The 183-day rule is one criteria used to determine if a non-citizen is considered a resident for tax purposes.

The Ultimate Guide to Tax Residencies & The 183-Day Rule

Exceptions to the Bona Fide Residence and the Physical Presence Tests

United States Income Tax Treaties - A to Z

The 183-Day Rule: 5 Things to Know When Establishing State Residency and Fighting Audits

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What Is the 183-Day Rule? You are a tax resident if you were physically present in the U.S. for 31 days of the current year and 183 days in the last three years, including the days present in the current year, 1/3 of the days from the previous year, and 1/6 of the days from the first year. Days that do not count as days of presence include:
Days that you commute to work in the U.S. from a residence in Canada or Mexico if you do so regularly
Days you are in the U.S. for less than 24 hours while in transit between two other countries
Days you are in the U.S. as a crew member of a foreign vessel
Days you are unable to leave the U.S. because of a medical condition that develops while you are there
Days in which you qualify as exempt, which includes foreign-government-related persons under an A or G visa, teachers and trainees under a J or Q visa; a student under an F, J, M, or Q visa; and a professional athlete competing for charity
Strictly speaking, the 183-day rule does not apply to U.S. citizens and permanent residents. The 183-day rule includes all the days present in the current year, 1/3 of the days you were present in year 2, and 1/6 of the days you were present in year 1. To pass the test, and thus be subject to U.S. taxes, the person in question must:
Have been physically present at least 31 days during the current year and;
Present 183 days during the three-year period that includes the current year and the two years immediately preceding it.

183-Day Rule

501(c) is a designation under the United States Internal Revenue Code that confers tax-exempt status to nonprofit organizations.

Tax Exempt Organization Search: Deductibility Status Codes

The 501(c) is a subsection under the United States Internal Revenue Code (IRC). The most common include:
501(c)(1): Any corporation that is organized under an act of Congress that is exempt from federal income tax
501(c)(2): Corporations that hold a title of property for exempt organizations
501(c)(3): Corporations, funds, or foundations that operate for religious, charitable, scientific, literary, or educational purposes
501(c)(4): Nonprofit organizations that promote social welfare
501(c)(5): Labor, agricultural, or horticultural associations
501(c)(6): Business leagues, chambers of commerce, etc., that are not organized for profit
501(c)(7): Recreational organizations
Groups that might fit the designated categories must still apply for classification as 501(c) organizations and meet all of the stipulations required by the IRS. The subsection relates to nonprofit organizations and tax law; specifically, it identifies which nonprofit organizations are exempt from paying federal income tax. In addition to being tax-exempt themselves, 501(c) organizations offer a tax advantage to others: A portion of donations they receive may be deductible from a taxpayer's adjusted gross income (AGI). Section 501(c) of the Internal Revenue Code designates certain types of organizations as tax-exempt—they pay no federal income tax.

501(c)

An abatement is a reduction in the level of taxation faced by an individual or company.

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What Is an Abatement? Since you're still paying tax on a portion of your property's value, a change in the tax rate or a special assessment could cause your property tax bill to increase. Some cities have property tax abatement programs that eliminate or significantly reduce property tax payments on a home for years or even decades. A real estate tax abatement may reduce a home's property taxes for a period of time, or may grant tax breaks to businesses. Another common scenario of tax abatement is property tax abatement.

Abatement

Ability-to-pay taxation is a progressive taxation principle that maintains that taxes should be levied according to a taxpayer's ability to pay.

The ability-to-pay philosophy of taxation maintains that taxes should be levied according to a taxpayer's ability to pay. Think of it this way: To a person with earns $1 million a year, $10,000 will make very little difference in their life, while it will make a big difference to a person earning only $60,000 a year.
The idea of a progressive income tax—that is, that people with the ability to pay more should pay a higher percentage of their income—is centuries old. Smith wrote: “The subjects of every state ought to contribute toward the support of the government, as near as possible, in proportion to their respective abilities; that is in proportion to the revenue which they respectively enjoy under the protection of the state.”
Advocates of ability-to-pay taxation argue that those who have benefitted most from the nation’s way of life in the form of higher incomes and greater wealth can afford and should be obligated to give back a little more to keep the system running. The ability-to-pay principle holds that those who have a greater ability to pay taxes—measured by income and wealth—should pay more. Ability-to-pay taxation argues that those who earn higher incomes should pay a greater percentage of those incomes in taxes compared with those who earn less.

Ability-To-Pay Taxation

Ability to pay is an economic principle that states that the amount of tax an individual pays should be dependent on the level of burden the tax will create relative to the wealth of the individual.

Ability to pay is an economic principle that states that the amount of tax an individual pays should be dependent on the level of burden the tax will create relative to the wealth of the individual. The ability to pay principle suggests that the real amount of tax paid is not the only factor that has to be considered and that other issues such as the ability to pay should also be factored into a tax system. The application of this principle gives rise to the progressive tax system, a system of taxation in which individuals with higher incomes are asked to pay more tax than individuals with lower incomes. Ability to pay is an economic principle that states that the amount of tax an individual pays should be dependent on the level of burden the tax will create relative to the wealth of the individual. For municipal debt issuers, ability to pay refers to the issuer’s or lender’s present and future ability to create sufficient tax revenue to fulfill its contractual obligations.

Ability to Pay

The accelerated cost recovery system was a U.S. federal tax break that was introduced in 1981 and replaced in 1986.

The accelerated cost recovery system (ACRS) is a depreciation method for assets with the goal of providing tax breaks. The accelerated cost recovery system (ACRS) was put out of use and replaced by the modified accelerated cost recovery system (MACRS) in 1986. It was for these reasons that the accelerated cost recovery system (ACRS) was replaced by the modified accelerated cost recovery system (MACRS). The accelerated cost recovery system (ACRS) is a depreciation method for assets with the goal of providing tax breaks. The accelerated cost recovery system (ACRS) is a depreciation method for assets with the goal of providing tax breaks.

Accelerated Cost Recovery System (ACRS)

Advance corporation tax is the prepayment of corporate taxes by companies in the U.K. that distributed dividend payments, but was abolished in 1999.

Advance Corporation Tax (ACT) is the prepayment of corporate taxes by companies in the United Kingdom that distributed dividend payments to shareholders. Prior to the abolishment of ACT on April 6, 1999, companies accumulated surplus ACT when the ACT paid on corporate dividends exceeded their ability to offset the tax against regular corporation tax. Shadow ACT refers to the system adopted to determine the extent to which companies can set off surplus ACT carried forward after April 5, 1999, against corporation tax arising on or after April 6, 1999. Companies paid the Advance Corporation Tax (ACT) before its main corporation taxes, when it paid dividends to shareholders. Pension funds and other tax-exempt institutions that did not pay taxes on dividends were entitled to be reimbursed by HM Treasury for any advance corporation taxes paid.

Advance Corporation Tax (ACT)

An arrangement between two jurisdictions that codifies tax laws to avoid double taxation of individuals or companies.

