BNET Business Dictionary
Business Definition for: Income Tax
- a tax levied directly on the income of a person or a company and paid to the local, state, or federal government.
- Abbr. IT
Wiktionary Definition for: Income Tax
- a tax levied on earned and unearned income, net of allowed deductions
Additional Resources
- Redistribution Via Taxation: The Limited Role of the Personal Income Tax in Developing Countries
- In developed countries, the income tax, especially the personal income tax, has long been viewed as the primary instrument for redistributing income and wealth. This paper examines whether it makes sense for developing countries to rely on the income tax for redistributive purposes. First, the personal income tax has done...
- White papers 2005-03-08
- Earned Income Credit (EIC) Calculator
- Earned Income Credit EIC is a tax credit available to low income earners. In some cases the EIC can be greater than your total income tax bill, providing an income tax refund to families that may have little or no income tax withheld from their paychecks. Use this tool to...
- Tools & templates 2008-01-01
- Tax Bases, Tax Rates and the Elasticity of Reported Income
- Tax reforms usually change both tax rates and tax bases. Using a panel of income tax returns spanning the two major U.S. tax reforms of the 1980s and a number of smaller tax law changes, the paper finds that the elasticity of income reported on personal income tax returns depends...
- White papers 2003-10-01
- Marginal Tax Rate Calculator
- Knowing your income tax rate can help you calculate your tax liability for unexpected income, retirement planning or investment income. This tool helps you estimate your average tax rate, your current tax bracket, and your marginal tax rate for the current tax year.
- Tools & templates 2008-01-01
- The Negative Income Tax and the Evolution of the U.S. Welfare Policy
- The negative income tax proposed by Milton Friedman represents one of the fundamental ideas of modern welfare policy. However, the academic literature has raised two difficulties with it, one challenging its purported work incentives and the other suggesting the possible superiority of work requirements. In addition, work requirement approaches have...
- White papers 2003-06-03
- Income Shifting, Investment, and Tax Competition: Theory and Evidence From Provincial Taxation in Canada
- The paper studies corporate income taxation when firms operating in multiple jurisdictions can shift income using tax planning strategies. A simple theoretical model shows how income shifting affects real investment, government revenues, and tax base elasticities, depending on whether firms must allocate income to provinces or not. It then analyzes...
- White papers 2003-04-10
- Tax Deduction (Business Tax Deduction Tips)
- Tax deductions contribute to national prosperity by providing capital to business. Businesses can grow faster with capital provided by income tax savings. Tax deductions reduce taxable income. Tax laws are complicated. There are myriad types of tax deductions. These include both cash and non-cash tax deductions. A $100,000 tax deduction...
- White papers 2007-12-01
- The Relation Between Financial and Tax Reporting Measures of Income
- This paper examines the magnitude and sources of difference between income for tax and financial reporting purposes using publicly available data from1988 to 1998. It finds evidence that the book-tax income spread has generally increased over time, but that a relatively small set of variables are able to explain this...
- White papers 2001-05-04
- Personal Income Taxes and the Growth of Small Firms
- This paper investigates the effect of entrepreneurs' personal income tax situations on the growth rates of their enterprises. We analyze the personal income tax returns of a large number of sole proprietors before and after the Tax Reform Act of 1986 and determine how the substantial reductions in marginal tax...
- White papers 2000-10-17
- "Extraterritorial Income Exclusion Act": U.S. Software Developers May Be Eligible for Tax Benefits for Foreign Income
- U.S. software development companies that sell their software products abroad may wish to consider whether recently enacted tax legislation will produce a tax benefit for them for income from such sales. For some taxpayers, the new regime may provide tax advantages over the former foreign sales corporation ("FSC") provisions that...
- White papers 2003-05-06
- House Advantage
- Top-rated bonds have delivered solid returns as a safe haven, but that status may not last when interest rates rise. As an alternative, consider federal housing tax credits clients. Tax credits lower an investor's tax bill and increase after-tax income. Low-income housing tax credits provide a tax shelter that literally...
- White papers 2003-01-01
- Taxes (How Catch Up Depreciation Can Save Real Estate Investors Over $1 Million in Taxes)
- Income taxes are a substantial burden. Reducing income taxes provides real estate investors a higher level of return and additional capital for real estate investment. Income tax laws are amazingly complicated. Many income tax preparers are aware of a concept known as cost segregation to increase real estate depreciation. Unfortunately,...
- White papers 2007-12-01
- Distortion Costs of Taxing Wealth Accumulation: Income Versus Estate Taxes
- Recently, attention has focused on the estate tax. To date, however, the debate over estate taxes has been nearly devoid of standard considerations of deadweight loss. This paper develop a framework for computing the deadweight loss of a revenue-neutral switch from an estate tax to a capital income tax, focusing...
- White papers 2001-04-24
- Tax Policy for Emerging Markets: Developing Countries
- This paper discusses important tax policy issues facing developing countries today. It views tax policy from both the macroeconomic perspective, which focuses on broad questions such as the level and composition of tax revenue, and the microeconomic perspective, which focuses on certain design aspects of selected major taxes, such as...
- White papers 2000-06-01
- Marginal Suppliers, Taxation, and Rental Housing:Evidence from Microdata
- "Typically, when the effects of tax reform are measured, it is assumed that marginal suppliers belong to the highest income tax bracket. This assumption is critical because in competitive housing markets, tax shelter benefits from investments in rental housing will be passed on in the form of lower market rents...
- White papers 2003-01-01
- Responses to Taxes Simply Income Shifting Between Corporate and Personal Tax Bases?
- Two well-noted phenomena of recent decades are the increasing concentration of personal income and the declining rate of corporate profitability. This paper investigates to what extent these two trends have a common explanation extent these two trends have a common explanation-shifting of income to the personal tax base from the...
- White papers 1998-05-01
- Municipal Bond Tax Equivalent Yield
- This tool will estimate The Tax-Equivalent Yield TEY for a municipal bond. Income generated from municipal bond coupon payments are not subject to federal income tax. In addition, if the bond was issued in your state of residence, you can also avoid state income taxes. Use this tool to determine...
- Tools & templates 2008-01-01
- Tax Systems In Transition
- The paper shows a key aspect of transition, namely a movement from a system where the government exercised a preeminent claim on output and income. The authors suggest that transition countries, depending on their stage of development, should aim for a tax revenue-to-GDP ratio in the range of 22 to...
- White papers 2003-01-01
- Employment and Growth Effects of Tax Reforms
- This paper explores how revenue-neutral tax reforms impact employment and economic growth in a model of endogenous growth and search frictions on the labor market. It analyzes how savings and the incentive to create new jobs are affected by tax swaps between wage income taxes, payroll taxes, capital income taxes...
- White papers 2004-06-01
- Should I Convert To A Roth IRA?
- If your adjusted gross income is $100,000 or less and you are not a married individual filing separately, you may be eligible to convert your traditional IRAs to a Roth IRA in order to take advantage of federally tax-free earnings in the future. You will generally pay ordinary federal income...
- Tools & templates 2008-01-01
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