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I don't know why this article says that Adam Smith supported income tax in generalized way, putting him at the pair of Marx (although Adam Smith might advocate income tax in very particular cases). In his book (avalable online) it says:
"If direct taxes upon the wages of labour have not always occasioned a proportionable rise in those wages, it is because they have generally occasioned a considerable fall in the demand for labour. The declension of industry, the decrease of employment for the poor, the diminution of the annual produce of the land and labour of the country, have generally been the effects of such taxes."
"Absurd and destructive as such taxes are, however, they take place in many countries."
I will proceed to remove the reference to Adam Smith, leaving alone the citation of karl marx.
Also it would be good to discuss some criticism of income taxes in the article
I moved the following commentary from the article to here:
Non-neutral, unverified. Stay tuned. Famspear 18:07, 6 December 2006 (UTC)
Post-script: Dear anonymous user at IP 75.72.81.229: The arguments in the above commentary, (which was posted by IP 75.72.81.229), have been covered over and over here in Wikipedia. Please read all talk (discussion) pages.
It is correct to say that the U.S. Supreme Court and other Federal courts have stated, over and over, that the Amendment conferred no new powers of taxation. However, the statement that "if income tax was unconstitutional before the 16th, it was also after the 16th" is, from a legal standpoint, nonsensical.
Regarding the IRS Tax Code, there is no such thing as a tax that is not "mandatory." There is no such thing as a "table of taxes you are liable for" -- taxes are not listed that way in the statute.
The whole voluntary - not voluntary argument has already been covered and explained.
The privacy statement in the Form 1040 instruction booklet is also irrelevant. Please read the relevant articles.
Contacting the IRS, a tax attorney, or your local political representative will almost surely yield the correct answer -- which is that the U.S. Federal income tax is constitutional and is being applied correctly.
Have a nice day. Famspear 18:22, 6 December 2006 (UTC)
It is utterly apparent your objection is not to the usage of words you sought criticism upon, but it’s substance. Your objection is Non-Neutral.
You gave no references in your objections. Please revise your objection.
Whoa! What a touch of subtlety to suggest sweeping it under the rug of “protestor conspiracy.” That's a bit of leap, my friend.
And no, it hasn’t been covered and explained. Tilde, Tilde, Ssauble 15:25, 8 February 2007 (UTC)
Way to be nonbiased!! (sarcastically speaking). If you are giving all of the details, then the law for income taxes should be explained in this article. Explain to us exactly how income taxes are Constitutional. If you cannot supply us with the law, than both sides should be covered and we shouldn't be refered to other articles. FFF 20:48, 22 March 2007
This is not true.
The often misquoted Brushaber case is what you stand on. however read it. It clearly tests the 16th and finds that it is void under all circumstances. 240 US 1 69.245.136.69 06:27, 13 August 2007 (UTC)
I have archived this talk page. GameKeeper 08:23, 24 January 2007 (UTC)
This article needs a good image to stimulate interest. I have quickly knocked up a graph Image:Income Taxes By County.svg based on http://www.oecd.org/document/60/0,2340,en_2649_34533_1942460_1_1_1_1,00.html table 1.2. Average % income taxes by County.
If this is considered suitable I will make it prettier, ie add titles and labels keys. FYI the 4 bars for each county represent % income paid in taxation based of 67%,100%,133% and 167% of average income. I had used a stacked bar graph but unfortunately the Netherlands % income for 100% average wage is less than that of 67% average wage which could not be represented in this way. GameKeeper 10:01, 24 January 2007 (UTC)
The title of the graph is misleading when it states "mean" tax rates. When reading the source for corporate tax rates it states "Where a progressive (as opposed to flat) rate structure applies, the top marginal rate is shown. —Preceding unsigned comment added by 209.98.116.10 ( talk) 22:17, 19 September 2010 (UTC)
This article needs a criticism section. Morphh (talk) 03:39, 25 January 2007 (UTC)
The reference links in the Critique section need to be updated. Three of the four links in this section are currently functional. Folklore1 ( talk) 20:21, 5 August 2010 (UTC)
I think this article was greatly improved during the Taxation Collaboration of the Month. I think if we take care of the tasks in the todo list, we should be good to submit this for Peer Review and then for GA. Morphh (talk) 20:53, 5 February 2007 (UTC)
A user named Paul Conners has been repeatedly inserting the following material at the top of the article:
Verifiability, Neutral Point of View, No Original Research. Wikipedia is not a proper forum for venting your personal views. Please observe Wikipedia policies & guidelines. Yours, Famspear 04:33, 16 February 2007 (UTC)
I am removing the Karl Marx quote. It has been added to 'principles'. My reasons for doing so are: i) There is no particular connection between the fact that progressive income tax was mentioned by Marx and the principle of income tax or progressive income tax; ii) the previous text mentions that it was supported by economists of different ideologies, and it appears POV to mention only one of them; iii) Marx was far from the only economist or first economist to suggest progressive income tax, and hence no compelling reason to quote him over any other (or at least more substantiation needed); iv) regardless of the above, quoting Marx is similar to some usages of an (implied) ad hominem argument ("Marx supported income tax, and he was a communist. Are you a communist?"). Did Hitler support progressive income tax? I have no idea, but quoting one of the most controversial figures of the last 200 years (Marx) seems an attempt to establish guilt by association. Or to put another way, Lenin was an advocate of electricity grids - quoting him over, say, Edison on electric transmission is stealth POV. (Apologies if I have misused in any way the strict philosophical definition of ad hominem)-- Gregalton 08:00, 21 March 2007 (UTC)
Update: another user deleted before I did, and I support his reasons (and conciseness in expressing them). Marx is not particularly relevant here, and it should be discussed on this talk page before being inserted again.-- Gregalton 08:03, 21 March 2007 (UTC)
[
[1]]
uk taxation needs updating re budget —The preceding unsigned comment was added by 212.159.16.219 ( talk) 16:01, 23 March 2007 (UTC).
The source I have found for top marginal rate in Canada [2] gives a top rate of 48.64%, not the 50% cited here. I will substitute unless there is a reference that supports what the text currently has ("many provinces have top marginal tax rates over 50%).-- Gregalton 08:37, 28 March 2007 (UTC)
An anonymous user changed the intro to read that an income tax is a "direct tax." My reversion of this edit was inadvertently denoted as a "minor" edit, and it is not a minor edit. As explained in various Wikipedia articles, some income taxes (particularly in the United States) have been considered direct taxes and others have been considered indirect taxes. Further, the terms "direct tax" and "indirect tax" have more than one technical meaning (even within a given country). The direct-indirect dichotomy is very complex. Further, we probably should keep the article international in scope. So, I would argue that we do not want to categorically say that an income tax is either a direct tax or an indirect tax. The technical distinctions are already explained in detail in various relevant articles. Yours, Famspear 15:10, 15 April 2007 (UTC)
This topic is KEY and Critical to the Understanding of US Taxation, and its validity. I have posted on the talk page of Tax Protestor Consitutional Objections. But for purposes of clarification here, I protest that we continually permit on Wikipedia the missapplication of the term "income" in all of these discussions.
When quoting citizens or protestors or even many incorrect implications reguarding the intent of the law (IRC) we tolerate, even imply, the common sense use of the term, which carries the inherent right of trading labor for currancy. ( Which by definition, would be taxed ONLY by a direct and in the case of the US- an apportioned tax. )
We do this at our peril of ignoring the legal and case-law definition of "income" which, since the IRC IS law and been ruled constitutional, and since the 'Income-Tax' is NOT apportioned, must therefore be understood by the Constitution to be an excise tax, and therefore predisposed to being optional under some priviledged activity that the citizen is engaging in.
This missapplication has its roots in the huge plethora of case law that correctly upholds the constitutionality of the IRC while offending our common sensibilities. The reason for this is in the underlying wordsmithing of the legal term "income" and its case law tested in court as far back as 1894. The frequently miss interpreted 16th ammendment does not, as many suppose, introduce the term 'income' for the first time, but instead relies on the historical legal meanings which the term accumulated as far back as 1860, and makes 'clear' for those who are reading the Constitution, that income as understood by the courts was gain acquired by such optional activities as federal priviledge bestowed upon govermental workers or other legally taxible activities engaged in by choice, and not by right. This is all detailed with court references in the Tax Protester Talk Pages.