A bilateral tax agreement, a type of tax treaty signed by two nations, is an arrangement between jurisdictions that mitigates the problem of double taxation that can occur when tax laws consider an individual or company to be a resident of more than one country. Most income tax treaties include a “saving clause” that prevents citizens or residents of one country from using the tax treaty to avoid paying income tax in any country. A bilateral tax agreement, a type of tax treaty signed by two nations, is an arrangement between jurisdictions that mitigates the problem of double taxation that can occur when tax laws consider an individual or company to be a resident of more than one country. Both countries may enter into a bilateral tax agreement to determine which country should tax the income to prevent the same income from getting taxed twice. The agreements can deal with many issues such as taxation of different categories of income (i.e., business profits, royalties, capital gains, employment income), methods for eliminating double taxation (e.g., via the exemption method and credit method), and provisions such as mutual exchange of information and assistance in tax collection.

Bilateral Tax Agreement

Border adjustment tax (BAT) is a proposed tax on goods based on where they are sold rather than where they are produced.

Border adjustment tax is a short name for a proposed destination-based cash flow tax (DBCFT). It is a value-added tax on imported goods and is also referred to as a border-adjusted tax, destination tax or border tax adjustment. In this scenario, exported goods are exempt from tax while imported goods sold in the United States are subject to the tax. In February 2017, the proposal was the subject of heated debate with Gary Cohn, director of the National Economic Council, opposing the tax system and a lobby group, Americans for Prosperity (AFP) funded by the Koch brothers, initiating a plan to fight the tax. A tax on consumer goods typically increases consumer prices, but Auerbach's theory contends that the BAT would strengthen the domestic currency and that the stronger domestic currency would effectively reduce the price of imported goods.

Border Adjustment Tax (BAT)

The Canada Revenue Agency (CRA) or Agence du revenu du Canada is a federal agency that collects taxes and administers tax laws for the Canadian government.

Canada Revenue Agency (CRA) is a federal agency that collects taxes and administers tax laws for the Canadian government, as well as for many of Canada's provinces and territories. The CRA also administers the working income tax benefit (WITB), which is a refundable tax credit intended to provide tax relief for eligible working low-income individuals and families who are already in the workforce and to encourage other Canadians to enter the workforce. The CRA manages many different taxes such as personal income tax, business income tax, trust income tax, partnership income, and excise taxes. Canada Revenue Agency (CRA) is a federal agency that collects taxes and administers tax laws for the Canadian government, as well as for many of Canada's provinces and territories. The Canada Revenue Agency, or Agence du revenu du Canada, also oversees a variety of social and economic benefit and incentive programs via the tax system, along with international trade legislation.

Canada Revenue Agency (CRA)

Chapter 9 is a bankruptcy proceeding that provides financially distressed municipalities with protection from creditors by creating a plan to resolve the outstanding debt.

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Expand Chapter 9 is a bankruptcy proceeding that provides financially distressed municipalities with protection from creditors by creating a plan between the municipality and its creditors to resolve the outstanding debt. The intent of Chapter 9 is to negotiate a repayment plan between the municipality and creditors, which can include reducing the principal or interest rate on outstanding debt, extending the term and timeline of the loan repayments, and refinancing the debt by obtaining a new loan. Due to the 10th Amendment to the Constitution, federal bankruptcy courts have only limited jurisdiction in a Chapter 9 bankruptcy. As with Chapter 7 and Chapter 13, the filing of a Chapter 9 reorganization triggers an automatic stay, which stops all collection actions against the municipal debtor.

Chapter 9 Bankruptcy

As the tariff debate rages, the Chicken Tax lives on. It began a half-century ago when Europeans slapped a tariff on American chickens and the U.S. retaliated with a 25% tariff on imported light trucks. It's still in effect and it has had a lasting impact on U.S. industry.

Western Europe: Nobody But Their Chickens

The anti-consumer 25% ‘chicken tax’ on truck imports has insulated Big 3 from foreign competition for 50+ years

LICENSE TO POLLUTE: A special report. ; Light Trucks Increase Profits But Foul Air More Than Cars

Chicken Tax’ Hangs Over Pickup Truck Makers in Nafta Debate

The Chicken Tax is a 25% tariff on light trucks imported to the U.S., imposed in retaliation for European tariffs on American chicken imports. The Chicken Tax is a 25% tariff on light trucks imported to the U.S., imposed in retaliation for European tariffs on American chicken imports. The average U.S. tariff rate on industrial imports is now 2%.
Industrial farming methods developed in the U.S. in the years following World War II led to a vast increase in the production of chicken, and production efficiencies led to lower prices. The so-called Chicken Tax is actually a tariff of 25% on light truck imports was originally imposed in 1963 in retaliation for European tariffs on American chicken. The situation was dire enough that U.S. automakers and the United Auto Workers (UAW) union brought the issue of German auto imports to the presidential bargaining table, according to a 1997 _New York Times_ article.

Chicken Tax

A clearance certificate verifies that an entity has paid all its tax liabilities when it ceased to exist or was transferred to a new owner.

A clearance certificate is a certificate that verifies an entity has paid all its tax liabilities at the time the entity ceased to exist or transferred to a new owner. In the United States, the Internal Revenue Service issues clearance certificates for federal income and other tax purposes, and clearance certificates can be requested by any individual or corporation looking for confirmation that their taxes are in order. An estate whose assets have a high value may be required to obtain an estate tax clearance certificate when the estate owner dies and the estate's assets are distributed to heirs. A clearance certificate is a certificate that verifies an entity has paid all its tax liabilities at the time the entity ceased to exist or transferred to a new owner. A sales tax clearance certificate allows someone purchasing an existing business to ensure that they will not be responsible for any unpaid sales taxes upon becoming the business's new owner.

Clearance Certificate

Disclosure of Tax Avoidance Schemes (DOTAS) is the procedure introduced by the UK government in 2004 aimed at minimizing tax avoidance.

Guidance: Disclosure of Tax Avoidance Schemes (DOTAS)

DOTAS (Disclosure of Tax Avoidance Schemes) is the acronym used for the procedure introduced by the UK government in 2004 aimed at minimizing tax avoidance.﻿﻿ Tax avoidance in the UK, unlike tax evasion, is not illegal since it involves using the available tax laws to reduce one's tax burden. The types of tax covered by the DOTAS requirements include income and capital gains tax, corporate tax, stamp duty land tax, inheritance tax, value-added tax (VAT), and national insurance contributions. DOTAS (Disclosure of Tax Avoidance Schemes) is the acronym used for the procedure introduced by the UK government in 2004 aimed at minimizing tax avoidance.﻿﻿ Tax avoidance in the UK, unlike tax evasion, is not illegal since it involves using the available tax laws to reduce one's tax burden. The primary purpose of the Disclosure of Tax Avoidance Schemes (DOTAS) is to alert Her Majesty's Revenue and Customs (HMRC) of the schemes which individuals or corporations use to avoid tax. With DOTAS, the HMRC warns of the consequences of entering tax avoidance schemes and makes it clear that anyone doing so is liable to be challenged in court over the nonconformity.

Disclosure of Tax Avoidance Schemes (DOTAS)

Double taxation refers to income taxes paid twice on the same income source. It occurs when income is taxed at both the corporate and personal level, or by two nations.

Double taxation is a tax principle referring to income taxes paid twice on the same source of income. Most tax systems attempt, through the use of varying tax rates and tax credits, to have an integrated system where income earned by a corporation and paid out as dividends and income earned directly by an individual is, in the end, taxed at the same rate. When corporations pay out dividends to shareholders, those dividend payments incur income-tax liabilities for the shareholders who receive them, even though the earnings that provided the cash to pay the dividends were already taxed at the corporate level. Proponents of double taxation point out that without taxes on dividends, wealthy individuals could enjoy a good living off the dividends they receive from owning large amounts of common stock, yet pay essentially zero taxes on their personal income. Double taxation occurs when income is taxed at both the corporate level and personal level, as in the case of stock dividends.

