query: congress was granted the power to tax personal income in

pos: Sixteenth Amendment to the United States Constitution Sixteenth Amendment to the United States Constitution The Sixteenth Amendment (Amendment XVI) to the United States Constitution allows Congress to levy an income tax without apportioning it among the states on the basis of population. It was passed by Congress in 1909 in response to the 1895 Supreme Court case of "Pollock v. Farmers' Loan & Trust Co." The Sixteenth Amendment was ratified by the requisite number of states on February 3, 1913, and effectively overruled the Supreme Court's ruling in "Pollock". Prior to the early 20th century, most federal revenue came from tariffs rather than taxes, although Congress had

neg: Income tax in the United States as direct taxes on property, and therefore had to be apportioned (divided among the states based on their populations). Since apportionment of income taxes is impractical, this had the effect of prohibiting a federal tax on income from property. However, the Court affirmed that the Constitution did not deny Congress the power to impose a tax on real and personal property, and it affirmed that such would be a direct tax. Due to the political difficulties of taxing individual wages without taxing income from property, a federal income tax was impractical from the time of the "Pollock" decision until the

neg: Murphy v. IRS that "the power of the Congress to tax income 'extends broadly to all economic gains.'" The court ruled that Ms. Murphy was not entitled to the tax refund she claimed, and that the personal injury award she received was "within the reach of the congressional power to tax under Article I, Section 8 of the Constitution"—even if the award was "not income within the meaning of the Sixteenth Amendment". Murphy's attorneys, led by David K. Colapinto of Kohn, Kohn & Colapinto, requested a rehearing of the July 2007 decision by the full Court of Appeals ("en banc") for the District

neg: Tax protester constitutional arguments two federal courts have indicated that Congress may constitutionally tax an item as "income," regardless of whether that item is "income" within the meaning of the Sixteenth Amendment. In "Penn Mutual Indemnity Co. v. Commissioner", the United States Court of Appeals for the Third Circuit stated: In "Murphy v. Internal Revenue Serv.", the United States Court of Appeals for the District of Columbia Circuit ruled that a personal injury award received by a taxpayer was "within the reach of the congressional power to tax under Article I, Section 8 of the Constitution" — even if the award was "not income

neg: Tax protester Sixteenth Amendment arguments the power granted to Congress by the original text of Article I of the U.S. Constitution. The reference to "being taken out of the category of indirect taxation to which it [the income tax] belonged" is a reference to the effect of the 1895 Court decision in "Pollock v. Farmers' Loan & Trust Co.", where taxes on income from property (such as interest income and dividend income) – which, like taxes on income from labor, had always been considered indirect taxes (and therefore not subject to the apportionment rule) – were, beginning in 1895, treated as direct taxes. The Sixteenth

neg: Pollock v. Farmers' Loan & Trust Co. Amendment was to prevent the tax on income from property, which "Pollock" had ruled was direct, from having to be apportioned. It did so by declaring that Congress could tax income from any source without apportionment. In his dissent to the "Pollock" decision, Justice Harlan stated: When, therefore, this court adjudges, as it does now adjudge, that Congress cannot impose a duty or tax upon personal property, or upon income arising either from rents of real estate or from personal property, including invested personal property, bonds, stocks, and investments of all kinds, except by apportioning the sum to be so

neg: Eisner v. Macomber stock dividends were not income, as nothing of value was received by Towne; the company was not worth any less than it was when the dividend was declared, and the total value of Towne's stock had not changed. Although the Court acknowledged the power of the Federal Government to tax income under the Sixteenth Amendment, it essentially said that Congress was not given the power to tax as income anything other than income. In others words, Congress did not have the power to redefine "income" as it appeared in the Constitution: The Court ordered that Macomber be refunded the tax

neg: Income tax in the United States income above £200. The tax proposal was developed in 1814. Because the treaty of Ghent was signed in 1815, ending hostilities and the need for additional revenue, the tax was never imposed in the United States. In order to help pay for its war effort in the American Civil War, Congress imposed its first personal income tax in 1861. It was part of the Revenue Act of 1861 (3% of all incomes over US $800). This tax was repealed and replaced by another income tax in 1862. In 1894, Democrats in Congress passed the Wilson-Gorman tariff, which imposed the first

neg: Comptroller of the Treasury of Maryland v. Wynne local school districts would have to raise tax rates to cover the lost revenue in future tax years. Comptroller of the Treasury of Maryland v. Wynne Comptroller of the Treasury of Maryland v. Wynne, 575 U.S. ___ (2015), is a 2015 U.S. Supreme Court decision which applied the dormant Commerce Clause doctrine to Maryland's personal income tax scheme and found that the failure to provide a full credit for income taxes paid to other states was unconstitutional. The Commerce Clause provides that: Although the text of the clause appears to be a simple grant of power to Congress, the Supreme

neg: Sixteenth Amendment to the United States Constitution personal injury award she received was "within the reach of the Congressional power to tax under Article I, Section 8 of the Constitution" – even if the award was "not income within the meaning of the Sixteenth Amendment". See also the "Penn Mutual" case cited above. On April 21, 2008, the U.S. Supreme Court declined to review the decision by the Court of Appeals. Sixteenth Amendment to the United States Constitution The Sixteenth Amendment (Amendment XVI) to the United States Constitution allows Congress to levy an income tax without apportioning it among the states on the basis of population. It

neg: Income tax in Scotland Income tax in Scotland Income tax in Scotland is a tax of personal income gained through employment. This is a tax controlled by the Scottish Parliament, and collected by the UK government agency HM Revenue & Customs. As proposed in the Scottish 2018-19 budget, the Scottish income tax system will become significantly different from the rest of the United Kingdom. When the devolved Scottish Parliament was set up in 1999, the Scottish Parliament had the power to vary the rate of income tax by 3% (in either direction) from the rates applied in the rest of the UK. This power

neg: Tax bracket Rates: Married Rates: New Zealand has the following income tax brackets (as of 1 October 2010). All values in New Zealand dollars, with the ACC Earners' levy not included. ACC Earners' Levy for the 2010 tax year is 2.0%, an increase from 1.7% in the 2008 tax year. There will be a personal tax rebate of 20% granted for 2008, up to a maximum of $2,000. All figures are in Singapore dollars. The Minister of Finance announced new tax rates for the 2012–2013 tax year. They are as follows : Personal income tax is progressive in nature. The total rate

neg: Tax credits in the Republic of Ireland Tax credits in the Republic of Ireland In Ireland, tax credits reduce the amount of Irish income tax that a taxpayer pays in a given year. A few tax credits are granted automatically, while others can be claimed, either by simple notification to Revenue, or by completing a form. All tax credits are expressed as an annual amount. All are non-refundable. These figures are applicable from 1 January 2018 to 31 December 2018. The personal tax credit is granted to all taxpayers. The amount of the tax credit varies depending on personal circumstances; where a person qualifies for several of

