Overview of Kiddie Tax Under the Kiddie Tax rules, a child’s investment income above a certain threshold is subject to the parent’s tax rate, rather than the child’s own tax rate. This threshold is currently set at $2,200 for the tax year 2021. Any investment income above this threshold is … …
What is Ability-to-Pay Taxation? Ability-to-Pay taxation is a principle in tax policy that suggests individuals or entities should contribute to the funding of public goods and services based on their ability to pay, rather than on a flat rate or fixed amount. This concept recognizes that individuals with higher incomes … …
Definition of Tobacco Tax and Cigarette Tax Tobacco tax and cigarette tax refer to the levies imposed by governments on the production, sale, and consumption of tobacco products, specifically cigarettes. These taxes are implemented with the aim of reducing tobacco consumption, promoting public health, and generating revenue for the government. … …
Taxation: Definition and Importance Taxation is the process of imposing financial charges or levies on individuals, businesses, or other entities by the government. It is an essential aspect of any modern society as it provides the necessary funds for the government to carry out its functions and provide public goods … …
Tax-Advantaged: Definition, Account Types, and Benefits A tax-advantaged account is a type of financial account that offers certain tax benefits to individuals. These accounts are designed to encourage saving and investment by providing tax incentives. Account Types There are several types of tax-advantaged accounts available to individuals. Some of the … …
Tax Reform Act of 1986: Overview The main objective of the Tax Reform Act of 1986 was to simplify the tax code and reduce tax rates. It aimed to create a fairer and more efficient tax system by eliminating loopholes and deductions that favored certain industries or individuals. Key Changes … …
What is a Tax Lien? If you have a tax lien, it’s crucial to take action to resolve it as soon as possible. Ignoring a tax lien can lead to further penalties and interest charges, and the government may take more aggressive action to collect the debt. To resolve a … …
Tax Equity and Fiscal Responsibility Act of: What You Need to Know The Tax Equity and Fiscal Responsibility Act (TEFRA) is a United States federal law that was enacted in 1982. It was designed to address the growing budget deficit and promote fiscal responsibility. TEFRA made significant changes to the … …
Section 1250 Property Taxation: An Overview Section 1250 property taxation refers to the tax treatment of certain types of real property, particularly depreciable assets, under the United States tax code. This section of the tax code is important for individuals and businesses who own and dispose of real estate assets, … …
What is a Regressive Tax? A regressive tax is a type of tax that takes a larger percentage of income from low-income individuals compared to high-income individuals. In other words, as income decreases, the tax burden increases. This is in contrast to a progressive tax, where the tax burden increases … …
Pump Priming: Definition and Examples of Use in the U.S. and Japan Pump priming is an economic strategy used by governments to stimulate economic growth and increase consumer spending. It involves injecting funds into the economy through various means, such as government spending, tax cuts, or monetary policies, with the … …
What is the Jobs And Growth Tax Relief Reconciliation Act? The JGTRRA introduced a series of tax cuts and changes to the existing tax laws, with the goal of providing relief to individuals and businesses. The act was designed to boost consumer spending, encourage investment, and ultimately stimulate economic activity. … …
Overview of HM Revenue & Customs HM Revenue & Customs (HMRC) is the tax authority of the United Kingdom. It is responsible for collecting taxes, enforcing tax laws, and ensuring compliance with tax regulations. HMRC plays a crucial role in maintaining the financial stability of the country and funding public … …
Hidden Taxes: Exploring the Benefits and Drawbacks Examples of hidden taxes include excise taxes on alcohol, tobacco, and gasoline, as well as tariffs on imported goods. These taxes are often implemented to discourage certain behaviors, such as excessive consumption of harmful products or to protect domestic industries from foreign competition. … …
What is Harmonized Sales Tax (HST) in Canada? The Harmonized Sales Tax (HST) is a consumption tax that combines the federal Goods and Services Tax (GST) with the provincial sales tax (PST) in participating provinces in Canada. It is designed to streamline the tax system and make it more efficient … …
Definition and Purpose of GST The Goods and Services Tax (GST) is a consumption-based tax imposed on the supply of goods and services in a country. It is designed to replace multiple indirect taxes levied by the central and state governments, simplifying the tax structure and reducing tax evasion. The … …
What is Free Trade Agreement (FTA)? A Free Trade Agreement (FTA) is a legally binding agreement between two or more countries that eliminates or reduces barriers to trade and investment. It is designed to promote economic integration and cooperation by removing tariffs, quotas, and other trade barriers. FTAs are typically … …
Foreign Account Tax Compliance Act (FATCA) Definition and Rules The Foreign Account Tax Compliance Act (FATCA) is a United States federal law that aims to prevent tax evasion by U.S. taxpayers who hold financial assets outside of the country. It was enacted in 2010 as part of the Hiring Incentives … …
Economic Recovery Tax Act Overview The Economic Recovery Tax Act (ERTA) was a major tax reform legislation passed by the United States Congress in 1981. It was signed into law by President Ronald Reagan with the aim of stimulating economic growth and recovery. ERTA introduced significant changes to the federal … …
183-Day Rule: Definition and Importance The 183-day rule is a legal provision used in tax laws to determine an individual’s residency status for tax purposes. It states that if an individual spends 183 days or more in a particular country within a given tax year, they may be considered a … …