Double Taxation

A federal measure called the Durbin Amendment introduced limits on transaction fees collected when debit card purchases are made.

Bank Profitability and Debit Card Interchange Regulation: Bank Responses to the Durbin Amendment

The Durbin Amendment is a part of the Dodd-Frank Wall Street Reform and Consumer Protection Act that limits transaction fees imposed upon merchants by debit card issuers. The amendment, named after U.S. Senator Richard J. Durbin and introduced in 2010, proposed to restrict these interchange fees, which averaged 44 cents per transaction based on 1% to 3% of the transaction amount, to 12 cents per transaction for banks with $10 billion or more in assets. When the bill became law in 2010, interchange fees were capped at 21 cents per transaction plus 5% of the transaction amount.﻿﻿ Some banks implemented new fees and eliminated free services in an attempt to offset their interchange fee revenue losses. Some of the new fees introduced included high fees on deposit accounts, increased penalties for insufficient funds, and monthly maintenance charges for accounts that do not maintain a higher minimum balance than was previously required. The Durbin Amendment is a part of the Dodd-Frank Wall Street Reform and Consumer Protection Act that limits transaction fees imposed upon merchants by debit card issuers.

Durbin Amendment

A duty can refer to either a form of taxation that is imposed on imported goods or the responsibilities that are held by an individual such as a CEO.

The term "duty" refers to a form of taxation levied on certain goods, services, or other transactions. The intent of this form of duty is to provide a form of commerce protection for each country's jobs, economy, environment, and other interests by controlling the influx and outflow of merchandise. This form of duty can be revoked in certain situations such as an airport's duty-free shop. When customers patronize a duty-free shop, commodities that are usually taxed such as cigarettes and alcohol will not have a duty levied on them. Customs duty rates are a percentage determined by the total value of the goods paid for in another country.

Duty

Dynamic scoring is a measure of the impact that proposed tax budgets would have on the budget deficit and the overall economy over time.

Dynamic scoring is a method of estimating the budgetary impact of a change in government policy, which accounts for the secondary economic effects of the policy on all sources of government revenue and expenses in addition to the direct effects of a policy on spending and revenue. Dynamic scoring is a method of estimating the budgetary impact of a change in government policy, which accounts for the secondary economic effects of the policy on all sources of government revenue and expenses in addition to the direct effects of a policy on spending and revenue. Dynamic scoring can be contrasted to static scoring, which estimates only the direct impact that a policy change will have on government revenues and expenditures without otherwise assuming any change in the economy as a result of the policy. To a large extent this is usually the point of the policy change in the first place, but we also know that often changes in government policy can come with unintended consequences and that the changes in people’s behavior may involve more than the immediate, direct response to the policy change. Dynamic scoring can provide a more complete picture of the impact of a policy change than static scoring, but it is also highly dependent on the type of model and assumptions used to estimate these secondary economic effects.

Dynamic Scoring

The Economic Recovery Tax Act of 1981 was a law for the largest tax cut in American history. Much of it was reversed a year later.

Besides tax cuts and accelerated depreciation deductions, other features of the legislation included easier rules for establishing employee stock ownership plans (ESOP); expanded eligibility for Individual Retirement Accounts (IRAs); a reduction in the capital-gains tax from 28% to 20%; and a higher estate-tax exemption. Although it is unlikely to be the final word, in 2012 the non-partisan Congressional Research Service analyzed tax rates and their economic effects from 1940 to 2010 and concluded that lowering top tax rates has no effect on economic growth or productivity, but does contribute to greater wealth inequality. Signed by Ronald Reagan during his first year in office, the Economic Recovery Tax Act of 1981 was the largest tax cut in U.S. history. Signed by President Ronald Reagan about six months after he took office, ERTA slashed the top income tax rate and allowed for faster expensing of depreciable assets.

Economic Recovery Tax Act of 1981 (ERTA)

The Economic Growth and Tax Reconciliation Relief Act of 2001 (EGTRRA) is a U.S. tax law that lowered tax rates and made changes to retirement plans. 

The Economic Growth and Tax Reconciliation Relief Act of 2001 (EGTRRA) is a U.S. tax law signed by President George W. Bush that made significant changes to retirement plan rules and overall tax rates. The other significant new plan was the Roth 401(k) and the related Roth 403(b) for certain public employees and employees of non-governmental organizations. This new employer-sponsored retirement plan similar allows access to an account with similar benefits as a Traditional Roth IRA, but in the structure of an employer-sponsored plan. The Economic Growth and Tax Reconciliation Relief Act of 2001 (EGTRRA) was a sweeping U.S. tax reform package that lowered income tax brackets, put into place new limits on the estate tax, allowed for higher contributions into an IRA and created new employer-sponsored retirement plans. The Economic Growth and Tax Reconciliation Relief Act of 2001 (EGTRRA) is a U.S. tax law signed by President George W. Bush that made significant changes to retirement plan rules and overall tax rates. This new plan allows the employee to benefit from different tax treatment while pooling their retirement investments with the employer plan.

Economic Growth And Tax Relief Reconciliation Act 2001

Energy tax is a tax levied on the production, distribution, or consumption of energy, electricity, or fuels.

An energy tax is a tax of fuels, energy generation, transmission, or consumption. The economic challenge with these types of taxes is that the property of price inelasticity that makes energy taxes such good sources of revenue can make it difficult and costly to use such a tax to change consumer and business behavior. In the long run a more moderate tax may have a better chance of achieving behavioral change at a reasonable cost, though some of the behavior change may also include unintended consequences such as businesses and residents leaving the taxed jurisdiction or adopting energy sources and practices that circumvent the tax without actually reducing emissions. Energy taxes can also be used as Pigouvian taxes to discourage certain behaviors that are believed to impose costs on others, such as a carbon tax on fossil fuels to reduce carbon emissions. An energy tax is a tax, excise, surcharge, or royalty that the government imposes on the production, distribution, or consumption of energy, electricity, or fuels.

Energy Tax

An enterprise zone is a geographic area that has been granted special tax breaks or other public assistance to promote economic development.

An enterprise zone is a geographic area that has been granted special tax breaks, regulatory exemptions, or other public assistance in order to encourage private economic development and job creation. Since 1983, the state's Urban Enterprise Program has offered a sales tax incentive to encourage shoppers to patronize the small businesses that line its Central Avenue business district. An enterprise zone is a geographic area that has been granted special tax breaks, regulatory exemptions, or other public assistance in order to encourage private economic development and job creation. Enterprise zones are geographic regions that are granted special status by a government in order to encourage development and economic growth. The zones may be granted favorable tax rates, regulatory exemptions, or other incentives to encourage businesses to stay in the area or locate in it.

Enterprise Zone

An environmental tariff is a tax on products imported to or exported from countries with unsatisfactory environmental pollution controls. 

