, Oklahoma 74103-4217 918-595-4800 Federal Tax Alert January 4, 2018 Federal Tax Reform; H. R. 1-Tax Cuts and Jobs Act The following is a summary of some of the significant
More informationTAX REFORM: WHAT IT DOES, WHAT IT MEANS TO YOU
TAX REFORM: WHAT IT DOES, WHAT IT MEANS TO YOU DISCLAIMER These materials, and the accompanying oral presentation, are for educational purposes only and are not intended to be written advice concerning
More informationGeneral Instructions
BENSALEM TOWNSHIP SCHOOL DISTRICT BENSALEM, PA 19020-1898 General Instructions Attached is an application for senior citizen property tax assistance. Persons who complete these applications should note
More informationCorporate Tax Integration: In Brief
Jane G. Gravelle Senior Specialist in Economic Policy October 31, 2016 Congressional Research Service 7-5700 www.crs.gov R44671 Summary In January 2016, Senator Orrin Hatch, chairman of the Senate Finance
More informationThe Budget and Economic Outlook: 2018 to 2028
CONGRESS OF THE UNITED STATES CONGRESSIONAL BUDGET OFFICE The Budget and Economic Outlook: 2018 to 2028 Percentage of GDP 30 25 20 Outlays Actual Current-Law Projection Over the next decade, the gap between
More informationNotes and Definitions Numbers in the text, tables, and figures may not add up to totals because of rounding. Dollar amounts are generally rounded to t
CONGRESS OF THE UNITED STATES CONGRESSIONAL BUDGET OFFICE The Distribution of Household Income and Federal Taxes, 2013 Percent 70 60 50 Shares of Before-Tax Income and Federal Taxes, by Before-Tax Income
More informationCHAPTER 1 Introduction to Taxation
CHAPTER 1 Introduction to Taxation CHAPTER HIGHLIGHTS A proper analysis of the United States tax system begins with an examination of the tax structure and types of taxes employed in the United States.
More informationState Tax Return. Out With The Old And In With The New: Ohio Abandons Its Corporate Franchise Tax And Enacts A Commercial Activities Tax
June 2005 Volume 12 Number 6 State Tax Return Out With The Old And In With The New: Ohio Abandons Its Corporate Franchise Tax And Enacts A Commercial Activities Tax Maryann B. Gall Jason R. Grove Columbus
More informationDISTRIBUTIONAL ANALYSIS OF THE CONFERENCE AGREEMENT FOR THE TAX CUTS AND JOBS ACT
DISTRIBUTIONAL ANALYSIS OF THE CONFERENCE AGREEMENT FOR THE TAX CUTS AND JOBS ACT TPC Staff December 18, 2017 The Tax Policy Center has released distributional estimates of the conference agreement for
More informationSPECIAL REPORT. IMPACT. Many of the changes to the Internal Revenue Code in the INDIVIDUALS
Tax Briefing Tax Cuts and Jobs Act December 20, 2017 Highlights 37-Percent Top Individual Tax Rate 21-Percent Flat Corporate Tax Rate New Tax Regime for Pass-throughs Individual AMT Retained/Modified Federal
More information60 THE BUDGET FOR FISCAL YEAR 1980 BUDGET RECEIPTS
1980 60 THE BUDGET FOR FISCAL YEAR 1980 BUDGET RECEIPTS This section of the budget describes the major sources of budget receipts for 1978 to 1982 and discusses the legislative proposals and administrative
More informationLearning Objectives After reading Chapter 1, participants will able to: After reading Chapter 2, participants will able to:
Learning Objectives After reading Chapter 1, participants will able to: 1. Match short-term financial goals with the four generic investment purposes stating the planning purpose of this process, recognize
More informationTax Impact. Accelerating depreciation deductions A cost segregation study may reduce taxes. How basis planning can result in significant tax savings
Tax Impact September/October 2016 Accelerating depreciation deductions A cost segregation study may reduce taxes How basis planning can result in significant tax savings Watch out for the alternative minimum
More informationTax Cuts and Jobs Act: Impact on Individuals
Community Wealth Advisors 3035 Leonardtown Road Waldorf, MD 20601 301 861 5384 wealth@communitywealthadvisors.com www.communitywealthadvisors.com Tax Cuts and Jobs Act: Impact on Individuals On December
More informationNOVEMBER 2017 THE CURRENT SHAPE OF TAX REFORM