neg: History of taxation in the United States estate, on interest income from personal property and other income from personal property (which includes dividend income) were direct taxes on property and therefore had to be apportioned. Since apportionment of income taxes is impractical, the "Pollock" rulings had the effect of prohibiting a federal tax on income from property. Due to the political difficulties of taxing individual wages without taxing income from property, a federal income tax was impractical from the time of the "Pollock" decision until the time of ratification of the Sixteenth Amendment (below). In response to the Supreme Court decision in the "Pollock" case, Congress proposed

neg: Flat tax 23%. These are countries, as well as minor jurisdictions with the autonomous power to tax, that have adopted tax systems that are commonly described in the media and the professional economics literature as a flat tax. In some countries different rates apply to different kinds of income, the main rate for personal income is shown below. At the federal level, the United States taxes personal income at progressive rates. Most states also tax income, most of them also at progressive rates, but some use a flat tax rate. These are countries where concrete flat tax proposals are being considered by

neg: History of taxation in the United States and unclear when applied to an income tax, which can be arguably viewed either as a direct or an indirect tax. The courts have generally held that direct taxes are limited to taxes on people (variously called "capitation", "poll tax" or "head tax") and property. All other taxes are commonly referred to as "indirect taxes". In order to help pay for its war effort in the American Civil War, Congress imposed its first personal income tax in 1861. It was part of the Revenue Act of 1861 (3% of all incomes over US $800; rescinded in 1872). Congress also enacted

neg: Internal Revenue Service successor William Howard Taft, the United States saw a populist movement for tax reform. This movement culminated during then candidate Woodrow Wilson's election of 1912 and in February 1913, the ratification of the Sixteenth Amendment to the United States Constitution: This granted Congress the specific power to impose an income tax without regard to apportionment among the states by population. By February 1913, 36 states had ratified the change to the Constitution. It was further ratified by six more states by March. Of the 48 states at the time, 42 ratified it. Connecticut, Rhode Island, and Utah rejected the amendment;

neg: Fiscal policy of the Philippines Customs (BOC). Tax effort as a percentage of GDP has averaged at roughly 13% for the years 2001-2010. Income tax is a tax on a person's income, wages, profits arising from property, practice of profession, conduct of trade or business or any stipulated in the National Internal Revenue Code of 1997 (NIRC), less any deductions granted. Income tax in the Philippines is a progressive tax, as people with higher incomes pay more than people with lower incomes. Personal income tax rates vary as such: The top rate was 35% until 1997, 34% in 1998, 33% in 1999, and 32% since

neg: History of taxation in the United States direct cause of increased income inequality that began in the 1980s. These figures also correspond to an analysis of effective tax rates from 1979–2005 by the Congressional Budget Office. Congress re-adopted the income tax in 1913, levying a 1% tax on net personal incomes above $3,000, with a 6% surtax on incomes above $500,000. By 1918, the top rate of the income tax was increased to 77% (on income over $1,000,000) to finance World War I. The top marginal tax rate was reduced to 58% in 1922, to 25% in 1925, and finally to 24% in 1929. In 1932 the

neg: Income tax in the United States time of ratification of the Sixteenth Amendment (below). In response, Congress proposed the Sixteenth Amendment (ratified by the requisite number of states in 1913), which states: The Congress shall have power to lay and collect taxes on incomes, from whatever source derived, without apportionment among the several States, and without regard to any census or enumeration. The Supreme Court in "Brushaber v. Union Pacific Railroad," , indicated that the amendment did not expand the federal government's existing power to tax income (meaning profit or gain from any source) but rather removed the possibility of classifying an income tax as a

neg: Tax protester Sixteenth Amendment arguments taxation, but simply prohibited the previous complete and plenary power of income taxation possessed by Congress from the beginning from being taken out of the category of indirect taxation to which it inherently belonged". The United States Court of Appeals for the Fifth Circuit rejected Parker's argument, and stated that Parker's proposition is "only partially correct, and in its critical aspect, is incorrect". The Court of Appeals re-affirmed that the Congress has the power to impose the income tax, and stated that the Sixteenth Amendment "merely eliminates the requirement that the direct income tax be apportioned among the states". The

neg: History of taxation in the United States the need for the income tax on interest, dividends and rents to be apportioned among the states on the basis of population. Income taxes are required, however, to abide by the law of geographical uniformity. Congress enacted an income tax in October 1913 as part of the Revenue Act of 1913, levying a 1% tax on net personal incomes above $3,000, with a 6% surtax on incomes above $500,000. By 1918, the top rate of the income tax was increased to 77% (on income over $1,000,000, equivalent of $16,717,815 in 2018 dollars) to finance World War I. The average rate

neg: Taxation in the United States personal exemptions, a fixed dollar allowance. The allowance of some nonbusiness deductions is phased out at higher income levels. The U.S. federal and most state income tax systems tax the worldwide income of citizens and residents. A federal foreign tax credit is granted for foreign income taxes. Individuals residing abroad may also claim the foreign earned income exclusion. Individuals may be a citizen or resident of the United States but not a resident of a state. Many states grant a similar credit for taxes paid to other states. These credits are generally limited to the amount of tax on income

neg: Sixteenth Amendment to the United States Constitution only to be imposed with geographical uniformity). Dissenting in "Pollock", Justice John Marshall Harlan stated: Members of Congress responded to "Pollock" by expressing widespread concern that many of the wealthiest Americans had consolidated too much economic power. Nonetheless, in the years after "Pollock", Congress did not implement another federal income tax, partly because many Congressmen feared that any tax would be struck down by the Supreme Court. Few considered attempting to impose an apportioned income tax, since such a tax was widely regarded as unworkable. On June 16, 1909, President William Howard Taft, in an address to the Sixty-first Congress,

neg: Income tax in the United States a tax on property and it certainly is not a capitation tax; therefore, it need not be apportioned. ... Congress has the power to impose taxes generally, and if the particular imposition does not run afoul of any constitutional restrictions then the tax is lawful, call it what you will. Federal and state income tax rates have varied widely since 1913. For example, in 1954, the federal income tax was based on layers of 24 income brackets at tax rates ranging from 20% to 91% (for a chart, see Internal Revenue Code of 1954). Below is a table of historical