Pollution and the Struggle for the World Product

Negotiations on Trade and the Environment

S.984 - International Pollution Deterrence Act of 1991

Eliminating Trade Barriers on Environmental Goods and Services

An environmental tariff, also known as an eco-tariff, is a tax on products imported from countries with inadequate environmental pollution controls. Proponents of environmental tariffs believe that these tariffs lead to a harmonious blend of efforts from nations to establish environmental standards and that the taxes encourage non-compliant countries to improve their processes. Direct environmental tariffs are uncommon because they tend to run afoul of international trade commitments and treaties, though other trade measures with similar environmental intent have become more common. By lowering barriers to trade for these and similar goods, rather than raising barriers to pollution-generating goods, the goals of promoting healthy environmental policies and fostering global economic development are thought to be made more compatible. In addition to increased international trade in environmental goods, there has been an increase in environmentally preferable products (EPPs) designed with smaller carbon footprints or otherwise lower environmental impact than their alternatives.

Environmental Tariff

The fiscal cliff refers to a combination of expiring tax cuts and across-the-board government spending cuts that was scheduled to become effective Dec. 31, 2012.

The fiscal cliff refers to a combination of expiring tax cuts and across-the-board government spending cuts that create a looming imbalance in the federal budget and must be corrected to avert a crisis. The key elements of the deal included an increase in the payroll tax by two percentage points to 6.2% for income up to $113,700, and a reversal of the Bush tax cuts for individuals making more than $400,000 and couples making over $450,000 (which entailed the top rate reverting from 35% to 39.5%). The long-term capital gains tax rate was to increase from 15 to 20%, and qualified dividend rates to increase to the individual's marginal tax rate up from a fixed 15% under the current plan. The fiscal cliff refers to a combination of expiring tax cuts and across-the-board government spending cuts that create a looming imbalance in the federal budget and must be corrected to avert a crisis. Many itemized deductions were subject to phase-out, and popular tax credits like the earned income credit (EITC), child tax credit, and American opportunity credits (AOTC) were to be reduced.

Fiscal Cliff

The Foreign Account Tax Compliance Act is a tax law that compels US citizens at home and abroad to file annual reports on foreign account holdings.

Summary of FATCA Reporting for U.S. Taxpayers

Foreign Account Tax Compliance Act Will COST More Money Than It Recovers, Warns CEO of deVere Group and Co-Founder of the Campaign to Repeal FATCA

Analysis: Critics Say New Law Makes Them Tax Agents

FATCA Targets Tax Evaders, But Critics Voice Concerns.

You are married filing a joint income tax return, and the total value of your specified foreign financial assets is more than $100,000 on the last day of the tax year or more than $150,000 at any time during the tax year.
You are married filing separate income tax returns, and the total value of your specified foreign financial assets is more than $50,000 on the last day of the tax year or more than $75,000 at any time during the tax year. According to Greenback Expat Tax Services, the Internal Revenue Service (IRS) defines the assets as:
Foreign pensions
Foreign stockholdings
Foreign partnership interests
Foreign financial accounts
Foreign mutual funds
Foreign issued life insurance
Foreign hedge funds
Foreign real estate held through a foreign entity (you don’t need to report the real estate, but the foreign entity itself is a specified foreign financial asset, and its maximum value includes the value of the real estate)
Your foreign home does NOT need to be reported. Withholdable payments in this instance refer to income generated from U.S. financial assets held by these banks and include interest, dividends, remunerations, wages and salaries, compensations, periodic profits, etc.
FFIs and NFFEs that agree to the law must annually report the name, address, and tax identification number (TIN) of each account holder that meets the criteria of a U.S. citizen, the account number, the account balance, and any deposits and withdrawals on the account for the year.
The reporting thresholds for foreign assets vary based on whether you file a joint income tax return or live abroad. For other H1B, L1, and other visa holders, to meet the substantial presence test, a foreign person must be physically present in the United States for at least 31 days during the current year and be physically present 183 days during the three-year period that includes the current year and the two years immediately before that, counting: (i) all the days the individual was present in the current year, and (ii) 1/3 of the days the individual was present in the year before the current year, and (iii) 1/6 of the days the individual was present in the year before last.

Foreign Account Tax Compliance Act (FATCA)

The Foreign Investment Funds (FIF) Tax is a tariff imposed on Australian residents.

Australia's Proposals for Taxation of Foreign Investment Funds: The Third Strike on Foreign Income The Third Strike on Foreign Income

Chapter 4 Taxation of Foreign Investment Fund (FIF) Interests

Foreign Investment Funds Tax or the FIF tax is a term that refers to an Australian tax tariff. By keeping some of the rules of the FIF tax, while moving other parts of the law to the general Australian tax code, the Australian government hopes to close tax loopholes and integrate the taxation system, so that the income earned is in the end taxed at the same rate. Now when Australian residents receive distributions from a foreign investment fund, the Australian government taxes the fund at the same rate as they tax the foreign investment fund’s domestic equivalent, and the FIF adheres to the same specific tax regulations. Foreign Investment Funds Tax or the FIF tax is a term that refers to an Australian tax tariff. The Australian government retained specific aspects of the FIF tax to make sure Australian citizens do not experience double taxation.

Foreign Investment Funds (FIF) Tax

Formal tax legislation is the process by which a proposed tax rule or tax change may become law in the United States.

Formal tax legislation is the process by which a proposed tax rule or tax change may become law in the United States. 8.  In the event the president vetoes the tax bill, Congress can make the changes that the President wants or override the veto with a two-thirds vote of each house; if successful, the tax bill becomes law without the signature of the President. The formal tax legislation process follows these specific steps:
1.  The tax bill originates in the House of Representatives and is referred to the Ways and Means Committee. Citizens can influence tax laws through the informal tax legislation process, which includes contacting members of Congress and elected officials, attending town or county meetings, participating in lobbying efforts, circulating and signing petitions, and by voting for particular candidates. Formal tax legislation is the process by which a proposed tax rule or tax change may become law in the United States.

Formal Tax Legislation

A free trade agreement reduces barriers to imports and exports between countries by eliminating all or most tariffs, quotas, subsidies, and prohibitions.

On the Principles of Political Economy and Taxation

Landon Lecture (April 27, 1978) Free Trade: Producer Versus Consumer

CAFTA-DR (Dominican Republic-Central America FTA)

A free trade agreement is a pact between two or more nations to reduce barriers to imports and exports among them. _Free trade agreements reduce or eliminate barriers to trade across international borders._
_Free trade is the opposite of trade protectionism._
_In the U.S. and the E.U., free trade agreements do not come without regulations and oversight._
For example, a nation might allow free trade with another nation, with exceptions that forbid the import of specific drugs not approved by its regulators, or animals that have not been vaccinated, or processed foods that do not meet its standards.
The benefits of free trade were outlined in _On the Principles of Political Economy and Taxation,_ published by economist David Ricardo in 1817.
Or, it might have policies in place that exempt specific products from tariff-free status in order to protect home producers from foreign competition in their industries. In modern international trade, few free trade agreements (FTAs) result in completely free trade. He argued that free trade expands the diversity and lowers the prices of goods available in a nation while better exploiting its homegrown resources, knowledge, and specialized skills.
Few issues divide economists and the general public as much as free trade. In fact, the American economist Milton Friedman said: “The economics profession has been almost unanimous on the subject of the desirability of free trade.”
Free-trade policies have not been as popular with the general public.

Free Trade Agreement (FTA)

Generation-skipping transfer tax is a federal tax on a transfer of property by gift or inheritance to a beneficiary that meets certain requirements.