NOVEMBER 2017 THE CURRENT SHAPE OF TAX REFORM While much remains to be done, the President and the majority of Congress have articulated their plan for tax reform. The draft bill includes significant tax
More informationDISTRIBUTIONAL ANALYSIS OF THE TAX CUTS AND JOBS ACT AS PASSED BY THE HOUSE WAYS AND MEANS COMMITTEE
DISTRIBUTIONAL ANALYSIS OF THE TAX CUTS AND JOBS ACT AS PASSED BY THE HOUSE WAYS AND MEANS COMMITTEE TPC Staff November 13, 2017 The Tax Policy Center has released distributional estimates of the Tax Cuts
More informationAP Microeconomics Chapter 16 Outline
I. Learning objectives In this chapter students should learn: A. The main categories of government spending and the main sources of government revenue. B. The different philosophies regarding the distribution
More informationCRS Report for Congress
Order Code RL32808 CRS Report for Congress Received through the CRS Web Overview of the Federal Tax System March 10, 2005 David L. Brumbaugh Specialist in Public Finance Government and Finance Division
More informationTrust Fund Recovery. A Tax Resolution Institute Publication 2016
A Tax Resolution Institute Publication 2016 Trust Fund Recovery Facing possible retributions such as civil liability for unpaid employment taxes, including penalties and interest, and possible criminal
More informationWhat you may expect from Tax Reform. Presented by: Val Perry, CPA and Kelli Franco, CPA Moss Adams LLP May 23, 2017
What you may expect from Tax Reform Presented by: Val Perry, CPA and Kelli Franco, CPA Moss Adams LLP May 23, 2017 1 AGENDA The Starting Point Existing Proposals o President Trump s Tax Reform Proposal
More informationSPECIAL REPORT. IMPACT. Many of the changes to the Internal Revenue Code in the INDIVIDUALS
Tax Briefing Tax Cuts and Jobs Act December 22, 2017 Highlights 37-Percent Top Individual Tax Rate 21-Percent Flat Corporate Tax Rate New Tax Regime for Pass-throughs Individual AMT Retained/Modified Federal
More informationSales, storage, use tax.--it is hereby declared to be the legislative intent that every person is exercising a taxable privilege who engages
212.05 Sales, storage, use tax.--it is hereby declared to be the legislative intent that every person is exercising a taxable privilege who engages in the business of selling tangible personal property
More informationAt the end of Class 20, you will be able to answer the following:
1 Objectives for Class 20: The Tax System At the end of Class 20, you will be able to answer the following: 1. What are the main taxes collected at each level of government? 2. How do American taxes as
More informationFederal Tax Reform Idaho Impact
Federal Tax Reform Idaho Impact The potential effect of federal tax reform for Idaho On December 22, 2017, the President signed into law the Tax Cuts and Jobs Act. This legislation includes provisions
More informationRetirement Planning. The Ultimate Tax Guide
Retirement Planning The Ultimate Tax Guide Course Description The need for effective retirement planning has never been greater. This course is essential for participants who wish to attain a comfortable
More informationHOUSE BILL No As Amended by House Committee
Session of 0 As Amended by House Committee HOUSE BILL No. 0 By Committee on Taxation - 0 0 0 AN ACT concerning taxation; relating to the use of a debt collection agency to collect delinquent taxes; time
More informationHomework for Chapter 5. Part 1
Homework for Chapter 5. Part 1 This is a bread and butter chapter. It covers day to day tax compliance (and planning). You need to know everything in this chapter. Many questions are based on law not explained
More informationLearning Objectives. Chapter 6. Funding the Public Sector. Introduction
Copyright 2011 by Pearson Education, Inc. Chapter 6 Funding the Public Sector All rights reserved. Introduction In recent years, various U.S. politicians and pundits have called for boosts in tax rates
More informationCh. 35 TAX EXAMINATIONS AND ASSESSMENTS CHAPTER 35. TAX EXAMINATIONS AND ASSESSMENTS
Ch. 35 TAX EXAMINATIONS AND ASSESSMENTS 61 35.1 CHAPTER 35. TAX EXAMINATIONS AND ASSESSMENTS Sec. 35.1. Tax examinations and assessments. 35.2. Interest, additions, penalties, crimes, and offenses. 35.3.
