Category Taxation in USA

Slashing Taxes Improves States’ Business Environments

October 19, 2017 Taxation in USA

US state taxesWASHINGTON D.C. – Dropping taxes or keeping rates low is the key to having the best business environment in the USA, say researchers.

On October 17th the US think tank, the Tax Foundation, released its annual State Business Tax Climate Index.

The Index is designed to show how each state compares in terms of the taxes applied to businesses, their incomes, to property ownership, or employee salaries.

The top 10 states were Wyoming, South Dakota, Alaska, Florida, Nevada, Montana, New Hampshire, Utah, Indiana, and Oregon.

The lowest 10 states were Rhode Island, Louisiana, Maryland, Connecticut, Ohio, Minnesota, Vermont, California, New York, and New Jersey.

Researchers at the Tax Foundation noted that a common element among the top-ranked states was the absence of a major tax, such as corpor...

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IRS Already Tracking Bitcoin

August 25, 2017 Taxation in USA

bitcoin taxWASHINGTON D.C. – The IRS has spent years keeping track of Bitcoin movements to build a chain of evidence to catch money launderers.

New information released by the Inland Revenue Service through a Freedom of Information Act request has revealed that the tax authority has been tracking the seemingly anonymous use of Bitcoins since as early as 2017.

The information released shows that nearly 2 years ago the IRS paid for software which is able to analyse and track the movement of Bitcoins from one “wallet” to another.

The tracking allows the IRS to build a detailed history of transfers between various Bitcoin holders.

The information itself cannot be used to identify a Bitcoin holder directly.

However, when the Bitcoins are accepted by an entity which is bound by AML and KYC regulations...

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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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