Table of Contents
What Is the GSTT?
Understanding the GSTT
Direct vs. Indirect Skips
How Much Is the GSTT? The GSTT tax rate is a flat 40%.
Most people will never encounter the GSTT because of the high threshold: the tax only applies when the transferred amount exceeds $11.4 million per individual (for 2019).
The generation-skipping transfer tax (GSTT) is an additional tax on a transfer of property that skips a generation, known as a generation-skipping transfer (GST) for short. The generation-skipping transfer tax (GSTT) is a federal tax that results when there is a transfer of property by gift or inheritance to a beneficiary (other than a spouse) who is at least 37½ years younger than the donor. The generation-skipping transfer tax is imposed only if the transfer avoids incurring a gift or estate tax at each generation level. The generation-skipping transfer tax is a federal tax that results when there is a transfer of property by gift or inheritance to a beneficiary who is at least 37½ years younger than the donor.

Generation-Skipping Transfer Tax—GSTT

The Goods and Services Tax (GST) is a value-added tax levied on most goods and services sold for domestic consumption.

The goods and services tax (GST) is a value-added tax levied on most goods and services sold for domestic consumption. A country with a unified GST platform merges central taxes (e.g., sales tax, excise duty tax, and service tax) with state-level taxes (e.g., entertainment tax, entry tax, transfer tax, sin tax, and luxury tax) and collects them as one single tax. India has, since launching the GST on July 1, 2017, implemented the following tax rates:
A 0% tax rate applied to certain foods, books, newspapers, homespun cotton cloth, and hotel services.
A rate of 0.25% applied to cut and semi-polished stones.
A 5% tax on household necessities such as sugar, spices, tea, and coffee.
A 12% tax on computers and processed food.
An 18% tax on hair oil, toothpaste, soap, and industrial intermediaries.
The final bracket, taxing goods at 28%, applies to luxury products, including refrigerators, ceramic tiles, cigarettes, cars, and motorcycles.
The previous system with no GST implies that tax is paid on the value of goods and margin at every stage of the production process. Under a GST system, the previous tax paid can be applied against this additional tax to bring the effective tax rate to Rs. 1.50 – Rs. 1.00 = Rs. 0.50. Compared to a unified GST economy where tax is collected by the federal government and then distributed to the states, in a dual system, the federal GST is applied in addition to the state sales tax.

Goods and Services Tax (GST)

The harmonized sales tax is a hybrid of the Canadian goods and services tax and provincial sales tax applied to goods and services.

Table of Contents
What Is the HST?
Understanding the HST Prior to the HST's introduction in 1997, Canadian sales taxes were divided into the federal sales tax (GST) and the provincial sales tax (PST). The HST's Effect on Taxpayers
Canada's harmonized sales tax (HST) is a consumption tax paid by local consumers and businesses. The vendor collects the tax proceeds by adding the HST rate to the cost of goods and services and then remits the collected tax to the Canada Revenue Agency (CRA), the tax division of the federal government. The harmonized sales tax (HST) is a combination of federal and provincial taxes on goods and services in five Canadian provinces.

Harmonized Sales Tax (HST)

Hidden taxes are taxes indirectly assessed on consumer goods ranging from cigarettes to cable bills without the consumer being aware. 

Hidden taxes are taxes indirectly assessed on consumer goods without the explicitly knowledge of consumers who purchase the product. Most everyone is aware that a sales tax applies when they purchase goods in most states, but not many consumers fully grasp the extent to which hidden taxes are included in the final price of many products. Other examples of hidden taxes include taxes on cigarettes, alcohol, gambling, gasoline and hotel rooms. Hidden taxes are taxes indirectly assessed on consumer goods without the explicitly knowledge of consumers who purchase the product. These taxes are typically collected as part of an ordinary transaction, which serves to bury them in the final price, a price that is higher than it would be without the hidden tax.

Hidden Taxes

HM Revenue & Customs is the tax authority of the U.K. government responsible for collecting taxes and enforcing customs, among other duties.

Commissioners for Revenue and Customs Act 2005

Select Committee on Treasury Ninth Report

HRMC collects all direct and indirect taxes in the U.K., including income tax, corporation tax, capital gains tax, inheritance tax, value-added tax (VAT), excise duties, stamp duty land tax, air passenger duty, and the climate change levy. Other duties encompass the facilitation of legitimate international trade as well as the collection of trade statistics for the U.K.
One of the critical functions of HMRC is to ensure that the flow of money to the Chancellor of the Exchequer is seamless via its tax collection, compliance, and enforcement programs.﻿﻿ The agency, also known as Her Majesty's Revenue Services, is responsible for collecting taxes, paying child benefits, enforcing tax and customs laws, and enforcing the payment of minimum wage by employers. HMRC was formed in 2005 following the merger of the Inland Revenue and the Board of Customs and Excise, the agencies which formerly handled internal taxes and customs collection respectively.

HM Revenue and Customs (HMRC)

Induced taxes are taxes induced by changes in real economic activity that can act as automatic stabilizers on the macroeconomy.

Induced taxes are taxes applied as a fraction, rate, or percentage of income, spending, or profits such that a rise in income, spending, or profits induces an increase in the amount of the tax in some proportion. Induced taxes are taxes applied as a fraction, rate, or percentage of income, spending, or profits such that a rise in income, spending, or profits induces an increase in the amount of the tax in some proportion. On the other hand, if an economic downturn or negative economic shock hits and income falls, then with the 10% income tax the total amount of income taxes being paid also falls. Sales taxes, value-added taxes, taxes on investment, and taxes on business incomes and profits have a similar effect on changes in consumer spending and business investment. Automatic stabilizers are standing laws, taxes, or other policy measures that boost aggregate demand during slow economic times and rein in aggregate demand during periods when economic growth accelerates too fast, and do not require any new laws or changes to policies to function.

Induced Taxes

The interest equalization tax (IET) was a federal levy on the purchase price of foreign stocks and bonds bought by Americans.

Foreign Relations of the United States, 1964-1968, Volume VIII, International Monetary and Trade Policy

H.R.3577 - Interest Equalization Tax Extension Act

Brief Summary of the Provisions of H.R. 8000, the 'Interest Equalization Tax Act of 1963

The interest equalization tax (IET) was a federal levy on the purchase price of foreign stocks and bonds bought by Americans. At the time it was introduced, the IET was designed to decrease the U.S. balance of payments deficit by discouraging investment in foreign securities and encouraging investment in domestic securities. At the time it was introduced, the IET was designed to decrease the U.S. balance of payments deficit by discouraging investment in foreign securities and encouraging investment in domestic securities. The interest equalization tax (IET) was a federal levy on the purchase price of foreign stocks and bonds bought by Americans. The interest equalization tax (IET) was a federal levy on the purchase price of foreign stocks and bonds bought by Americans.

Interest Equalization Tax (IET)

IRS Publication 15-A is the publication that provides employers with information about their filing requirements for independent contractors among others.