More informationSPECIAL REPORT. IMPACT. Unveiling of the bill impacts year-end planning. Taxpayers. IMPACT. House Republicans appear to envision moving their bill
Tax Briefing House GOP Tax Cuts and Jobs Act November 3, 2017 Highlights Top Tax Rate of 39.6 Percent SPECIAL REPORT House GOP Proposes Sweeping Tax Code Overhaul Repeal of AMT Repeal of Federal Estate
More informationPresented by: Cyndi G. Warren, CPA Warren Averett Farming and Taxes 101
Presented by: Cyndi G. Warren, CPA Warren Averett www.warrenaverett.com Farming and Taxes 101 AGENDA TAX REFORM High Level Overview Choice of Entity Considerations Q & A HOW DID WE GET HERE? HOUSE OF REPRESENTATIVES
More informationAn Overview of Recent Tax Reform Proposals
Mark P. Keightley Specialist in Economics February 28, 2017 Congressional Research Service 7-5700 www.crs.gov R44771 Summary Many agree that the U.S. tax system is in need of reform. Congress continues
More informationSPECIAL REPORT. IMPACT. Many of the changes to the Internal Revenue Code in the INDIVIDUALS
Tax Briefing Tax Cuts and Jobs Act December 16, 2017 Highlights 37-Percent Top Individual Tax Rate 21-Percent Top Corporate Tax Rate New Tax Regime for Pass-throughs Individual AMT Retained/Modified Federal
More informationFrequently Asked Questions Revised June 24, Why did the IRS issue internal guidance regarding offshore activities now?
Revised June 24, 2009 1. Why did the IRS issue internal guidance regarding offshore activities now? The IRS has had a voluntary disclosure practice in its Criminal Manual for many years. Once IRS Criminal
More informationESTIMATED KANSAS IMPACT OF THE FEDERAL TAX CUTS AND JOBS ACT
ESTIMATED KANSAS IMPACT OF THE FEDERAL TAX CUTS AND JOBS ACT KANSAS DEPARTMENT OF REVENUE FEBRUARY 14, 2018 Summary... 2 Individual Tax Reform... 8 Tax Rate Reform... 8 Deduction for Qualified Business
More informationLearn about tax-efficient investing. Investor education
Learn about tax-efficient investing Investor education Be a tax-conscious investor Of all the expenses investors pay, taxes have the potential for taking the biggest bite out of their total returns. That
More informationPractice Questions and Answers from Lesson I-8: Taxes. Practice Questions and Answers from Lesson I-8: Taxes
Practice Questions and Answers from Lesson I-8: Taxes The following questions practice these skills: Compute the effects of an excise tax on price, quantity, and tax revenue. Show how the tax burden is
More informationRetirement Planning. Financial and Tax Strategies
Retirement Planning Financial and Tax Strategies Course Description This presentation integrates federal taxation with retirement planning. The course will examine tax and savings strategies related to
More informationNotes and Definitions Numbers in the text, tables, and figures may not add up to totals because of rounding. Dollar amounts are generally rounded to t
CONGRESS OF THE UNITED STATES CONGRESSIONAL BUDGET OFFICE The Distribution of Household Income and Federal Taxes, 2011 Percent 70 60 Shares of Before-Tax Income and Federal Taxes, by Before-Tax Income
More informationEstate Planning and Gift Taxation
Estate Planning and Gift Taxation A Complete Guide Course Description This presentation integrates federal taxation with overall financial planning, with a special emphasis on estate and gift taxation.
More informationEcon Ch. 9 Practice Test II
Econ Ch. 9 Practice Test II Multiple Choice Identify the choice that best completes the statement or answers the question. 1. The incidence of a tax can more effectively be shifted from the supplier to
More informationBENSALEM TOWNSHIP SCHOOL DISTRICT Dorothy D. Call Administrative Center
BENSALEM TOWNSHIP SCHOOL DISTRICT Dorothy D. Call Administrative Center 3000 Donallen Drive Bensalem, PA 19020 General Instructions Attached is an application for Senior Citizen Property Tax assistance.