neg: Claudia Tenney tax rate from 39.6% to 35%, the elimination of the individual mandate created by the Affordable Care Act, the limitation of the state and local tax deduction to $10,000 of taxable income, an increase in the standard deduction, and a reduction in the corporate tax rate from 35% to 21%. The reduction of the corporate tax rate is permanent. The personal income tax cuts are temporary. In October 2017, Tenney joined other Members of Congress and Ivanka Trump at an event to advocate for the doubling of the child tax credit; this provision was included in the Tax Cuts and

neg: Income tax in the United States transaction of any business carried on for gain or profit, or gains or profits and income derived from any source whatever. The Court held that "this language was used by Congress to exert in this field the full measure of its taxing power", id., and that "the Court has given a liberal construction to this broad phraseology in recognition of the intention of Congress to tax all gains except those specifically exempted." The Court then enunciated what is now understood by Congress and the Courts to be the definition of taxable income, "instances of undeniable accessions to wealth, clearly realized,

neg: Comptroller of the Treasury of Maryland v. Wynne Comptroller of the Treasury of Maryland v. Wynne Comptroller of the Treasury of Maryland v. Wynne, 575 U.S. ___ (2015), is a 2015 U.S. Supreme Court decision which applied the dormant Commerce Clause doctrine to Maryland's personal income tax scheme and found that the failure to provide a full credit for income taxes paid to other states was unconstitutional. The Commerce Clause provides that: Although the text of the clause appears to be a simple grant of power to Congress, the Supreme Court has long held that the clause was intended to include a negative command prohibiting state taxation that

neg: Income tax in the United States punitive damages from a competitor for antitrust violations and sought to avoid paying taxes on that award. The Court observed that Congress, in imposing the income tax, had defined gross income, under the Internal Revenue Code of 1939, to include: gains, profits, and income derived from salaries, wages or compensation for personal service ... of whatever kind and in whatever form paid, or from professions, vocations, trades, businesses, commerce, or sales, or dealings in property, whether real or personal, growing out of the ownership or use of or interest in such property; also from interest, rent, dividends, securities, or the

neg: Tax protester Sixteenth Amendment arguments Tax protester Sixteenth Amendment arguments Tax protester Sixteenth Amendment arguments are assertions that the imposition of the U.S. federal income tax is illegal because the Sixteenth Amendment to the United States Constitution, which reads "The Congress shall have power to lay and collect taxes on incomes, from whatever source derived, without apportionment among the several States, and without regard to any census or enumeration", was never properly ratified, or that the amendment provides no power to tax income. Proper ratification of the Sixteenth Amendment is disputed by tax protesters who argue that the quoted text of the Amendment differed from

neg: Tax credits in the Republic of Ireland couple. It is also not awarded where the child is earning money. Tax credits in the Republic of Ireland In Ireland, tax credits reduce the amount of Irish income tax that a taxpayer pays in a given year. A few tax credits are granted automatically, while others can be claimed, either by simple notification to Revenue, or by completing a form. All tax credits are expressed as an annual amount. All are non-refundable. These figures are applicable from 1 January 2018 to 31 December 2018. The personal tax credit is granted to all taxpayers. The amount of the tax credit

neg: History of taxation in the United States the Sixteenth Amendment, which was ratified in 1913, and which states: The Congress shall have power to lay and collect taxes on incomes, from whatever source derived, without apportionment among the several States, and without regard to any census or enumeration. The Supreme Court in "Brushaber v. Union Pacific Railroad," , indicated that the Sixteenth Amendment did not expand the federal government's existing power to tax income (meaning profit or gain from any source) but rather removed the possibility of classifying an income tax as a direct tax on the basis of the source of the income. The Amendment removed

neg: Scottish variable rate Parliament at Westminster. One such reserved matter was taxation; however, this had been a key point in Scottish negotiations relating to parliamentary control. As a means of compromise, Westminster afforded the Scottish Parliament the ability to vary income tax, which was subsequently given the consent of the Scottish electorate in the second question of the 1997 devolution referendum. Therefore, the Scotland Act 1998 granted the Scottish Parliament the power to vary income tax by ±3p in every pound. This power was often referred to as the tartan tax, a phrase first used by Conservative financier and politician Michael Forsyth as

neg: Dale W. Jorgenson practice in economics. He was also an advocate for a carbon tax on greenhouse gas emissions as a means of reducing global warming when he testified before congress in 1997. His research has also been used to advocate for the FairTax, a tax reform proposal in the United States to replace all federal payroll and income taxes (both corporate and personal) with a national retail sales tax and monthly tax rebate to households of citizens and legal resident aliens. However, Jorgenson supports a tax plan of his own design, which he calls Efficient Taxation of Income, described in his book

neg: The Law that Never Was The Law that Never Was The Law That Never Was: The Fraud of the 16th Amendment and Personal Income Tax is a 1985 book by William J. Benson and Martin J. "Red" Beckman which claims that the Sixteenth Amendment to the United States Constitution, commonly known as the income tax amendment, was never properly ratified. In 2007, and again in 2009, Benson's contentions were ruled to be fraudulent. Under Article V of the U.S. Constitution, an amendment proposed by Congress must be ratified by three-fourths of the states to become part of the Constitution. The Article permits Congress to specify,

neg: Pollock v. Farmers' Loan & Trust Co. consideration of the direct effects of any income tax laid by Congress. The Supreme Court, in "Stanton v. Baltic Mining Co.", added that the "Sixteenth Amendment conferred no new power of taxation but simply prohibited the previous complete and plenary power of income taxation possessed by Congress from the beginning from being taken out of the category of indirect taxation to which it inherently belonged." 240 U.S. 112 (1916). This effect was reaffirmed in "Bowers v. Kerbaugh-Empire Co.", , in which the Supreme Court reviewed "Pollock", the Corporation Excise Tax Act of 1909, and the Sixteenth Amendment. It concluded, "It

neg: Revenue Act of 1861 an increase in certain import tariffs, a newly instituted property tax, and the first personal income tax. Under the leadership of Senator William Pitt Fessenden of Maine, chair of the Senate Finance Committee, Congress drafted the Revenue Act of 1861 in a relatively short time-frame. While the legislation effectively introduced import tariffs, property taxes, and a flat rate income tax of 3% on those making above $800, it lacked a comprehensive enforcement mechanism. In Congress, the bill provoked considerable debate: Thaddeus Stevens, chairman of the House Committee of Ways and Means, declared that, "This bill is a most unpleasant one.