I look forward to hearing what you have to say on this topic, Famspear. You are, by far the most densely referenced editor on the subject of taxation, though you do seem to engage in a gentle pressure to ensure the status quo rather than inform everyone on all opinions being presented to date. Its just more of the same redirection away from the true issues I have mentioned in my post on Tax-Protesting-Constituional Issues. Namely the continued miss-use of the term "Income Tax". Which clearly applies to everyone...all the time, in as much as they have [Income], as self defined by the IRC as "gains, profits and income DERVIED from salaries, wages, or compensation of services provided". [Income] is "gains derived from something you inherently already posses". And this distinction needs to begin to be clarified in any US context Income Tax presented on the wiki. InstallerMan 15:01, 17 April 2007 (UTC)
These four lists need attention to be synchronized:
Discuss here Talk:Tax_rates_around_the_world#Contradictions_in_the_list_with_other_articles Alinor 18:46, 1 June 2007 (UTC)
The middle five paragraphs of the section advocating a tax on the gross incomes of corporations seem inappropriate to the article for several reasons and I believe they should be deleted/modified. They read to me as POV and/or Original Research. Even if the many [citation needed] fields were filled with legitimate sources, giving this theory five paragraphs in a section that contains only seven paragraphs, gives it undue weight. Even the last paragraph, which appears to critique the previous five, does little to mitigate this.
These paragraphs appear to me to be a fringe theory and perhaps should be removed or at least merely summed up in a paragraph or two. I have no personal expertise on this topic, only an interest, and I am a great admirer of Famspear and Morphh, as well as other contributors, so I of course bow to your expertise.
Thank you for your attention.
SunsHand 21:38, 13 July 2007 (UTC)
Thank you both. It was my first Wiki-post and I will be less hesitant in the future.
SunsHand 22:50, 16 July 2007 (UTC)
Income tax is back in Uruguay, according to this page: http://www.ft.com/cms/s/d82c1f02-27fc-11dc-80da-000b5df10621.html Antipoeten 22:14, 7 August 2007 (UTC)
Dear user at IP82.95.194.23: Please stop adding tax protester material regarding "Tom Cryer" (for which there is a separate article) and repeatedly reverting other editors. The material you are inserting is false and, more importantly, is not neutral and not properly sourced.
Also, please explain your edits at the time you make them by providing a description in the edit summary box. You should also consider discussing your edits on this talk page or on the talk page for the Cryer article.
It appears that you have violated the 3 revert rule, which may be considered disruptive editing. Please review Wikipedia guidelines and strive to work for consensus with other editors. Yours, Famspear 17:51, 10 August 2007 (UTC)
Comment(s) by editor :
The Memorandum
(Pdf - 109 pages); filed in support of his Motion to Dismiss Evasion Charges Filed against him in:
United States versus Tommy K. Cryer D.J. - case 06-50164-01
Case closed at July 11th 2007 and is a precedent setting case for others to come
Attorney Tom K. Cryer District Judge (Court Louisiana for 34 years)
Indepth Info : The Memorandum
Short Info : Video Tom K.Cryer
—Preceding unsigned comment added by 194.109.22.148 ( talk • contribs) (on 12 August 2007)
Dear IP208.65.153.251: I hate to be the one to break the news to you, but the only precedent set in the Cryer case was precedent against Cryer's tax protester arguments. That is documented in the article Tom Cryer. A jury verdict is not a "ruling" and therefore is not a "precedent." In fact, had the court ruled in Cryer's favor on his "legal" arguments, there would have been no "not guilty" verdict by the jury -- indeed, there would have been no jury verdict at all. The judge would have simply thrown the case out. Cryer ended up winning an acquittal -- but that was based on a jury verdict after the court ruled against Cryer on his arguments that "wages are not taxable," etc. The article on Cryer includes citations to the actual documents where the court ruled against Cryer, with the entry numbers on the court docket, dates, and case number. Famspear 14:33, 26 August 2007 (UTC)
Mister Famspear maybe you better look for a real job ? {{subst:82.95.194.23|21:15, 27 August 2007 (UTC)}}
[3]. He has never responded to that post. Si tu n'es pas un avocat, evites un disputation avec un avocat au sujet de la loi. Famspear 21:37, 27 August 2007 (UTC)
Would someone mind telling me what law makes the average American liable for or subject to income tax for revenue purposes? If a supporting regulation exists, can you cite that too? Will you please provide reference links so I can read them for myself?
And will you please explain why the income tax page does not address the matter of substantive regulations, and laws that make normal folks liable for income taxes? That seems to me a critically important point to illuminate, particularly in the US income tax article.
-- BobHurt 17:18, 28 August 2007 (UTC)
The Internal Revenue Code though is not a Law —Preceding unsigned comment added by 194.109.22.148 ( talk) 10:59, 1 September 2007 (UTC)
Earth is a planet but not al planets are Earth
IRS code could be lawful but eventually being lawful does not mean being The Law or Constitution —Preceding unsigned comment added by 82.95.194.23 ( talk • contribs) (1 September 2007)
Editor Mateo SA and I have tried to humor these people, but I don't disagree with editor Arthur Rubin; we should keep this talk page on point. Famspear 16:43, 1 September 2007 (UTC)
if you find an old gold bar and decide to keep it, what is suppoed to happen? —Preceding unsigned comment added by 212.51.122.24 ( talk) 17:49, 6 January 2008 (UTC)
I attempted to make a change to the income tax article but it was undone. I might not have worded things exactly correct but the main emphasis I was trying to make was the disparity in taxation when it is done on a business versus on an individual.