More informationAmendments That Encourage Compliance with the Tax Law and Enhance the Tax Department's Enforcement Ability
New York State Department of Taxation and Finance Office of Tax Policy Analysis Taxpayer Guidance Division Amendments That Encourage Compliance with the Tax Law and Enhance the Tax Department's Enforcement
More informationREVISOR EAP/IL A
1.1... moves to amend H.F. No. 4385, the third engrossment, as follows: 1.2 Delete everything after the enacting clause and insert: 1.3 "ARTICLE 1 1.4 FEDERAL TAX CONFORMITY 1.5 Section 1. Minnesota Statutes
More information2017 Mid-Year Tax Planning
To Our Clients and Friends: 2017 Mid-Year Tax Planning As we write this letter, the federal income tax rates for this year are still the same as last year: 10%, 15%, 25%, 28%, 33%, 35%, and 39.6%. The
More informationEarned Income and Net Profits Tax (EIT) Model Ordinance - Borough/Township/City
N:\WPDATA\PETERSSD\T-Z\Tax Collection Committee\30691smk - E (rev.5/18/11 bag) Earned Income and Net Profits Tax (EIT) Model Ordinance - Borough/Township/City 1. This model ordinance is to be adopted all
More informationADOPTING CHAPTER 6, ARTICLE IV CONSUMER SALES TAX OF THE RANSON MUNICIPAL CODE.
ORDINANCE #2014-263 AN ORDINANCE OF THE CITY OF RANSON PROVIDING FOR THE REDUCTION OF BUSINESS & OCCUPATION TAX AND IMPOSING CONSUMER SALES TAX BY AMENDING CHAPTER 6, ARTICLE III, SECTION 6-56(a) AND ADOPTING
More informationOneida Indian Nation Tax Rules Effective as of March 5, 2014
Oneida Indian Nation Tax Rules Effective as of March 5, 2014 I. RULES OF THE NATION DEPARTMENT OF TAXATION A. The Oneida Nation has authorized the creation of the Nation Department of Taxation with responsibility
More information2017 Year-End Tax Planning for Businesses
2017 Year-End Tax Planning for Businesses As 2017 draws to a close, there is still time to reduce your 2017 tax bill and plan ahead for 2018. This letter highlights several potential tax-saving opportunities
More informationOverview of the Federal Tax System
Overview of the Federal Tax System Molly F. Sherlock Specialist in Public Finance Donald J. Marples Specialist in Public Finance May 16, 2013 CRS Report for Congress Prepared for Members and Committees
More informationTAX REFORM: WHAT IT DOES, WHAT IT MEANS TO YOU
TAX REFORM: WHAT IT DOES, WHAT IT MEANS TO YOU THE TAX CUTS & JOBS ACT OF 2017 (HR 1) Preliminary Summary Analysis Presented by: A. Mac Stevens, CPA Member of the Eide Bailly LLP National Tax Office Ron
More informationROBINSON, FARMER, COX ASSOCIATES
ROBINSON, FARMER, COX ASSOCIATES CERTIFIED PUBLIC ACCOUNTANTS A PROFESSIONAL LIMITED LIABILITY COMPANY December 2017 Client Bulletin TAX CUTS AND JOBS ACT Major Highlights On December 20, 2017, Congress
More informationTAXATION AND INCENTIVES
TAXATION AND INCENTIVES THIS financial year, total tax receipts are expected to rise to 957 million compared with 718 million for last year an increase of 239 million or 33%. As a percentage of national
More informationU.S. tax reforms prevention of base erosion. S. Krishnan
U.S. tax reforms prevention of base erosion S. Krishnan 2 U.S. tax regime prior to 2018 Amongst the large economies in the world, the United States had the highest statutory corporate income tax rate upwards
More informationVILLAGE OF NEW LONDON, OHIO INCOME TAX RETURN AND DECLARATION
VILLAGE OF NEW LONDON Return Service Requested TO: INCOME TAX DEPARTMENT 115 EAST MAIN STREET NEW LONDON, OHIO 44851 PRE-SORTED FIRST CLASS MAIL U.S. POSTAGE PAID NEW LONDON, OHIO Permit No. 5 VILLAGE
More informationPOLICY REPORT The Iowa Policy Project
