Category Taxation in USA

Undocumented Migrants Pay $2 Billion in Tax

April 28, 2017 Taxation in USA

Tax returns in the USAWASHINGTON D.C. – Undocumented migrants in the USA are paying out more than their fair share in income tax, according to a new study.

In a report released earlier this week the US think tank the Institute on Taxation and Economic Policy (ITEP) showed that some undocumented immigrants in the USA pay a total of USD 2 billion in state and local taxes per year.

The new study revolves around the taxes paid by individuals who fall within the scope of the DACA program, which allows some illegal migrants to live in the country, if they were brought to the USA at a young age.

Currently approximately 1.3 million undocumented migrants who are enrolled in the DACA system paid income taxes.

The young taxpayers are estimated to have paid approximately 8...

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Trump Reveals New Tax Plan

April 27, 2017 Taxation in USA

Trump Tax PlanWASHINGTON D.C. – The US Trump administration has pushed out its tax reform plan, touting new tax cuts, but without any new tax revenue streams.

On April 26th the Trump Administration released its blueprint for upcoming tax reforms to be enacted in the USA.

The new blueprint is intended to be used as a guide and direction for lawmakers as they debate the proposed tax reform bill over the coming months.

The new plan has been hailed as the “biggest individual and corporate tax cut in American history”.

The key points of the plan revolve around the reduction of corporate income tax from a rate of 35 percent to 15 percent, and a reduction in the number of tax thresholds for personal income, from the current seven to three.

The number of tax deductions available for households would doubl...

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First Sugar Tax in US proves Successful

April 21, 2017 Taxation in USA

Sugar taxesWASHINGTON D.C – America’s first tax on soda and other sugary drinks seems to have paid off, with consumers buying fewer sugary drinks, but the level of taxes and revenues not dropping.

On April 18th the results of a new study were published in the medical journal PLOS Medicine, with an evaluation of the outcomes of the first tax on sugar sweetened beverages enacted in the USA.

In March 2015 a “penny per ounce” tax was added to the sale of sugar-sweetened beverages in the USA, a measure which saw an effective cost hike of USD 0.12 per can of drink sold, and a rise of USD 0.68 per two litre bottle sold.

The results of the study suggested that the overall sales of the drinks fell by nearly 10 percent during the course of the past year.

It was also seen that bottled water, and other untaxed...

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Tax Freedom Day Coming Soon

April 19, 2017 Taxation in USA

Tax Freedom DayWASHINGTON D.C. – On April 23rd Americans will have paid enough tax to cover their annual tax obligations.

The Tax Foundation has released its annual Tax Freedom Day report, showing the date that American taxpayers can stop working to pay the government, and can start working to pay themselves.

According to the latest calculations, the Tax Freedom Day in the USA in 2017 will fall on April 23rd, the 113th day of the year.

The total tax bill faced by taxpayers in the USA over the course of this year will be USD 5.1 trillion, which represents 31 percent of the nation’s income, and is made up of USD 3.5 trillion in federal taxes, and USD 1.6 trillion state and local taxes.

The total tax burden is more than the nation will collectively spend on food, clothing, and shelter combined.

It was...

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Seeing Poverty Doesn’t Lead to Sympathy

January 18, 2017 Taxation in USA

Poverty and taxesWASHINGTON D.C. – Seeing poverty does not make people more sympathetic or willing to support taxes on the rich.

A new study published in the journal Proceedings of the National Academy of Sciences of the United States of America has shown that exposure to poverty makes individuals less willing to support taxes on wealthy taxpayers.

The study was based on a set of controlled experiments where participants were asked to sign a petition calling for extra taxes on extremely wealthy individuals.

In the study the environment was controlled to vary the levels of poverty seen at the time that the participants were asked to sign the petition.

It was found that exposure to poverty resulted in a decreased willingness by participants to support increased taxes on the incomes and wealth of well-off ...

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