To my knowledge there are no gross revenue taxes that apply to most businesses (I could be wrong here but think your run of the mill company). Yet individuals have to pay income tax on their gross revenue. This seems completely unfair as it does not allow for the deduction of expenses for existing like business have for existing. I think the income tax article should view the income tax in this frame.
One or more of you will probably say that that is a non-neutral POV on the income tax but the current view is not neutral either. It is an endorsement of the status quo that we have with the income tax. A POV that was framed many years ago and is so common place today that people see consider it as neutral rather than illegitimate.
I merely think that the income tax article should reflect this double standard and make it more pronounced so those who view this page will actually give some thought to the double standard rather than never think about the double standards of the status quo.
P.S. What is with the sourcing requirements? Maybe this is addresses somewhere else, I honestly haven't looked, but what is to stop me from publishing an ebook or a white paper on a web site and sourcing that versus just making a statement on a wikipedia page?
[Robert Francis IP 72.209.12.250] 15:58, 15 January 2008 (UTC)
A request for comment has been opened on the general topic of tax protester theories, and whether the articles that address them are NPOV. bd2412 T 18:06, 23 January 2008 (UTC)
Just a reminder that I have proposed to call for a conclusion to this discussion on tax protester rhetoric on February 6. If anyone has anything more to add to the discussion, speak now! bd2412 T 16:56, 3 February 2008 (UTC)
Bobhurt and his sock puppet BobHurt have been blocked. See [4] and [5]
While of course everyone should assume WP:GOODFAITH, Bob has stated his only reason for posting these things was as a complaint against the government.
You can complaint [sic] against government (if you do it the right way) at Wikipedia. I have written lots of complaints at the US income tax discussion pages, and much of the content is still there.
Since this material was not WP:GOODFAITH, it ought be deleted. —Preceding unsigned comment added by 65.39.221.157 ( talk) 20:21, 5 May 2008 (UTC)
I was going to add this external link to the Income Tax article but after reading the guidelines I was unsure whether it would be proper... I decided to leave this note here so people with more knowledge on the subject could decide about adding it or not. Video and slides from Floyd Norris (The New York Times), on the history of US Income Tax —Preceding unsigned comment added by Gustavoexel ( talk • contribs) 03:10, 12 August 2008 (UTC)
In the comparison chart of income tax and corporate tax, the average income tax for the US is shown to be around 28%. This under represents the amount of income/personal tax that is paid in the U.S. If you add in the SS taxes as well as state and local taxes then it would be a better comparison to the taxes of say, Sweden. One might also argue that the cost of health insurance be added to the overall tax figure since in many of the countries with higher taxes than the U.S (and lower for that matter), a person gets free health care (health care paid for by their taxes). I estimate that I pay just under 50% in fed/local/state/ss taxes in the U.S. If I added in my health care costs it would bring to something over 50%. Perhaps a more detailed view of what each country provides for their taxes (universities, health care, etc.) would make the comparisons more valid.
I look forward to seeing the continuing improvements. Halitun ( talk) 18:16, 5 September 2008 (UTC)
The cost an individual pays in private health insurance should not be included in the amount they pay in taxes. That would be better left for an article that discusses what different countries' use tax revenue for. Beyond health care there are going to be thousands of different government expenses that are made in some countries, but not others. The other problem is individuals who purchase their own health insurance will pay more or less money for different insurance plans with different levels of coverage. Cwkimbro ( talk) 09:51, 20 October 2008 (UTC)
I went ahead and removed all the country subsections - listed below if any content needs to be entered into the tax article for the country. Please see Tax rates around the world for links to the particular country tax articles. Morphh (talk) 1:28, 07 September 2008 (UTC)
Since 1942, income tax in Australia has been collected solely by the Federal Government, to the exclusion of the Australian States (see Constitutional basis of taxation in Australia). Australia uses a system of progressive taxation on personal income that is collected as a pay-as-you-go tax (known as PAYG), a flat rate tax on business income (company tax), and a property tax limited to realised capital gains. Australia’s income tax system contains a complex array of deductions and offsets, and is administered by the Australian Taxation Office.