POLICY REPORT The Iowa Policy Project Child & Family Policy Center April 2003 The Merits of a Cigarette Tax, With Alternative Tax Offsets By Charles Bruner and Peter S. Fisher Driven partly by state budget
More informationTax Cuts and Job Act of 2017
Tax Cuts and Job of 2017 Prepared by Office of Legislative Council and Joint Fiscal Office Enacted December 22, 2017. Makes major changes to three federal taxes: Personal Income, Corporate Income, and
More informationTake Advantage of 0% Rate on Investment Income
July 31, 2017 To Our Clients and Friends: As of the writing of this letter, the federal income tax rates for this year are still the same as last year: 10%, 15%, 25%, 28%, 33%, 35%, and 39.6%. The rate
More informationLearn about tax-efficient investing. Investor education
Learn about tax-efficient investing Investor education Be a tax-conscious investor Of all the expenses investors pay, taxes have the potential for taking the biggest bite out of their total returns. That
More informationNC General Statutes - Chapter 105 Article 3 1
Article 3. Franchise Tax. 105-114. Nature of taxes; definitions. (a) Repealed by Session Laws 2017-204, s. 1.1, effective August 11, 2017. (a1) Scope. The tax levied in this Article upon corporations is
More informationPRELIMINARY DISTRIBUTIONAL ANALYSIS OF THE TAX CUTS AND JOBS ACT
PRELIMINARY DISTRIBUTIONAL ANALYSIS OF THE TAX CUTS AND JOBS ACT TPC Staff November 6, 2017 The Tax Policy Center has produced preliminary distributional estimates of the Tax Cuts and Jobs Act as introduced
More informationThe Tax Cuts and Jobs Act
Advanced Planning The Tax Cuts and Jobs Act Congress has passed the Tax Cuts and Jobs Act, the most sweeping tax reform since 1986. In today s world, pursuing your life s goals is being challenged in new
More informationDon t Forget the SALT: State and Local Tax Implications of Federal Tax Reform
Tax Implications of Federal Tax Reform By Harley Duncan, Dan De Jong, Marianne Evans, and Sarah McGahan 2018 is a new year and with it comes new challenges and opportunities for U.S. taxpayers. On December
More informationTaxes Committee. As prepared for House and Senate Taxes Committees February 20 and 21, 2018
Taxes Committee As prepared for House and Senate Taxes Committees February 20 and 21, 2018 Mission/Vision/Values Mission Working together to fund Minnesota s future. Vision Everyone reports, pays, and
More informationExamining the Tax Cuts and Jobs Act
Examining the Tax Cuts and Jobs Act Sweeping tax law changes In the final weeks of 2017, Congress passed the most comprehensive tax reform package in decades, reducing tax rates for individuals and corporations
More informationLearning Assignments & Objectives
Learning Assignments & Objectives As a result of studying each assignment, you should be able to meet the objectives listed below each assignment. Chapter 1 Financial Tax Planning At the start of Chapter
More informationChapter 3. Objective 1 Identify the Major Taxes Paid by People in Our Society Planning Your Tax Strategy. Chapter Objectives
Chapter 3 Taxes in Your Financial Plan McGraw-Hill/Irwin Copyright 2010 by The McGraw-Hill Companies, Inc. All rights reserved. Taxes in Your Financial Plan Chapter Objectives 1. Identify the major taxes
More informationDISTRIBUTIONAL ANALYSIS OF THE TAX CUTS AND JOBS ACT AS PASSED BY THE SENATE
DISTRIBUTIONAL ANALYSIS OF THE TAX CUTS AND JOBS ACT AS PASSED BY THE SENATE TPC Staff December 4, 2017 The Tax Policy Center has released distributional estimates of the Senate version of the Tax Cuts