neg: Springer v. United States that a tax on income from property in the form of interest, dividends or rent should be treated as a tax on the property itself, and therefore as a direct tax required to be apportioned. The Sixteenth Amendment to the United States Constitution later overruled the "Pollock" decision and made clear that there was no requirement for apportionment of income taxes. Later still, in "Bowers v. Kerbaugh-Empire Co.", the Supreme Court reviewed "Pollock", the Corporation Excise Tax Act of 1909 and the Sixteenth Amendment, and concluded that Congress had always had the unfettered power to tax income, as set forth

neg: Tax protester Sixteenth Amendment arguments the Congress has no constitutional power to tax labor or income from labor, citing a variety of court cases. These arguments include claims that the word "income" as used in the Sixteenth Amendment cannot be interpreted as applying to wages; that wages are not income because labor is exchanged for them; that taxing wages violates individuals' right to property, and several others. Another argument raised is that because the federal income tax is progressive, the discriminations and inequalities created by the tax should render the tax unconstitutional under the 14th Amendment, which guarantees equal protection under the law. Such arguments

neg: Legal history of income tax in the United States (1916), the 1913 Act was ruled to be constitutional. A separate excise tax was also imposed on corporations. Subsequent legal actions were concerned with what should be counted as "income" under the 1913 Act. In "Eisner v. Macomber" (1920), the Supreme Court ruled that proportionate stock dividends were not taxable as income, on the grounds that the dividend income was not "severable" from the capital holding from which it was derived. Later decisions, however, have tended to limit this view of "severability," and to uphold the federal statutes as exertions of the power of Congress to tax. The first attempt

neg: Jock tax the tax on the earnings of Chicago Bulls players who traveled to Los Angeles to play the Lakers in that year's NBA Finals. Illinois soon retaliated, imposing its own "jock tax" on out-of-state players—although Illinois' tax is only imposed on athletes from states that impose jock taxes on Illinois-based players. Other states followed suit; by 2014, the only U.S. jurisdictions with major professional teams without a jock tax were Florida, Texas, Washington state, and Washington, D.C. (the three states do not impose personal income taxes, while the U.S. Congress specifically prohibits the District of Columbia from imposing its income tax

neg: Legal history of income tax in the United States and taxes on real estate. Therefore in "Pollock", the Court overruled a portion of the "Springer" decision by expanding the definition of direct taxes. The portion of the "Springer" decision that was not overruled by the Court in "Pollock" was the portion of the holding that applied to taxes on professional earnings. Since apportionment of income taxes is impractical, the Court's decision had the effect of prohibiting a federal tax on income from property. The power to tax real and personal property, or that such was a direct tax, was not denied by the Constitution. Due to the political difficulties

neg: Kazakhstan 2003. In 2000, Kazakhstan adopted a new tax code in an effort to consolidate these gains. On 29 November 2003, the Law on Changes to Tax Code which reduced tax rates was adopted. The value added tax fell from 16% to 15%, the social tax, from 21% to 20%, and the personal income tax, from 30% to 20%. On 7 July 2006, the personal income tax was reduced even further to a flat rate of 5% for personal income in the form of dividends and 10% for other personal income. Kazakhstan furthered its reforms by adopting a new land code

neg: Predicted effects of the FairTax repeal much of the existing tax code, but the Sixteenth Amendment would remain in place. Cases decided by the United States Supreme Court after the ratification of the Sixteenth Amendment have established that Congress has the power to enact an income tax even if the amendment did not exist. The elimination of the possibility that income taxation would return (through a separate Congressional bill), requires a repeal of the Sixteenth Amendment to the United States Constitution along with expressly prohibiting an income tax. This is referred to as an "aggressive repeal". The Constitution, however, does not require an income tax,

neg: Taxation in Georgia (country) Taxation in Georgia (country) Taxes in Georgia is collected on both state and local level. The most important taxes are collected on federal level, these taxes include an income tax, corporate taxes and value added tax. On local level property taxes well as various fees are collected. There are 6 flat tax rates in Georgia - Corporate Profit Tax, Value Added Tax, Excise Tax, Personal Income Tax, Import Tax and Property Tax. Personal Income tax in Georgia are collected at a flat rate of 20% on local-source income. Foreign-source personal income is tax-exempt. Personal Income Tax for interest, dividend and

neg: Sixteenth Amendment to the United States Constitution that the Sixteenth Amendment itself did not grant the Congress the power to tax incomes, a power the Congress had since 1789, but only removed the possible requirement that any income tax be apportioned among the states according to their respective populations. In "Penn Mutual Indemnity", the United States Tax Court stated: The United States Court of Appeals for the Third Circuit agreed with the Tax Court, stating: On December 22, 2006, a three-judge panel of the United States Court of Appeals for the District of Columbia Circuit vacated its unanimous decision (of August 2006) in "Murphy v. Internal Revenue

neg: Legal history of income tax in the United States Article I, Section 8 of the Constitution. The term "income" is not defined in the Internal Revenue Code. The closest that Congress comes to defining income is found in the definition of "gross income" in Internal Revenue Code section 61, which is largely unchanged from its predecessor, the original Section 22(a) definition of income in the Revenue Act of 1913: Sec. 22(a). "Gross income" includes gains, profits, and income derived from salaries, wages or compensation for personal service (including personal service as an officer or employee of a State, or any political subdivision thereof, or any agency or instrumentality of

neg: Tax protester constitutional arguments legally frivolous. Some protesters have argued that because the Sixteenth Amendment does not contain the words "repeal" or "repealed", the Amendment is ineffective to change the law. Others argue that due to language in "Stanton v. Baltic Mining Co.", the income tax is an unconstitutional direct tax that should be apportioned (divided equally amongst the population of the various states). Several tax protesters assert that the Congress has no constitutional power to tax labor or income from labor, citing a variety of court cases. These arguments include claims that the word "income" as used in the Sixteenth Amendment cannot be

neg: Alternative minimum tax are subject to the same rate of tax on long-term capital gains for regular tax and AMT. The deduction for personal exemptions is not allowed. Instead, all taxpayers are granted an exemption that is phased out at higher income levels. See above for amounts of this exemption and phase-out points. Due to the phase-out of exemptions, the actual marginal tax rate (1.25*26% = 32.5%) is higher for the income above the phase-out point. The married-filing-separately (MFS) phase-out does not stop when the exemption reaches zero, either in 2009 or 2010. This is because the MFS exemption is half of the

neg: Income tax in Australia federal government. In 1942, to help fund World War II, the federal government took over the raising of all income tax, to the exclusion of the States. The loss of the states' ability to raise revenue by income taxation was offset by federal government grants to the states and, later, the devolution of the power to levy payroll taxes to the states in 1971. The following historical personal income tax rates and brackets since 1983 are sourced from the ATO. These rates do not include the Medicare levy. In addition, the Flood Levy, introduced by the Gillard Labor Government as