IRS Form 15-A is a supplement to IRS Form 15 and helps employers calculate withholding taxes on income, Social Security, Medicare, as well as providing the Federal Unemployment tax tables. Additional unusual situations covered in IRS Form 15-A include: how to handle temporary work relocation assignments, which is defined as performing work in a different location outside a certain proximity from the primary work location and for less than one year; how to handle scholarship and fellowship payments; how to treat back pay and golden parachute one-time payouts. IRS Form 15-A is a supplement to IRS Form 15 and helps employers calculate withholding taxes on income, Social Security, Medicare, as well as providing the Federal Unemployment tax tables. The IRS released the new Form 15-A in the first half of 2018 and, as is true for all new forms released during a year when major tax changes are made, tax filers should check the IRS.gov website frequently for any updates before filing their 2018 returns. IRS Publication 15-A classifies employees into four types: independent contractor, common-law employee, statutory employee and statutory non-employee.

IRS Publication 15-A: Employer's Supplemental Tax Guide

IRS Publication 78 is a document that is published by the Internal Revenue Service (IRS). The document lists organizations that qualify to receive tax-deductible contributions.

IRS Publication 78 is a document published by the Internal Revenue Service (IRS) that lists organizations that qualify to receive tax-deductible contributions, as described in Section 170(c) of the Internal Revenue Code of 1986. Certain other eligible donees (i.e., churches, group ruling subordinates, and governmental units) are not listed in this database, according to the IRS, which states that you may deduct a charitable contribution made to, or for the use of, any of the following organizations that otherwise are qualified under section 170(c) of the Internal Revenue Code:
A state or United States possession (or political subdivision thereof), or the United States or the District of Columbia, if made exclusively for public purposes
A community chest, corporation, trust, fund, or foundation, organized or created in the United States or its possessions, or under the laws of the United States, any state, the District of Columbia, or any possession of the United States, and organized and operated exclusively for charitable, religious, educational, scientific, or literary purposes, or for the prevention of cruelty to children or animals
A church, synagogue, or other religious organization
A war veterans' organization or its post, auxiliary, trust, or foundation organized in the United States or its possessions
A nonprofit volunteer fire company
A civil defense organization created under federal, state, or local law (this includes unreimbursed expenses of civil defense volunteers that are directly connected with and solely attributable to their volunteer services)
A domestic fraternal society, operating under the lodge system, but only if the contribution is to be used exclusively for charitable purposes
A nonprofit cemetery company if the funds are irrevocably dedicated to the perpetual care of the cemetery as a whole and not a particular lot or mausoleum crypt
Beginning in the tax year 2019, taxpayers are able to deduct up to 60% of their adjusted gross income (AGI) in charitable contributions. Individuals can claim deductions of both cash and non-cash items made to qualified organizations, with typical deductions not exceeding 60% of the taxpayer's adjusted gross income (AGI).
IRS Publication 78 is a set of tax guidelines spelling out which types of organizations may receive tax-deductible contributions.
Examples include charitable organizations, community trusts, churches or synagogues, and certain fraternal societies, among others.
Charitable giving is an important and sizable income tax deduction for American taxpayers, so these guidelines are helpful for determining eligibility. IRS Publication 78 is a document published by the Internal Revenue Service (IRS) that lists organizations that qualify to receive tax-deductible contributions, as described in Section 170(c) of the Internal Revenue Code of 1986. The IRS offers an online version of IRS Publication 78 on its website, which allows taxpayers to quickly check to see if a charitable organization qualifies for tax-deductible contributions.

IRS Publication 78

The Jobs and Growth Tax Relief Reconciliation Act was a U.S. tax law passed in 2003, lowering the individual income tax rate on corporate dividends. 

The Jobs and Growth Tax Relief Reconciliation Act (JGTRRA) was a U.S. tax law Congress passed on May 23, 2003, which lowered the maximum individual income tax rate on corporate dividends to 15%.
The JGTRRA was put forward as part of an effort to jump-start the U.S. economy following the attacks of 9/11 and the 2001 recession. The Jobs and Growth Tax Relief Reconciliation Act (JGTRRA) was a U.S. tax law Congress passed on May 23, 2003, which lowered the maximum individual income tax rate on corporate dividends to 15%.
The JGTRRA was put forward as part of an effort to jump-start the U.S. economy following the attacks of 9/11 and the 2001 recession. Following the recession of 2001 and the 9/11 attacks, the Jobs and Growth Tax Relief Reconciliation Act (JGTRRA) was passed into law and did achieve its goal of spurring the U.S. economy. By reducing the amount of tax investors paid on dividends and capital gains, public companies were encouraged to pay dividends instead of holding onto their cash, thereby stimulating the overall economy. More controversially, the law no longer treated capital gains as regular income but instead as long-term capital gains.

Jobs And Growth Tax Relief Reconciliation Act of 2003

The kiddie tax is a tax law imposed on individuals under 19 or 23 years of age whose unearned income surpasses an annually determined threshold.

The kiddie tax is a special tax law created in 1986 to address investment and unearned income tax for individuals under 19 years of age—or dependent full-time students under 23.
The kiddie tax prevents parents from avoiding taxes by transferring large gifts of stock.
All unearned income over the threshold is taxed at the parent’s marginal income tax rate rather than the lower child’s tax rate.
It applies to all children who are 18 years of age or under—or dependent full-time students under 23.
The kiddie tax applies to most unearned income that a child receives and does not apply to any salary or wages.
The kiddie tax is a tax imposed on individuals under a certain age (under 19 years old, and full-time students age 19-23 years old), whose investment and unearned income is higher than an annually determined threshold.
This rule is designed to prevent parents from exploiting a tax loophole where their children are given large gifts of stock. The kiddie tax is a special tax law created in 1986 to address investment and unearned income tax for individuals under 19 years of age—or dependent full-time students under 23.
The kiddie tax prevents parents from avoiding taxes by transferring large gifts of stock.
All unearned income over the threshold is taxed at the parent’s marginal income tax rate rather than the lower child’s tax rate.
It applies to all children who are 18 years of age or under—or dependent full-time students under 23.
The kiddie tax applies to most unearned income that a child receives and does not apply to any salary or wages.
The kiddie tax is a tax imposed on individuals under a certain age (under 19 years old, and full-time students age 19-23 years old), whose investment and unearned income is higher than an annually determined threshold.
This rule is designed to prevent parents from exploiting a tax loophole where their children are given large gifts of stock. Under the kiddie tax law, all unearned income over the threshold is taxed at the parent’s marginal income tax rate rather than the child’s tax rate. The Tax Cuts and Jobs Act of 2017 temporarily changed the kiddie tax to use the tax rates that apply to estates and trusts rather than the tax rate of the child's parents. In 2020, unearned income under $1,100 qualifies for the standard deduction, the next $1,100 is taxed at the child’s tax rate, which is very low—sometimes zero percent—and then anything in excess of $2,200 is taxed at the guardian’s tax rate, which could be as high as 37%.

Kiddie Tax

The loss disallowance rule limits a corporation's ability to claim the losses of a subsidiary business for tax purposes. 

The loss disallowance rule is a rule created by the IRS that prevents a consolidated group or business conglomerate from filing a single tax return on behalf of its subsidiaries in order to claim a tax deduction for losses on the value of the subsidiary's stock. If that corporation acquires a smaller company as a subsidiary, and that subsidiary operates at a $200,000 loss that year, according to the loss disallowance rule, the corporation at the top cannot file a tax return that includes that subsidiary and its loss as a way to bring down the corporation’s net profit to $800,000. The loss disallowance rule is a rule created by the IRS that prevents a consolidated group or business conglomerate from filing a single tax return on behalf of its subsidiaries in order to claim a tax deduction for losses on the value of the subsidiary's stock. In this case, the Federal Circuit Court of Appeals rejected the IRS's duplicated loss component of the loss disallowance rule. Under the rules at the time, Rite Aid was allowed to deduct its loss on the sale of Penn Encore.