More informationInternational Tax. Environments. Chapter Outline. Tax Neutrality INTERNATIONAL INTERNATIONAL FINANCIAL MANAGEMENT FINANCIAL MANAGEMENT
INTERNATIONAL FINANCIAL MANAGEMENT Fourth Edition EUN / RESNICK International Tax Environment 21 Chapter Twenty-one INTERNATIONAL Chapter Objective: FINANCIAL MANAGEMENT This chapter provides a brief introduction
More informationYear-End Tax Planning Summary December 2018
Year-End Tax Planning Summary December 2018 Overview Tax planning at year-end always presents opportunities, especially in a year that involves significant new tax legislation. This memorandum outlines
More informationCHAPTER 48. (2) For a taxpayer, except a public utility, that has allocated net income in excess of $1
CHAPTER 48 AN ACT concerning taxation, supplementing P.L.1945, c.162, amending various parts of the statutory law, and repealing section 30 of P.L.2002, c.40 (C.54:10A-18.1) and section 7 of P.L.2002,
More informationEARNED INCOME TAX ORDINANCE of the BOARD OF SUPERVISORS OF THE TOWNSHIP OF MT. PLEASANT COUNTY OF COLUMBIA, AND STATE OF PENNSYLVANIA
EARNED INCOME TAX ORDINANCE of the BOARD OF SUPERVISORS OF THE TOWNSHIP OF MT. PLEASANT COUNTY OF COLUMBIA, AND STATE OF PENNSYLVANIA ORDINANCE NO. 1-1965 Imposing a tax for general revenue purposes on
More informationHere are some of the key items in the tax reform bill that affect individuals:
Tax Cuts and Jobs Act: What the Tax Reform Bill Means for You Congress has passed tax reform that will take effect in 2018, ushering in some of the most significant tax changes in three decades. There
More informationYou may wish to carefully examine your records to determine if you may be missing any of these deductions.
2018 tax planning and tax changes Re: Planning 2018: Tax Consequences for Self-Employed Individuals Dear Client: Owning your own business can be very rewarding, both personally and financially. Being the
More informationTax Cuts and Jobs Act of 2017
Tax Cuts and Jobs Act of 2017 Important Highlights for Individuals and Small Businesses On December 15, 2017, Congress released the 2017 Tax Cut and Jobs Act ( the Act ) that has now passed both the House
More informationOccupational License Tax ORDINANCE
Occupational License Tax ORDINANCE 2013-09 AN ORDINANCE AMENDING ORDINANCE 2007-11 TO INCREASE THE OCCUPATIONAL LICENSE TAX FROM.5% (ONE-HALF PERCENT) TO 1% (ONE PERCENT) Now, therefore, be it ordained
More information14-1: How Taxes Work NOTES
14-1: How Taxes Work NOTES Learning Target 1. I will demonstrate my understanding of the different types of taxes and what tax revenue is used for. Government Revenue Tax: a mandatory payment to a local,
More informationH.R. 1 TAX CUT AND JOBS ACT. By: Michelle McCarthy, Esq. and Tyler Murray, Esq.
H.R. 1 TAX CUT AND JOBS ACT By: Michelle McCarthy, Esq. and Tyler Murray, Esq. Introduction History H.R. 1, known as the Tax Cuts and Jobs Act ( Act ), was introduced on November 2, 2017. It was passed
More informationAn explanation of the Financial Report of the US Government for fiscal year 2015
An explanation of the Financial Report of the US Government for fiscal year 2015 Prepared on behalf of the Peter G. Peterson Foundation November 2016 An explanation of the Financial Report of the US Government
More information2013 FEDERAL BUDGET. Tax highlights from the 2013 federal budget PERSONAL TAX MATTERS. Personal income tax rates
2013 FEDERAL BUDGET By Jerry S. Rubin, B.E.S., B.Comm.(Hons), CMA, TEP, CFP Tax highlights from the 2013 federal budget Finance Minister James Flaherty tabled the 2013 federal budget on March 21, 2013.