neg: Taxation in New Mexico income. It does not have inheritance tax, estate tax, franchise taxes, or sales taxes. Its state income tax ranges from 1.7% to a maximum of 4.9%. New Mexico residents are subject to the state's personal income tax. Additionally, the personal income tax applies to nonresidents who work in the state or derive income from property there. Regular military salaries of New Mexico residents serving in the U.S. military are subject to the income tax, but since 2007, active-duty military salaries have been exempt from the state income tax. Personal income tax rates for New Mexico range from 1.7% to 4.9%,

neg: Predicted effects of the FairTax sponsor, is considering adding language to H.R. 25 during the 111th Congress that would require a supermajority vote of Congress to exempt any industry from the tax. The cost of preparing and filing all business and personal income tax returns is estimated to be $250–$300 billion each year. Approximately the same amount of money was estimated for calculating the tax implications of business decisions. That means approximately $500 to $600 billion was spent in the process of collecting roughly four times as much in taxes. According to a 2005 report from the U.S. Government Accountability Office, the efficiency cost of

neg: Legal history of income tax in the United States the Court ruled that punitive damages recovered under a violation of anti-trust laws were included in gross income, and that the language of Section 22 (now Internal Revenue Code Section 61) clearly showed the intent of Congress to exert "the full measure of its taxing power." In referencing its previous definition of income in "Eisner v. Macomber", the Court noted that "in distinguishing gain from capital, the definition had served a useful purpose. But it was not meant to provide a touchstone to all future gross income questions." Legal history of income tax in the United States Taxation of income

neg: Equalization Payments in Germany the Weimar constitution the cerntral government was granted legislative power and control of income and expenditure. The regionally fragmented financial administration was consolidated into a single entity and the states became financially dependent on the federal government. They basically received a proportional allocation of tax receipts divided among the states based on regional income and population. Any remaining differences in financial strength between the states were compensated for through a supplement guarantee made by the central government in accordance with state tax law (1920), which ensured that no state received less than 80% of the average state tax income. Finances

neg: Personal exemption Personal exemption Under United States tax law, a personal exemption is an amount that a resident taxpayer is entitled to claim as a tax deduction against personal income in calculating taxable income and consequently federal income tax. In 2017, the personal exemption amount was $4,050, though the exemption is subject to phase-out limitations. The personal exemption amount is adjusted each year for inflation. The Tax Cuts and Jobs Act of 2017 eliminates personal exemptions for tax years 2018 through 2025. The exemption is composed of personal exemptions for the individual taxpayer and, as appropriate, the taxpayer's spouse and dependents, as

neg: United States Tax Court United States Tax Court The United States Tax Court (in case citations, T.C.) is a federal trial court of record established by Congress under Article I of the U.S. Constitution, section 8 of which provides (in part) that the Congress has the power to "constitute Tribunals inferior to the supreme Court". The Tax Court specializes in adjudicating disputes over federal income tax, generally prior to the time at which formal tax assessments are made by the Internal Revenue Service. Though taxpayers may choose to litigate tax matters in a variety of legal settings, outside of bankruptcy, the Tax Court is

neg: 10p tax rate the adaptation. These changes were implemented in September 2008. In the years after the abolition of the reduced tax rate for low incomes, the UK government made further adaptations to personal income taxation, notably to the personal allowance: 10p tax rate The starting rate of income tax, often known as the 10p rate, was a special rate of personal income taxation in the United Kingdom that existed from 1999 to 2008. The starting rate was the lowest rate of income tax in the United Kingdom. It meant that certain incomes above the personal allowance would be taxed at a basic

neg: Income tax in Scotland differentiated tax on Scottish income since pre-Union times, although this was only a slight difference from the UK rates. Pending parliamentary approval of the 2018-19 budget, the government's income tax plans are as follows: †Assumes individuals are in receipt of the Standard UK Personal Allowance. ††Those earning more than £100,000 will see their Personal Allowance reduced by £1 for every £2 earned over £100,000. Income tax in Scotland Income tax in Scotland is a tax of personal income gained through employment. This is a tax controlled by the Scottish Parliament, and collected by the UK government agency HM Revenue &

neg: Wealth tax Wealth tax A wealth tax (also called a capital tax or equity tax) is a levy on the total value of personal assets, including: bank deposits, real estate, assets in insurance and pension plans, ownership of unincorporated businesses, financial securities, and personal trusts. Typically liabilities (primarily mortgages and other loans) are deducted, hence it is sometimes called a net wealth tax. A wealth tax taxes the accumulated stock of purchasing power, in contrast to income tax, which is a tax on the flow of assets (a change in stock). require declaration of the taxpayer's balance sheet (assets and liabilities), and

neg: Taxable income taxes on earnings above an income tax threshold, allow deductions for personal allowances or a minimum deemed amount of personal deductions. The United States federal tax system allows a deduction for personal exemptions, as well as a minimum standard deduction in lieu of other personal deductions. Some states in the United States allow few personal deductions. Taxable income Taxable income refers to the base upon which an income tax system imposes tax. Generally, it includes some or all items of income and is reduced by expenses and other deductions. The amounts included as income, expenses, and other deductions vary by

neg: Presidency of Ronald Reagan tax reform, Reagan overcame significant opposition from members of Congress in both parties to pass the Tax Reform Act of 1986. The act simplified the tax code by reducing the number of tax brackets to four and slashing a number of tax breaks. The top rate was dropped to 28%, but capital gains taxes were increased on those with the highest incomes from 20% to 28%. The increase of the lowest tax bracket from 11% to 15% was more than offset by expansion of the personal exemption, standard deduction, and earned income tax credit. The net result was the removal

neg: Personal allowance being announced in then-Chancellor Gordon Brown's 1999 budget, with the exception of people married, or in civil partnerships (introduced in 2005) where one spouse was born before 6 April 1935. Personal allowance In the UK tax system, personal allowance is the threshold above which income tax is levied on an individual's income. A person who receives less than their own personal allowance in taxable income (such as earnings and some benefits) in a given tax year does not pay income tax; otherwise, tax must be paid according to how much is earned above this level. Certain residents are entitled to

neg: Reaganomics year federal receipts grew from $599 billion to $991 billion (an increase of 65%) while fiscal year federal outlays grew from $678 billion to $1144 billion (an increase of 69%). According to a 1996 report of the Joint Economic Committee of the United States Congress, during Reagan's two terms, and through 1993, the top 10% of taxpayers paid an increased share of income taxes (not including payroll taxes) to the Federal government, while the lowest 50% of taxpayers paid a reduced share of income tax revenue. Personal income tax revenues declined from 9.4% GDP in 1981 to 8.3% GDP in