Income tax in Argentina is collected solely by the Federal Government, to the exclusion of the Argentine Provinces. Argentina uses a system of progressive taxation on personal income that is collected as a deferred tax, a flat rate tax on business income (company tax, 35%), and a property tax limited to realised capital gains. Argentina’s income tax system contains a complex array of deductions and offsets, and is administered by the Administración Federal de Ingresos Públicos (AFIP).
The income tax was first imposed in Canada in 1914 on both individuals and corporations, collected primarily by the Federal Government originally meant to finance Canada's involvement in World War I set at a rate of 4%. Tax collection agreements enable both the federal and provincial governments to levy income taxes through a single administration and collection agency, called the Canada Revenue Agency. The federal government collects personal income taxes on behalf of all provinces except Quebec and collects corporate income taxes on behalf of all provinces except Alberta and Quebec. Canada has a graduated tax system, whereby the percentage over the "more than" amount goes up....graduated from 15 - 29% (2008). [2] These rates, together with provincial income tax rates, federal and provincial surtaxes, and provincial health premium taxes (both also calculated based on income), serve to create a combined top marginal tax rate that can approach 50% in some provinces.
The Danish income tax was introduced in 1903 and is now divided into state tax and local tax. The state tax is a progressive tax while the local tax is a flat tax.
The local tax varies from municipality to municipality. The highest local tax in 2007 is 26,71 % and the lowest is 20,14 %. Income below DKK 41,000 ($8,000) (2007-level, adjusted annually) is tax exempt. [3]
There are three income brackets for the state tax. In 2007 income from DKK 39,500 to DKK 272,600 is taxed at 5,48%, income from DKK 272,600 to DKK 327,200 is taxed at additionally 6% and income above DKK 327,200 is taxed at 15% on top.
All income originating from terms of employment or self-employment are levied a social contribution at 8% before income tax. This contribution is widely regarded as "gross tax". The highest total income tax is therefore 62,28%.
A number of deductions apply. The general rule is that the taxpayer is able to deduct his expenses in acquiring his taxable income. There are many exceptions to this rule though. Employees have very limited possibilities for tax deduction as it is assumed that the employer covers the expenses related to the employee's work. The employer will then be able to deduct most of these expenses from his own taxable income.
Danish tax examples - as of 2008:
If you have what is considered a very low income (150,000 DKK equal to 31,250 USD) - you pay approx. 31,500 DKK income tax.
(Approx. 21% of the full amount.)
If you have what is considered an average income (375.000 DKK equal to 78,125 USD) - you pay approx 131,000 DKK income tax...
(Approx. 34.7% of the full amount.)
The French income tax is a progressive tax, i.e. tax is an increasing piecewise linear continuous function of income (excluding various rebates etc.). This means that the amount of income earned up to a certain amount t1 is taxed at a rate r1, then the remaining money, up to a certain amount t2 is taxed at a rate r2, etc. The income tax (impôt sur le revenu): 16% of tax revenue. The tax on corporations: 12% of tax revenue.
The French Government has launched the Copernic tax project which unifies the tax paying process.
The German income tax is a progressive tax: income below the "existence minimum" (about 8000 EUR/year) is tax-free, higher income is taxed with a marginal tax rate running from 15 % up to 45 % (as of 2008). Additionally, earned income is subject to about 40 % of social insurance fees, half of it to be paid by the employer and the other half by the employee.
In Guatemala, the Superintendencia de Administracion Tributaria (SAT) levies tax on personal and corporate income.
There are three income types earned in Hong Kong that are taxed, but they are not locally referred to as income taxes. Per Inland Revenue Ordinance Chapter 112 (IRO), these three types are classified into: Profit tax IRO section 14, Salaries tax IRO section 8, and Property tax IRO section 5. [4]
India has a three-tier tax structure, comprising the Union Government, the State Governments and the Urban/Rural Local Bodies [5]. The power to levy taxes and duties is distributed among the three tiers of Governments, in accordance with the provisions of the Indian Constitution. The main taxes/duties that the Union Government is empowered to levy are Income Tax (except tax on agricultural income, which the State Governments can levy), Customs duties, Central Excise and Sales Tax and Service Tax. The principal taxes levied by the State Governments are Sales Tax (tax on intra-State sale of goods), Stamp Duty (duty on transfer of property), State Excise (duty on manufacture of alcohol), Land Revenue (levy on land used for agricultural/non-agricultural purposes), Duty on Entertainment and Tax on Professions & Callings. The Local Bodies are empowered to levy tax on properties (buildings, etc.), Octroi (tax on entry of goods for use/consumption within areas of the Local Bodies), Tax on Markets and Tax/User Charges for utilities like water supply, drainage, etc.
