Why Is The Power To Tax The Most Important Power A Government Can Be Given? Article I, Section 8 gives Congress the power to “lay and collect taxes, duties, imports, and excises.” The Constitution allows Congress to tax in order to “provide for the common defense and general welfare.” The Court has flip-flopped on the
Can Tax Be Charged On A Fee? Yes, if you purchase something taxable, such as soda, alcohol, or carbonated water. For example, if you buy a can of soda from a retailer, you may be charged tax on the combined price of the soda and the CRV fee. What purchases are not taxed? Sales of
Which Disadvantage Of The Value Added Tax VAT Is Most Likely To Be Cited By People With Low Incomes? A decrease in personal income tax. Which disadvantage of the value-added tax (VAT) is most likely to be cited by people with low incomes? As a consumption tax, everyone pays the same amount, regardless of ability
Which Country Pays The Lowest Percent In Taxes? Some of the most popular countries that offer the financial benefit of having no income tax are Bermuda, Monaco, the Bahamas, Andorra and the United Arab Emirates (UAE). What countries have lower taxes than the US? Among OECD countries, only Chile, Ireland, and Mexico collected less tax
Is Real Estate Taxes The Same As Property Taxes? Real estate taxes are the same as real property taxes. They are levied on most properties in America and paid to state and local governments. The funds generated from real estate taxes (or real property taxes) are typically used to help pay for local and state
Why Would A Flat Tax Not Work? Some drawbacks of a flat tax rate system include lack of wealth redistribution, added burden on middle and lower-income families, and tax rate wars with neighboring countries. Why don’t we use a flat tax? Flat taxes are usually imposed on wages only, meaning that there’s no tax on
What Was The Capital Gains Tax In 2005? Tax Year Total Realized Capital Gains ($ millions) Maximum Tax Rate (%) 2002 268,615 21.16 2003 323,306 21.05/16.05 2004 499,154 16.05 2005690,152 16.05 What was the capital gains tax in 2006? (b) The Taxpayer Relief Act of 1997 provided that after January 1, 2006, the 20% rate
How Do You Get An AMT Credit? Review your tax returns from the year you exercised stock options to determine if you paid the AMT. Review your prior year tax returns to determine if you claimed the AMT credit in any previous year and determine if you have a credit leftover for this year. What
When Were The Townshend Acts Repealed? All of the Townshend Acts—except for the tax on tea—were repealed in April 1770. Why did the Townshend Acts get repealed? The British parliament repealed the Townshend duties on all but tea. Pressure from British merchants was partially responsible for the change. More importantly, the British government wished to
Is The Sale Of Real Estate Considered Income? When you sell real estate, you are usually subject to capital gains tax. Capital gains are included in your income, although they are taxed differently from your ordinary income. … If you sell your primary residence, you can exclude capital gains up to $250,000 from your income