neg: Unrelated Business Income Tax were not subject to income tax on their revenue from any source as long as the revenue was used towards the organization's tax-exempt purpose. In 1950, Congress amended the tax law to introduce the concept of unrelated business income. Congress enacted the law because it was concerned about nonprofit organizations having an unfair advantage competing in the same activities as for-profit organizations. From that point on, revenue would be considered tax-exempt based on the source of the funds, rather than the use of the funds. Unrelated Business Income Tax Unrelated Business Income Tax (UBIT) in the U.S. Internal Revenue Code

neg: Dividend tax Dividend tax A dividend tax is the tax imposed by a tax authority on dividends received by shareholders (stockholders) of a company. The background of dividend tax starts from the 16th Amendment to the United States Constitution(02.03.1913). It states that“The Congress shall have power to lay and collect taxes on incomes, from whatever source derived, without apportionment among the several States, and without regard to any census or enumeration.”Obscurity of this statement made Congress impose tax anything that can be considered income, including dividends company pays for its shareholders. At the beginning of the Amendment(1913-1953), dividends were exempt, except for

neg: Distribution of the FairTax burden Proponents argue that if the rate appears too high, it brings to light the true cost of the federal government and the hidden taxes Congress has imposed on the American taxpayer. A study by Kotlikoff on marginal and average tax rates found that the FairTax would reduce most households’ average lifetime tax rates, although the study assumed an 18.3% cut in non-Social Security federal expenditure Economists at Boston University found that if their estimates of increased economic growth were correct the FairTax would reward low-income households with 26.3% more purchasing power, middle-income households with 12.4% more purchasing power, and high-income

neg: United States Tax Court reversal on appeal. Some information on this page is from the web site of the U.S. Tax Court, which, as a publication of the United States government, is in the public domain. United States Tax Court The United States Tax Court (in case citations, T.C.) is a federal trial court of record established by Congress under Article I of the U.S. Constitution, section 8 of which provides (in part) that the Congress has the power to "constitute Tribunals inferior to the supreme Court". The Tax Court specializes in adjudicating disputes over federal income tax, generally prior to the time at

neg: Pollock v. Farmers' Loan & Trust Co. was not the purpose or effect of that amendment to bring any new subject within the taxing power. Congress already had power to tax all incomes." Pollock v. Farmers' Loan & Trust Co. Pollock v. Farmers' Loan & Trust Company, 157 U.S. 429 (1895), "affirmed on rehearing", 158 U.S. 601 (1895), with a ruling of 5–4, was a landmark case in which the Supreme Court of the United States ruled that the unapportioned income taxes on interest, dividends and rents imposed by the Income Tax Act of 1894 were, in effect, direct taxes, and were unconstitutional because they violated the

neg: New Hampshire power, hydroelectricity, and wood fuel. The state has no general sales tax and no personal state income tax (the state does tax, at a 5 percent rate, income from dividends and interest), and the legislature has exercised fiscal restraint. Efforts to diversify the state's general economy have been ongoing. New Hampshire's lack of a broad-based tax system has resulted in the state's local communities having some of the nation's highest property taxes. However, the state's overall tax burden is relatively low; in 2010 New Hampshire ranked 44th highest among states in combined average state and local tax burden. As of

neg: Articles of Confederation direct control of Congress. There were 10 presidents of Congress under the Articles. The first, Samuel Huntington, had been serving as president of the Continental Congress since September 28, 1779. The peace treaty left the United States independent and at peace but with an unsettled governmental structure. The Articles envisioned a permanent confederation, but granted to the Congress—the only federal institution—little power to finance itself or to ensure that its resolutions were enforced. There was no president, no executive agencies, no judiciary and no tax base. The absence of a tax base meant that there was no way to pay

neg: Citizens for an Alternative Tax System Citizens for an Alternative Tax System Citizens for an Alternative Tax System (CATS) is a national tax reform public interest group in the United States. Their Las Vegas chapter proposes "that Congress should eliminate the IRS and all income taxes, corporate and personal; estate, gift and inheritance taxes, plus many excise taxes; replacing them with a single-rate tax on consumption—a national retail sales tax. According to sources, CATS was founded by Steven L. Hayes and shares a similar mission to national retail sales tax (NRST) and FairTax proponents such as John McCain, Fred Thompson, Mike Huckabee, Tom Tancredo, Duncan Hunter,

neg: Powers of the United States Congress Congress additional powers. Congress also has implied powers derived from the Necessary and Proper Clause of the Constitution. Congress has authority over financial and budgetary matters, through the enumerated power to lay and collect taxes, duties, imposts and excises, to pay the debts and provide for the common defense and general welfare of the United States. The Sixteenth Amendment, ratified in 1913, extended power of taxation to include income taxes. The Constitution also grants Congress exclusively the power to appropriate funds. This power of the purse is one of Congress' primary checks on the executive branch. Other powers granted to

neg: History of taxation in the United States 2010. This measure had a sunset provision and was scheduled to expire for the 2011 tax year, when rates would have returned to those adopted during the Clinton years unless Congress changed the law; Congress did so by passing the Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010, signed by President Barack Obama on December 17, 2010. At first the income tax was incrementally expanded by the Congress of the United States, and then inflation automatically raised most persons into tax brackets formerly reserved for the wealthy until income tax brackets were adjusted for inflation. Income tax

neg: Tax credit input credit. Some systems allow the excess of input credits over VAT obligations to be refunded after a period of time. Income tax systems that impose tax on residents on their worldwide income tend to grant a foreign tax credit for foreign income taxes paid on the same income. The credit often is limited based on the amount of foreign income. The credit may be granted under domestic law and/or tax treaty. The credit is generally granted to individuals and entities, and is generally nonrefundable. See Foreign tax credit for more comprehensive information on this complex subject. Several tax systems

neg: Personal allowance Personal allowance In the UK tax system, personal allowance is the threshold above which income tax is levied on an individual's income. A person who receives less than their own personal allowance in taxable income (such as earnings and some benefits) in a given tax year does not pay income tax; otherwise, tax must be paid according to how much is earned above this level. Certain residents are entitled to a larger personal allowance than others. Such groups include: the over-65s (followed by a further increased allowance for over-75s), blind people, and married couples where at least one person in

neg: Tax protester statutory arguments although related to, constitutional, administrative and general conspiracy arguments. Statutory arguments presuppose that Congress has the constitutional power to assess a tax on incomes, but that the Congress has simply failed to levy the tax by enacting a specific statute. In connection with various arguments that the Federal income tax should not apply to citizens or residents within the fifty states, some tax protesters have argued about the meanings of the terms "state" and "includes". One argument is that the definitions of "state" and "United States" in most subparts and the general definition in the Internal Revenue Code are what