The income tax in Indonesia is known as Pajak Penghasilan (PPh) and is considered to be a progressive tax. The rule governing this taxation is also called pph21.
The Islamic Republic of Iran has income taxes. The highest tax bracket on profits is 46.4%.
Refer to IRPEF (in Italian) for the Italian personal taxation system.
The Italian personal income tax is a progressive tax, i.e. tax is an increasing piecewise affine continuous function of income (excluding various rebates etc.). This means that the amount of income earned up to a certain amount t1 is taxed at a rate r1, then the remaining money, up to a certain amount t2 is taxed at a rate r2, etc.
Progressive taxation at the national level that ranges from 5% to 40%. Resident taxes are an additional 10%. [6]
Malta has a progressive individual income tax, ranging from 0% to 35%. For single computations, income up to €8,150 is tax free, income between €8,151 and €14,000 is taxed 15%, income between €14,001 and €19,000 is taxed 20% and income above €19,000 is taxed 35%. For joint computations, income up to €11,400 is tax free, income between €11,401 and €20,500 is taxed 15%, income between €20,501 and €28,000 is taxed 20% and income above €28,000 is taxed 35%.
Mexico has an income tax called ISR (Impuesto Sobre la Renta) which is progressive and, from 2008 on, a second tax called IETU (Impuesto Empresarial de Tasa Única, meaning flat business tax) which is, as its name shows, a flat tax.
The Netherlands taxes income on personal income (wages, profits, social security); some business income; and savings and investments. The tax on personal income is progressive and casts a wide tax net over wages, profits, social security, and pensions. The tax is withheld from wages and can reach a marginal rate of 52%. As an example of the breadth of the tax net, value gains in owner-occupied homes are treated as personal income, even though those gains are not realized (i.e. do not equate to cash in hand). Interest can be deducted as a cost incurred in earning the income. The tax on business income is a flat tax of 25% and only applied to "substantial business interests", which are generally a shareholding of 5%. A flat tax is paid on savings and investments, even if the gain is not realized.
The income tax in Peru is collected by the Superintendencia Nacional de Administración Tributaria (SUNAT). This country uses a system of progressive taxation on personal income, and a flat rate tax on business income.
Poland has a progressive personal income tax. [7]. The first 3,013 złotys earned in the year are free of tax, then income lower than 43,405 złotys is taxed at 19%. Yearly earnings between 43,405 to 85,528 złotys incur 30% tax. Top personal income tax rate is paid on earnings above 85,528 Polish złotys (apprx. 26,000 euro) per year and is equal to 40%.
Taxation of corporate and personal income is distinctly different.
Russia imposes a flat tax of 13% on personal income of tax residents of Russia, including capital gains. Dividends received are taxed at source at 9%. Lottery winnings and bank interest in excess of going Central Bank rate are taxed at 35%. Capital gains on sales of real estate and securities owned for a period of at least 3 years are free from taxation. The law provides for a number of itemized deductions, notably home purchase deduction, available once in lifetime, and college cost deduction. Maximum cap on these deductions is set quite low: tax savings on a home purchase are limited to 130,000 roubles (US $5,600) for both spouses.
Current expenses (even related to business revenue), depreciation, losses on investments are not deductible, unless the individual taxpayer register himself as a private entrepreneur and maintains separate bookkeeping on his private and business operations.
Resident corporate taxpayers are generally taxed at 24% on their pre-tax profits. A small business (including registered individual entrepreneurs) may elect to be taxed under simplified system and, instead of regular profit and value added tax, pay a flat 6% on gross receipts or 18% on gross margin.
Non-residents (individual and corporate) are taxed at a flat rate of 30%, except dividends received - 15%. Bilateral tax treaties may reduce this rate to zero.
Singapore has a progressive individual income tax, [8] with taxes ranging from 0% to 20% up to Year of Assessment 2007. The tax net includes employment income, dividends, interests, and rental incomes. [8] A range of deductions are available. Singapore also has an income tax on corporations. [9]
Refer to IRPF (in Spanish) for the Spanish personal taxation system.
