(B) The amount determined pursuant to this section with respect to any taxable property or service is the lesser of:(1) the product of:(a) the rate imposed by Section 12-34-201; and(b) the fair market value of the property or service when its use commences to be ninety-five percent or more used for business purposes; or(2) the amount of tax paid with respect to the taxable property or service, including the amount, if any, determined in accordance with Section 12-34-705.
Section 12-34-303. For purposes of Section 12-34-301(A)(2), a person's intermediate and export sales credit is the amount of sales tax paid on the purchase of any taxable property or service purchased for:(1) a business purpose in a trade or business; or(2) export from the State for use or consumption outside the United States of America.
(B) For all other purposes in this chapter:(1) In the case of a debt instrument, investment, financing lease, or account with a term of not more than three years, the applicable interest rate is the federal short-term rate.
Amount of time a taxpayer stays in a foreign country, which is one of the factors used to determine whether the taxpayer is eligible for the foreign earned income exclusion. To meet the period of stay requirement, the taxpayer must meet either the Bona Fide Residency test or the Physical Presence test.
Reforming our tax system to put more money in the hands of the working-poor and middle-class would allow more young people to grow up in stable families and get advanced education and training. These and increased public investment in education in turn increase the likelihood that each person’s success is largely determined by their talent and hard work, rather than the financial means of his or her parents. Studies show that social mobility, as measured by income, is now lower in the United States than in Great Britain or Scandinavian countries. Promoting social mobility here and giving more Americans the opportunity to reach their full potential is certainly the most effective way to improve our economy, strengthen our nation, and make progress toward a better world. A World Bank economist, Branko Milanovic, has written: “Widespread education has become the secret to growth. And broadly accessible education is difficult to achieve unless a society has a relatively even income distribution.”
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If the asset is sold, any amount received greater than the $12,000 basis is a gain. Except for sales to a related party, any amount received less than the $12,000 basis would be a loss. For capital losses, the deductibility may be limited to offsetting capital gains plus up to $3,000 of other income per year (for individuals). The income tax basis is subtracted from the selling price to determine gain or loss.
Picking Winners and Losers. A further problem with the tax base is that Congress has loaded it with too many politically motivated credits, deductions, and exemptions. These provisions inhibit economic growth by eroding the tax base, which necessitates higher tax rates for other activities in order to raise a certain level of revenue. They also alter the decisions of families and businesses. Market forces should determine those decisions, not Washington lawmakers. When government policy picks winners and losers in such a way, it reduces economic efficiency because resources are not put to their highest-valued use. The economy suffers because of the distortion. The most glaring example of such policies are the myriad of tax breaks for the production and consumption of politically favored types of energy and energy-efficient products.
The term 'taxable employer' does not include any employer which is engaged in a trade or business, a qualified not-for-profit organization, a government enterprise, or an educational or training institution.
Many of the Richs’ tax advantages over the Smiths are due to their living off of investments rather than wages. Although the Richs’ investments yielded about $157,000 over the year, 75% of it was in Mrs. Rich’s tax-deferred retirement account and/or in the form of unrealized capital gains. These investment gains are not reportable to any tax authority and are not taxed. The Richs can redeem the money they spend from their investments while keeping their taxable income low by selectively selling those assets that have gained the least and offsetting some of those taxable gains with paper "investment losses" from prior years. On the other hand, the Smith’s income consists of only wages and a bit of interest on their savings, both of which are fully subject to federal and state income taxes. Since making the down payment on their home, they have not re-accumulated enough money to open a tax-deferred retirement account.
(12) 'Taxable property or service' means:(a) any property, including leaseholds of any term or rents with respect to the property, except for:(i) intangible property; and(ii) used property; and(b) any service, including any financial intermediation services.
For the Richs’ federal income taxes, two classes of investment income - qualified dividends and long-term capital gains - represent 90% of their reportable income and were taxed at 9% (federal and state combined), about half the rate they would have paid had they earned the money in wages or interest. Nationally, three-quarters of these tax-favored investment gains go to the top 1% income-earners. The Smiths paid the full tax rates on all of their income, and have a combined federal income, federal payroll, and state income marginal tax rate of 33% on every extra dollar they earn in wages or savings account interest.