More informationTAX CUTS AND JOBS ACT. National Economic Council
TAX CUTS AND JOBS ACT National Economic Council December 18, 2017 Massive Tax Cuts and Reforms The TCJA provides $5.5 trillion of tax cuts Nearly 60% of these cuts go to families, not corporations The
More informationTHE NATIONAL COMMISSION ON FISCAL RESPONSIBILITY AND REFORM. The Moment of Truth
THE NATIONAL COMMISSION ON FISCAL RESPONSIBILITY AND REFORM The Moment of Truth DECEMBER 2010 II. Tax Reform America's tax code is broken and must be reformed. In the quarter century since the last comprehensive
More information2017 YEAR-END CHECKLIST. YEO & YEO CPAs & BUSINESS CONSULTANTS YEO & YEO. yeoandyeo.com
2017 YEAR-END YEO & YEO TAX CPAs & BUSINESS PLANNING CONSULTANTS CHECKLIST YEO & YEO CPAs & BUSINESS CONSULTANTS yeoandyeo.com As the end of the year approaches, it is a good time to think of planning
More informationREQUIRED MINIMUM DISTRIBUTIONS (RMDs)
REQUIRED MINIMUM DISTRIBUTIONS (RMDs) Everything you need to know about Required Minimum Distributions. What are required minimum distributions (RMDs)? A required minimum distribution, also referred to
More informationChapter 02 Policy Standards for a Good Tax
Chapter 02 Policy Standards for a Good Tax True / False Questions 1. A tax meets the standard of sufficiency if it is easy for people to pay the tax. 2. The federal government is not required to pay interest
More informationTaxation-Overview (Chapter 18)
(Chapter 18) So far, we have talked about different government expenditure items: Education Social Security Health insurance Welfare programs How does local and federal governments finance such programs?
More informationChapter 14 Section 2: Federal Taxes
Chapter 14 Section 2: Federal Taxes Objectives: o Objectives: Describe the process of paying individual income taxes o Identify: the basic characteristics of corporate income taxes. o Explain: the purpose
More informationTAX CUTS AND JOBS ACT (H.R. 1), 2018 A CLOSER LOOK PREPARED BY: ADIL A. BALOCH, CPA; CTRS. Accurate Records and Tax Services, Inc.
TAX CUTS AND JOBS ACT (H.R. 1), 2018 A CLOSER LOOK PREPARED BY: ADIL A. BALOCH, CPA; CTRS Accurate Records and Tax Services, Inc. 18562 Office Park Dr. Montgomery Village, MD 20886 (301) 519-1445 info@aabcpa.com
More informationNon-Qualified Deferred Compensation Plans Best Practices
A P RO FESSIO N AL CO RP O RATIO N ERISA AND EMPLOYEE BENEFITS ATTORNEYS Non-Qualified Deferred Compensation Plans Best Practices J. Marc Fosse, Esq. March 28, 2018 www.truckerhuss.com What is Section
More informationHawaii Tax Developments
Hawaii Tax Developments updated: July 17, 2009 Presented By Accuity LLP Tom Yamachika, Principal Pursuant to the provisions of Treasury Circular 230 and comparable State law, any tax advice contained in
More informationFinancial Planning and Tax Strategies
Financial Planning and Tax Strategies Course Description This course integrates federal taxation with overall financial planning. It will explore tax strategies relating to the central financial tactics
More informationU.S. Senate & House of Representatives Tax Cuts and Jobs Act. Proposals Relevant to Charitable Donors. December 14, 2017
U.S. Senate & House of Representatives Tax Cuts and Jobs Act Proposals Relevant to Charitable Donors December 14, 2017 Overview These charts review the tax proposals most relevant to charitable donors
More informationTaxes Primer September 27, 2013
Taxes Primer September 27, 2013 WHERE DOES THE MONEY COME FROM? Each year, some of the revenue the federal government collects comes from various taxes. In 2012, taxpayers paid almost $2.5 trillion, which
More informationSPECIAL REPORT. IMPACT. At this time, the framework is just a proposal. No legislative. IMPACT. If a tax reform package moves in Congress under the
Tax Briefing GOP s 2017 Tax Reform Framework September 29, 2017 Highlights Reduced and Consolidated Individual Tax Rates Elimination of Personal Exemptions 20% Corporate Tax Rate 25% Pass-through tax rate
More informationAdam Williams. Anthony Licavoli. Principal Tax Manager
1 2 Adam Williams Principal 734.302.4179 adam.williams@rehmann.com Anthony Licavoli Tax Manager 248.463.4598 anthony.licavoli@rehmann.com 3 4 5 What is your impression about the speed at which Congress
More information