Sweden has a taxation system that combines a direct tax (paid by the employee) with an indirect tax (paid by the employer). In practice, the employer provides the state with both means of taxation, but the employee only sees the direct tax on his declaration form. The compilation of taxes that compose the final income tax (2003): tax on gross income from the employer: 32.82% (indirect, fixed), pension fee on gross income: 6.95% (indirect, fixed), municipal tax on gross income less pension tax and a base deduction: ~32% (direct, varies by municipality), state tax on gross income less pension tax and a base deduction: 0%, 20%, or 25% (direct, progressive).
The British income tax system is progressive with a number of bands: 10% (only applies to savings income and from April 2008 does not apply to earnings), 20% basic rate on UK dividends, investment income and income from employment/self employment (was 22% until April 2008), and (in respect of the higher rate band and all income on certain trusts) 32.5% on UK dividends and 40% on other sources [10] There are also a number of untaxed allowances (such as the personal allowance) to which tax bands do not apply. The tax is an annual tax and is reimposed each year in the annual Finance Act. In addition, the UK has a National Insurance contribution based on income. Although effectively another form of income tax, credits for payments of this applied to the individual's record which, in turn, will impact on entitlement to welfare and (the level of) state pension payments. Rates are levied on the self employed, the employed, and their respective employers. The United Kingdom also imposes a corporation tax, charged on the profits and chargeable gains of companies. The main rate is 30%, which is levied on taxable income above GBP 1.5 million, but it will be reduced to 28% in April 2008. Income of £300,000 or less is taxed at 20%. Marginal reliefs exist between the £300,000 and £1,500,000 bands. [11]
Under the Scotland Act 1998 , the Scottish Parliament has the power to increase or reduce the basic rate of income tax by three pence in the pound, though not yet exercised.
The United States imposes an income tax on individuals, corporations, trusts, and certain estates. This tax is imposed on the income event, such as the receipt of wages. Another example of an income event is the realization of a gain on the disposition of property; that is, the appreciation on the value of property is not taxed until that property is sold (i.e., when the gain is "realized").
The U.S. income tax was first proposed during the War of 1812, but was defeated. [12] In July 1861, the Congress passed a 3% tax on all net income above $600 a year (about USD 10,000 today). Income taxes were enacted at various times until 1894, but were not imposed after 1895 when an 1894 tax act was found to be unconstitutional. In response, the 16th Amendment was ratified in 1913. [12] Ratification has been unsuccessfully disputed by some tax protesters. Tax protesters have also made other arguments about the validity of the U.S. income tax, without success (see Tax protester arguments).
The top marginal tax rate in the U.S. was 67 to 73 percent from 1917 to 1921, then began to fall, reaching a low of 25 percent from 1925 to 1931. The rate was increased to 63 percent in 1932, to 79 percent in 1936, and to 88 percent in 1942. From 1951 to 1963, the top marginal tax rate was 91 percent, and was 70 percent through most of the 1970s. In 1988 it was lowered to 28 percent, but raised in 1993 to 39.6 percent. The rate was lowered to 38.6 percent in 2001 and again lowered to 35 percent in 2003.
The 2007 individual federal income tax rates are between 10% and 35%, depending on income and family status. People with relatively low incomes may pay no income tax, or may receive earned income tax credits (tax benefits); however, this does not include income-based payroll taxes that fund Social Security and Medicare. As of 2004, three-fourths of taxpayers paid more in payroll taxes than they do in income taxes. [13] IRS data indicate that the wealthiest 5% of taxpayers (ranked by Adjusted Gross Income (AGI), counting only returns with positive AGI) paid roughly 60% of all income taxes; the bottom 50% of taxpayers account for just 3% of income taxes paid. [14]
Income tax may also be levied by individual U.S. states in addition to the federal income tax. Some states also allow individual cities to impose an additional income tax. Most state and local taxes are deductible expenses for federal tax purposes. Not all states levy an income tax (see State income tax)
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The world maps with red and green colours don't look very NPOV but seems to suggest that low income taxes are good and high income taxes bad. IMHO another colour scheme would be preferable to the present one. —Preceding unsigned comment added by 217.229.20.166 ( talk) 14:19, 28 October 2008 (UTC)
I don't know that I'd go so far to say that that is manipulative. It's even hard to justify that as POV since it's a POV that one color is bad in the first place. But I've removed them anyway since they are unsourced and there are problems with the data used to construct them. A question on the talk page of one regarding the data went unanswered and it's a very valid question. They are however exactly what the article should have, but they should be replaced by something scrupulously sourced. - Taxman Talk 13:34, 15 November 2008 (UTC)
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While bouncing around articles on taxes, I came across a discrepancy. This article, under the section History, says:
The first United States income tax was imposed in July 1861, 3% of all incomes over 600 dollars (later rescinded in 1872).