Loss Disallowance Rule (LDR)

A Mello-Roos is an ad hoc California tax district created with voter approval in order to fund a specific infrastructure project.

A Mello-Roos is an ad hoc California tax district created to finance an infrastructure project. The Mello-Roos tax is named after the sponsors of the law, California State Sen. Henry Mello and State Assemblyman Mike Roos. A Mello-Roos is a special tax assessment district created in California to finance local infrastructure or services. The law permitted Mello-Roos districts was created to allow communities to raise money for local projects despite the restrictions of Proposition 13 property tax caps. Mello-Roos taxes are usually listed as a line item on a property’s annual tax bill, though occasionally a district will send homeowners a separate bill.

Mello-Roos

The Protecting Americans from Tax Hikes (PATH) Act was created to change tax laws, renew existing laws, and protect people against tax fraud.

Under the PATH Act, taxpayers who file early in the year for an Earned Income Tax Credit (EITC) or Additional Child Tax Credit (ACTC) may have to wait until after Feb. 15 to receive their refund. The PATH Act includes an exclusion that allows an eligible wrongfully-incarcerated individual a one-year window to file refund claims related to restitution or monetary awards (including civil damages) received and reported in a prior tax year. The PATH Act was introduced to ensure that all Americans are provided with the correct refund from the Internal Revenue Service (IRS) by extending expired tax laws and introducing new laws to reduce fraud. The Protecting Americans from Tax Hikes (PATH) Act of 2015 includes changes to the tax laws that extend many expiring laws and protect taxpayers against fraud.

Protecting Americans From Tax Hikes (PATH) Act

The pick-up tax allowed states to share in federal estate tax proceeds but was phased out completely by 2005.

H.R. 1836 -- Economic Growth and Tax Relief Reconciliation Act of 2001

How Do State Estate and Inheritance Taxes Work

The pick-up tax was an estate tax levied by individual states, allowing them to share in the proceeds and revenue from federal estate taxes. The pick-up tax was phased out with the passage of the Economic Growth Tax Relief Reconciliation Act (EGTRRA) of 2001 and completely ended in 2005.﻿﻿﻿﻿ Some states replaced the pick-up tax with their own new estate taxes.
A pick-up tax was an estate tax levied by individual states, allowing them to share in the revenue from federal estate taxes.
The pick-up tax was phased out in 2001 and eliminated in 2005.
This tax didn't increase the tax liability of an estate but gave states a portion of the federal government's estate tax. Although states were able to claim a portion of an individual's federal estate transfer tax, the pick-up tax did not increase the estate's tax liability. The pick-up tax was an estate tax levied by individual states, allowing them to share in the proceeds and revenue from federal estate taxes. Had the federal government eventually completely phased out the federal estate tax, many states may have considered eliminating it as well, realizing that the administrative costs for auditing and collecting estate taxes on the state level from relatively few people may not be worth the potential revenues.

Pick-Up Tax

Pump priming is the action taken to stimulate an economy, usually during a recessionary period, through government spending and interest rate and tax reductions.

Pump priming is the action taken to stimulate an economy, usually during a recessionary period, through government spending and interest rate and tax reductions. Pump priming relates to the Keynesian economic theory, named after noted economist John Maynard Keynes, which states that government intervention within the economy, aimed at increasing aggregate demand, can result in a positive shift within the economy. Pump priming is the action taken to stimulate an economy, usually during a recessionary period, through government spending and interest rate and tax reductions. This is based on the cyclic nature of money within an economy, in which one person’s spending directly relates to another person’s earnings, and that increase in earnings leads to a subsequent increase in spending. Pump priming involves introducing relatively small amounts of government funds into a depressed economy in order to spur growth.

Pump Priming

A regressive tax is one that is applied uniformly regardless of income, as opposed to a progressive tax, which is based on income.

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What Is a Regressive Tax? Although the United States has a progressive taxation system when it comes to income tax, meaning higher income earners pay a higher percentage of taxes each year compared to those with a lower income, we do pay certain levies that are considered to be regressive taxes. As such, most income tax systems employ a progressive schedule that taxes high-income earners at a higher percentage rate than low-income earners, while other types of taxes are uniformly applied. For example, if two families travel to the Grand Canyon National Park and pay a $30 admission fee, the family with the higher income pays a lower percentage of its income to access the park, while the family with the lower-income pays a higher percentage. This kind of tax is a bigger burden on low-income earners than high-income earners, for whom the same dollar amount equates to a much larger percentage of total income earned.

Regressive Tax

The Revenue Act of 1862 was passed by Congress to fund the Union in the American Civil War and created the Bureau of Internal Revenue. 

The Civil War: The Senate's Story. Featured Document: The Revenue Act of 1861

Thirty-Seventh Congress. Session II. Ch. 110-112, 116, 119. 1862

Amendments to the Constitution: A Brief Legislative History

The Revenue Act of 1862 was an expansion of the first U.S. income tax established under the previous Revenue Act of 1861. This act is notable for its dramatic expansion of goods and services subject to federal excise, the introduction of the first progressive income tax, and the establishment of a centralized federal tax bureaucracy. It is notable for introducing the first progressive income tax in the U.S. and for establishing a separate federal tax bureaucracy that would eventually become the modern Internal Revenue Service (IRS). The act replaced the 3% tax on incomes above $800 under the 1861 act (which had not even been collected yet) with a progressive tax of 3% on incomes between $600 and $10,000 and a 5% tax on incomes over $10,000. The Revenue Act of 1861, passed the previous year, had already introduced the first direct federal income tax to help fund the war.

Revenue Act of 1862

Trade Expansion Act of 1962 Sec. 232 authorizes the U.S. President to adjust imports of goods from other countries through tariffs and other means.

Section 232 of the Trade Expansion Act of 1962

Remarks Upon Signing the Trade Expansion Act

The Effect of Imports on the National Security

Fact Sheet: Section 232 Investigations: The Effect of Imports on National Security

The Effect of Imports of Steel on the National Security

Secretary Ross Releases Steel and Aluminum 232 Reports in Coordination with White House

U.S. Department of Commerce Announces Steel and Aluminum Tariff Exclusion Process