neg: Consumption tax consumption taxes tend to be regressive with respect to income. However, because this tax applies on an individual basis, it can be made as progressive as a progressive personal income tax. Just as income tax rates increase with personal income, consumption tax rates increase with personal consumption. Economists from Milton Friedman to Edward Gramlich and Robert H. Frank have supported a progressive consumption tax. Consumption taxes, specifically excise taxes, have featured in several notable historic events. In the United States, the stamp tax, the tax on tea, and whiskey taxes produced revolts, the first two against the British government and

neg: Flat tax 16% flat tax on personal income and corporate profit on 1 January 2005. Macedonia introduced a 12% flat tax on personal income and corporate profit on 1 January 2007 and promised to cut it to 10% in 2008. Albania has implemented a 10% flat tax from 2008. Bulgaria applies flat tax rate of 10% for corporate profits and personal income tax since 2008. In the United States, while the Federal income tax is progressive, eight states — Colorado, Illinois, Indiana, Massachusetts, Michigan, North Carolina, Pennsylvania, and Utah — tax household incomes at a single rate, ranging from 3.07% (Pennsylvania) to

neg: Mark Eisner Mark Eisner Mark Eisner was a prominent lawyer, tax expert, and politician. Eisner served as Collector of Internal Revenue for the Third District (New York) from 1915 to 1919. In that capacity, he was responsible for administering the War Tax Law, which laid the groundwork for an expanded personal federal income tax law enacted by Congress in 1917. He is named in a number of important tax cases, including Eisner v. Macomber and Towne v. Eisner. In 1912, Eisner was elected to the New York State Assembly where he served two consecutive terms. He was also part of the New

neg: Tax protester Sixteenth Amendment arguments court ruled that Parker had raised a "frivolous" appeal. Tax protesters argue that in light of this language, the income tax is unconstitutional in that it is a direct tax and that the tax should be apportioned (divided equally amongst the population of the various states). The above quoted language in "Stanton v. Baltic Mining Co." is not a holding of law in the case. (Compare Ratio decidendi, Precedent, Stare decisis and Obiter dictum for a fuller explanation.) The quoted language regarding the "complete and plenary power of income taxation possessed by Congress from the beginning" is a reference to

neg: Taxpayer Choice Act Taxpayer Choice Act The Taxpayer Choice Act (/) was a bill in the United States Congress which, if enacted, would have amended the Internal Revenue Code to eliminate the alternative minimum tax on individual taxpayers. The bill was reproposed in 2009. The bill was not voted upon in either session. The legislation would create an alternative, simplified tax that individuals may choose over the current personal income tax. The new system would have two tax rates (up to $100K at 10% and 25% for everything above), a large standard deduction with no special deductions, and is argued to greatly reduce

neg: Window tax tax was introduced in England and Wales in 1696 under King William III and was designed to impose tax relative to the prosperity of the taxpayer, but without the controversy that then surrounded the idea of income tax. At that time, many people in Britain opposed income tax, on principle, because the disclosure of personal income represented an unacceptable governmental intrusion into private matters, and a potential threat to personal liberty. In fact the first permanent British income tax was not introduced until 1842, and the issue remained intensely controversial well into the 20th century. When the window tax was

neg: Internal Revenue Code section 61 Internal Revenue Code section 61 Section 61 of the Internal Revenue Code (IRC 61, ) defines "gross income," the starting point for determining which items of income are taxable for federal income tax purposes in the United States. Section 61 states that "except as otherwise provided in this subtitle gross income means all income from whatever source derived". The United States Supreme Court has interpreted this to mean that Congress intended to express its full power to tax incomes to the extent that such taxation is permitted under Article I, Section 8, Clause 1 (the Taxing and Spending Clause) of

neg: Mark Eisner York State Constitutional Convention of 1915. Eisner died on 28 March 1953 at the age of 66. Mark Eisner Mark Eisner was a prominent lawyer, tax expert, and politician. Eisner served as Collector of Internal Revenue for the Third District (New York) from 1915 to 1919. In that capacity, he was responsible for administering the War Tax Law, which laid the groundwork for an expanded personal federal income tax law enacted by Congress in 1917. He is named in a number of important tax cases, including Eisner v. Macomber and Towne v. Eisner. In 1912, Eisner was elected to the

neg: Purchase Line School District tax 0.7%, a property tax, a per capita tax $10, a real estate transfer tax 0.5%, Local Services Tax $10.00 levied on occupations, coupled with substantial funding from the Commonwealth of Pennsylvania and the federal government. In the Commonwealth of Pennsylvania, pension income and Social Security income are exempted from state personal income tax and local earned income tax, regardless of the individual’s personal wealth. The Local Tax Enabling Act was amended by Act 222 of 2004 to authorize all taxing authorities to exempt from per capita, occupation, emergency and municipal service or earned income taxes any person whose total

neg: John Linder a lending institution, and a member of the Georgia House of Representatives. Linder chaired the National Republican Congressional Committee, campaign funding arm of House Republicans, during the 105th Congress. He was defeated for a second term as chairman after a poor showing in the 1998 mid-term elections. In the 109th and 110th Congresses, Linder took a leadership role in the effort to enact fundamental tax reform. His legislation, the "Fair Tax Act, 2005" () and the "Fair Tax Act, 2007" (), was a proposal for changing United States tax laws to replace all federal personal income taxes, payroll taxes, corporate

neg: Tax resistance tax, a resister may reduce their income below the tax threshold by embracing simple living or a freegan lifestyle. For example, UK citizens pay no income tax if their income is below the personal allowance. In the US the equivalent tax-free annual income is the sum of the standard deduction and personal exemption, though many deductions and credits allow people to earn much more than this and still avoid income tax. Opposition to war has led some, such as Ammon Hennacy and Ellen Thomas, to a form of tax resistance in which they reduce their income below the tax threshold

neg: Revenue Act of 1948 Republican-controlled Eightieth Congress of the United States. Revenue Act of 1948 The United States Revenue Act of 1948 reduced individual income tax rates 5-13 percent, increased the personal exemption amount from $500 to $600, permitted married couples to split their incomes for tax purposes, made the distinction between community property jurisdictions and non-community property jurisdictions less relevant in the administration of the income, estate, and gift taxes, and provided additional exemption for taxpayers age 65 and older. The Revenue Act of 1948 was vetoed by President Harry S. Truman, but his veto was overridden on April 2, 1948, by a

neg: United States v. Correll rather a "’personal, living’ expense under § 262." The respondent paid the tax and sued for a refund in the District Court. He received a favorable verdict in the District Court, which was affirmed by the Court of Appeals for the Sixth Circuit. The Supreme Court granted certiorari “in order to resolve a conflict among the circuits on this recurring question of federal income tax administration.” If the cost of the meals did not qualify for a § 162(a)(2) business expense deduction, then they would be classified as a § 262 personal expense, and would be non-deductible. Whether the cost

neg: United States home front during World War II executive order 9250, to impose a 100% surtax on after-tax incomes over $25,000 (equal to roughly $ today). However, Roosevelt did manage to impose this cap on executive pay in corporations with government contracts. Congress also enlarged the tax base by lowering the minimum income to pay taxes, and by reducing personal exemptions and deductions. By 1944 nearly every employed person was paying federal income taxes (compared to 10% in 1940). Many controls were put on the economy. The most important were price controls, imposed on most products and monitored by the Office of Price Administration. Wages were also controlled.