However, in the article Income Tax in the United States, section Early Federal Taxes, this is given:
In order to help pay for its war effort in the American Civil War, the United States government imposed its first personal income tax, on August 5, 1861, as part of the Revenue Act of 1861 (3% of all incomes over US $800; rescinded in 1872).
The first shows a figure of $600, the second a figure of $800.
I note that this article gives a source, Young, Adam (2004-09-07). "The Origin of the Income Tax". Ludwig von Mises Institute. http://mises.org/story/1597. Retrieved on 2007-01-24, while Income Tax in the United States does not, so my first inclination was to change the figure in that article to match this one. Erring on the side of caution, however, I decided to toss it up here for someone who might have the time to discover a second source to corroborate the first, and/or discover where the $800 figure came from.
Dismalscholar ( talk) 18:09, 5 February 2009 (UTC)
I made a few more minor corrections. The income tax imposed in 1861 was expressly repealed by section 89 of the 1862 Act. Sections 86 and 90 of the 1862 Act imposed income taxes, though. Famspear ( talk) 23:14, 5 February 2009 (UTC)
The very existence of a 'critique' section without any section than explains the justifications given for imposing income tax seems in itself to be POV by exclusion. Perhaps we should add a section that briefly describes the various arguments given for the imposition and maintenance of income tax? —Preceding unsigned comment added by 116.227.85.134 ( talk) 14:19, 27 May 2009 (UTC)
Currently "Payroll" section includes: "These withholdings contribute to repayment of an employee's personal income tax obligation". Why "repayment"? If anything, shouldn't it be "prepayment"? Peter Delmonte ( talk) 06:07, 7 February 2010 (UTC)
Thanks. Edited for clarity. Famspear ( talk) 13:43, 7 February 2010 (UTC)
I saw Al Gore on a youtube video saying that Bismarck introduced the "tax on jobs" and we should replace it with green taxes instead - is that referring to income tax? So was Bismarck the one who introduced the first modern progressive income tax system? Wik idea 08:56, 24 April 2010 (UTC)
I inserted these three graphs to illustrate the discussion on progressive income tax because they show the wide range of rates in the U.S., the wide history of the U.S's top rate, and the progressive effects of the top rate. There are no other graphs in this article at present, just a map. The graphs were removed with an edit summary "All relate to _income tax in the US_; we would need additional sources for relevance." Per WP:OI I do not believe we need any further sources for the obvious fact that these graphs illustrate the subject being discussed. The fact that they relate to the US is true and orthoginal to the fact that they illustrate the subject being discussed in the text adjacent to them. So I am replacing them. — Cupco 08:03, 25 September 2012 (UTC)
The last two of these graphs were removed again because "This is not a U.S. article and provides little relevance to 'Principles of taxes' ... two editors have disagreed with this content. They are shown as an example in the English Wikipedia because the U.S. is the largest primarily English-speaking country, and there are no international income taxes. Why are the graphs not relevant? Are there other graphs which would be more relevant? — Cupco 20:41, 3 October 2012 (UTC)
The section violates WP:SEEALSO, as most are also in {{ See also}} links at the top of sections of the body. Also, many of those connect to [[Taxation in country]], when they should link to [[Income tax in country]] or [[Taxation in country#Income tax]]. — Arthur Rubin (talk) 16:24, 18 November 2012 (UTC)
I have substantially expanded the article, other than the history parts. Prior to this expansion, the article was a start class article, meeting almost none of the criteria for C class let alone its B rating. The expanded version is, I believe, at least up to C class, and I have so rated it.
Edits are welcome. This article gets lots of hits, and probably was leaving readers far more frustrated than informed. Let’s try to get it to B class. Frankly, that will take a lot of additional work, and my time is limited. Oldtaxguy ( talk) 01:12, 29 August 2013 (UTC)
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It looks that there are typos or stuff to fix. Socialistguy ( talk) 17:35, 29 November 2016 (UTC)
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Wikipedia doesn't seem to have an article about "return-free filing". If it doesn't, why not? In 1985, Ronald Reagan said "We call it the return-free system". ReadyReturn is about a version in 2005 and says "More than 20 other countries implement pre-populated returns for some of their taxpayers." And there is a section in TurboTax article: TurboTax#Opposition_to_return-free_filing. -- EarthFurst ( talk) 09:28, 6 July 2020 (UTC)
About income tax 49.37.136.7 ( talk) 03:39, 10 September 2022 (UTC)