Section 232 of the Trade Expansion Act of 1962 authorizes the President of the United States, through tariffs or other means, to adjust the imports of goods or materials from other countries if it deems the quantity or circumstances surrounding those imports to threaten national security.
The Trade Expansion Act of 1962 was signed by President John F. Kennedy, who called it, “…the most important piece of legislation, I think, affecting economies since the passage of the Marshall Plan.”
The Trade Expansion Act of 1962 was passed to promote the general welfare, foreign policy, and security of the United States through international trade agreements.Section 232 of the Act allows the president of the United States to impose tariffs through executive action, bypassingcongress under certain circumstances.
President Trump famously utilized Section 232 to begin a series of tit-for-tat tariffs with global exporters leading to trade wars with nations around the world, and in particular China.
To investigate Section 232 of the Trade Expansion Act of 1962, the Secretary of Commerce may self-initiate the investigation, or an interested party may initiate an investigation through an application. Section 232 of the Trade Expansion Act of 1962 authorizes the President of the United States, through tariffs or other means, to adjust the imports of goods or materials from other countries if it deems the quantity or circumstances surrounding those imports to threaten national security.
The Trade Expansion Act of 1962 was signed by President John F. Kennedy, who called it, “…the most important piece of legislation, I think, affecting economies since the passage of the Marshall Plan.”
The Trade Expansion Act of 1962 was passed to promote the general welfare, foreign policy, and security of the United States through international trade agreements.Section 232 of the Act allows the president of the United States to impose tariffs through executive action, bypassingcongress under certain circumstances.
President Trump famously utilized Section 232 to begin a series of tit-for-tat tariffs with global exporters leading to trade wars with nations around the world, and in particular China.
To investigate Section 232 of the Trade Expansion Act of 1962, the Secretary of Commerce may self-initiate the investigation, or an interested party may initiate an investigation through an application. Wilbur Ross, the U.S. Secretary of Commerce, reported that the excess production of steel and the present quantities of steel imports were, “…weakening our internal economy and shrinking \[of our\] ability to meet national security production requirements in a national emergency…”﻿﻿ The department's report also stated that United States steel imports were nearly four times our exports and that aluminum imports had risen to 90% of total demand for primary aluminum. Ross had recommended in the investigation report:
a global tariff of at least 24% on steel imports from all countries, or
a minimum 53% tariff on steel imports from 12 countries including Brazil, China, Costa Rica, Egypt, India, Malaysia, Republic of Korea, Russia, South Africa, Thailand, Turkey, and Vietnam, or
a quota on steel products from all countries equal to 63% of each country's 2017 exports to the U.S.
Canada and Mexico were granted exemptions from the tariffs, although those countries are facing additional tariffs on other goods and materials. On March 8, 2018, Trump exercised his presidential authority under Section 232 of the Trade Expansion Act of 1962 to impose a 25% tariff on steel imports and a 10 percent tariff on aluminum imports citing national security concerns.

Section 232 of the Trade Expansion Act Defiiniton

Section 1250 of the U.S. Internal Revenue Service Code states the IRS should treat a gain from the sale of depreciated real property as ordinary income. 

Section 1250 of the United States Internal Revenue Code is a rule establishing that the IRS will tax a gain from the sale of depreciated real property as ordinary income if the accumulated depreciation exceeds the depreciation calculated with the straight-line method. Section 1250 bases the amount of tax due on the property type—on whether it is residential or nonresidential real estate—while also factoring in how many months the filer owned the property in question.
Section 1250 of the U.S. Internal Revenue Code establishes that the IRS will tax a gain from the sale of depreciated real property as ordinary income, if the accumulated depreciation exceeds the depreciation calculated with the straight-line method. Section 1250 states that if a real property sells for a purchase price that produces a taxable gain, and the owner depreciates the property using the accelerated depreciation method, the IRS taxes the difference between the actual depreciation and the straight-line depreciation as ordinary income. Section 1250 of the United States Internal Revenue Code is a rule establishing that the IRS will tax a gain from the sale of depreciated real property as ordinary income if the accumulated depreciation exceeds the depreciation calculated with the straight-line method. Due to the fact that the accumulated straight-line depreciation amounts to $100,000 (the $800,000 initial price, divided by 40 years, multiplied by five years of use), the Internal Revenue Service must then tax $20,000 of the actual depreciation exceeding straight-line depreciation, as ordinary income.

Section 1250

A solidarity tax is a government-imposed tax that is levied in an attempt to provide funding toward theoretically unifying (or solidifying) projects.

A solidarity tax is a government-imposed tax that is levied in an attempt to provide funding towards theoretically unifying (or solidifying) projects. Since the solidarity tax was intended to be a short-term surcharge or supplementary tax on top of regular income taxes, the long-term German solidarity tax has been under scrutiny for being unconstitutional. In 2017, the French government agreed to abolish the solidarity tax on wealth and replace it with a solidarity tax on property (from January 1, 2018), which will have the same threshold and rate as ISF but will be payable only on property asset—not shares, bonds or life insurance. In 2018, talks of a solidarity tax cut between the country’s two main political parties, the Christian Democrat Union (CDU) and the Social Democratic Party (SPD), to reduce the solidarity tax on low- and middle-income taxpayers were agreed on. The solidarity tax has been considered or introduced in several nations, most notably Germany, whose solidarity tax was utilized to help rebuild eastern Germany.

Solidarity Tax

A special assessment tax is a local surtax in addition to regular property taxes that is levied on homeowners to pay for a specific project.

A special assessment tax is a surtax levied on property owners to pay for specific local infrastructure projects such as the construction or maintenance of roads or sewer lines. Whether or not a special assessment tax is deductible from federal taxes depends on the boundaries of the special assessment district and the nature of the project funded by the tax. A special assessment tax is a local tax in addition to property taxes that is levied on homeowners to fund a specific project. A special assessment tax is a surtax levied on property owners to pay for specific local infrastructure projects such as the construction or maintenance of roads or sewer lines. For example, if the population of a small town has declined dramatically, a special assessment tax may be necessary to continue to operate schools, the police department, or a library.

Special Assessment Tax

A stamp duty land tax (SDLT) is a tax imposed by the U.K. government on the purchase of land and properties with values over a certain threshold.

Stamp Duty Land Tax: Residential property rates

Stamp Duty Land Tax: Rates for non-residential and mixed land and property

Stamp Duty Land Tax: Shared ownership property

Stamp Duty Land Tax: Reliefs and exemptions

What is stamp duty tax and why do we pay it? the property transaction tax explained

Stamp duty land tax receipts in the United Kingdom from 2000/01 to 2019/20

Exemptions on lodging the stamp duty land tax return are standard in cases where no money is exchanged on the transfer of a property or where the freehold property purchase is less than £40,000.
If the purchase of residential property means the buyer will have more than one property, an additional rate of 3% is levied on top of the standard SDLT amount.﻿﻿ Special rates apply to the purchase of properties by corporate entities, individuals who purchase six or more properties in one transaction, or for multiple purchases or transfers conducted between the same buyer and seller.
Tax relief is available in certain circumstances, which may reduce the amount of SDLT payable. People who live in England and Northern Ireland are subject to the stamp duty land tax whenever they purchase property of any kind or transfer it in kind for payment, including:
Residential property: intended for use as the principal residence of the purchaser
Non-residential land and property: this includes commercial property, such as shops or offices, and land for farming The term stamp duty land tax (SDLT) refers to a tax imposed by the U.K. government on the purchase of land and properties with values over a certain threshold. Even when the value of the land or property purchased is below the stamp duty land tax threshold, the HMRC requires an SDLT return to being lodged, unless there is an exemption.

Stamp Duty Land Tax (SDLT)

Governments levy stealth taxes to increase their revenues without raising the ire of taxpayers. 

Stealth taxes are a type of tax levy. The defining feature of a stealth tax is that the formal taxpayer passes the cost of the tax along to others via higher expenses or lower payments, and the ultimate payer of the tax is unaware they shoulder the burden. Stealth taxes can vary, depending on the kind of tax, specific tax provisions, and the ability of various parties to avoid or shift the tax onto others. They can take the form of business income taxes, sales taxes, property taxes, fees, surcharges, business licensing and permitting costs, etc. Stealth taxes sometimes arise from government regulations that do not directly raise any tax revenue, but increase the cost of doing business.

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