neg: Indian Gaming Regulatory Act them that their mobile home was subject to state property taxes. Unable to pay the tax, they turned to legal services and filed a class action lawsuit against the state, alleging that the state did not have the jurisdiction to tax personal property of Native Americans living on reservations. According to the U.S. Constitution, the federal government possesses the sole right to treat with Native Americans. Case law has since granted Congress jurisdiction over Indian reservations. Yet, Public Law 280, passed by Congress in 1953, transferred criminal jurisdiction over Indian reservations from the federal government to certain states. Although both

neg: Brushaber v. Union Pacific Railroad Co. In "Brushaber", the Court held that the Sixteenth Amendment eliminated the requirement of apportionment as it relates to "taxes on incomes, from whatever source derived." Tax law professor Boris Bittker and his co-authors have stated: As construed by the Supreme Court in the "Brushaber" case, the power of Congress to tax income derives from Article I, Section 8, Clause 1, of the original Constitution rather than from the Sixteenth Amendment; the latter simply eliminated the requirement (Article I, section 9, clause 4 of the US Constitution) that an income tax, to the extent that it is a direct tax, must

neg: Eisner v. Macomber she overpaid. In the dissent, Justice Louis Brandeis took issue with the majority's interpretation of income. He argued that the Sixteenth Amendment authorized Congress to tax "incomes, from whatever source derived" and that the authors of the amendment "intended to include thereby everything which by reasonable understanding can fairly be regarded as income." Also, "Congress possesses the power which it exercised to make dividends representing profits, taxable as income, whether the medium in which the dividend is paid be cash or stock, and that it may define, as it has done, what dividends representing profits shall be deemed income." He

neg: Trans-Alaska Pipeline System Alaska's personal income tax rate was 14.5 percent—the highest in the United States. The gross state product was $8 billion, and Alaskans earned $5 billion in personal income. Thirty years after the pipeline began operating, the state had no personal income tax, the gross state product was $39 billion, and Alaskans earned $25 billion in personal income. Alaska moved from the most heavily taxed state to the most tax-free state. The difference was the Trans-Alaska Pipeline System and the taxes and revenue it brought to Alaska. Alyeska and the oil companies injected billions of dollars into the Alaska economy during

neg: Legal history of income tax in the United States of taxing individual wages without taxing income from property, a federal income tax was impractical from the time of the "Pollock" decision until the time of ratification of the Sixteenth Amendment (below). Thus, the 1894 tax law was ruled unconstitutional and was effectively repealed. In 1909, fifteen years after "Pollock", Congress took two actions to deal with their increasing revenue needs. 1. Corporate excise tax. First, Congress passed a corporate excise tax. The amount of the excise was set at 1% of each corporation's income exceeding $5,000. In 1911, the U.S. Supreme Court upheld this corporate excise as constitutional in

neg: 10p tax rate 10p tax rate The starting rate of income tax, often known as the 10p rate, was a special rate of personal income taxation in the United Kingdom that existed from 1999 to 2008. The starting rate was the lowest rate of income tax in the United Kingdom. It meant that certain incomes above the personal allowance would be taxed at a basic rate of 10%, which meant a reduced rate compared with the previous basic UK income tax rate of 23%. The reduced tax rate for low incomes was introduced in Gordon Brown's third budget as Chancellor of the Exchequer.

neg: Tax Equity and Fiscal Responsibility Act of 1982 government expenditures. The rapid rise in the budget deficit created concern among many in Congress. TEFRA was created in order to reduce the budget gap by generating revenue through closure of tax loopholes, introduction of tougher enforcement of tax rules, rescinding some of Kemp-Roth's reductions in marginal personal income tax rates that had not yet gone into effect, and raising some rates, especially corporate rates. TEFRA was introduced November 13, 1981 and was sponsored by Representative Pete Stark of California. After much deliberation, the final version was signed by President Ronald Reagan on September 3, 1982. The Act includes certain

neg: Berwick Area School District combination of: a local tax on income (Occupational Assessment Tax) $10, a property tax, a per capita tax $10, a real estate transfer tax 0.5%, Local Services Tax $5 coupled with substantial funding from the Commonwealth of Pennsylvania and the federal government. Grants provide an opportunity to supplement school funding without raising local taxes. Interest earnings on accounts also provide nontax income to the District. In the Commonwealth of Pennsylvania, pension income and Social Security income are exempted from state personal income tax and local earned income tax, regardless of the level of the individual's personal wealth. The average Pennsylvania

neg: Cumberland Valley School District local earned income tax - 1.10%, a local real property tax, local service tax - $5, a real estate transfer tax 0.5%, and a per capita tax, coupled with substantial funding from the Commonwealth of Pennsylvania and the federal government. Grants provide an opportunity to supplement school funding without raising local taxes. Interest earnings on accounts also provide nontax income to the district. In the Commonwealth of Pennsylvania, pension income and Social Security income are exempted from state personal income tax and local earned income tax, regardless of the level of the individual’s personal wealth. Current budget information may be

neg: Income tax for the tax that residents already pay to other countries on their foreign income. Many countries also sign tax treaties with each other to eliminate or reduce double taxation. Countries do not necessarily use the same system of taxation for individuals and corporations. For example, France uses a residential system for individuals but a territorial system for corporations, while Singapore does the opposite, and Brunei taxes corporate but not personal income. Public disclosure of personal income tax filings occurs in Finland, Norway and Sweden (as of the late-2000s and early 2010s). Income tax An income tax is a tax imposed

neg: Income tax in the United States peacetime income tax. The rate was 2% on income over $4000, which meant fewer than 10% of households would pay any. The purpose of the income tax was to make up for revenue that would be lost by tariff reductions. In 1895 the United States Supreme Court, in its ruling in "Pollock v. Farmers' Loan & Trust Co.," held a tax based on receipts from the use of property to be unconstitutional. The Court held that taxes on rents from real estate, on interest income from personal property and other income from personal property (which includes dividend income) were treated