personal income tax tagged posts

VAT Increase Delays Tax Freedom Day

December 30, 2010 Taxation in UK

Few PoundsThe UK Government’s upcoming increase to the national Value Added Tax rate will push the country’s Tax Freedom Day back by three more days.

On December 29th the UK Adam Smith Institute (ASI), an independent financial think tank, revealed that the average UK taxpayer will spend approximately 149 days worth of income in 2011 just to pay their personal tax bill. The Institute completes the calculation every year, based on the latest average earnings levels of UK taxpayers and the country’s applicable tax rates. The calculated date is commonly referred to as the national Tax Freedom Day (TFD).

The UK TFD date for the 2011 year will fall on May 30th, compared to May 27th in 2010...

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Scottish Budget Gives Rise to Tax Autonomy Scandal

November 22, 2010 Taxation in UK

Alex SalmondThe recent release of the Scottish national budget is being overshadowed by a revelation that the Scotland’s leading government party secretly abandoned its only independent tax power, leaving the country with no tax autonomy for at least two years.

Last week the Scottish National Party (SNP) revealed the country’s budget for the upcoming year. However, the announcement was marred when a round of in-Parliament questioning led the Finance Minister to disclose that the Party opted to forgo the opportunity to keep the Scottish Variable Rate (SVR) system, without consulting or informing the national Parliament.

Under current regulations, the only autonomous tax revenue raising power the Scottish Government can exercise is the SVR, otherwise known as the “tartan tax”...

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111 000 US Taxpayers Missing Their Tax Refunds

November 19, 2010 Taxation in USA

Yay! Ta Cash bonus day!!! WOOOO!The US Internal Revenue Service currently holds USD 164.6 million worth of tax refunds that are yet to be delivered to taxpayers, mainly due to clerical errors or outdated delivery and personal details.

The US Internal Revenue Service (IRS) is actively urging taxpayers to migrate to an electronic tax return filing system, pointing to the fact that a vast number of people are yet to receive their tax refunds simply because they could not be delivered to the right address due to old or inaccurate personal records. On November 17th the IRS reveled that a total of 111 893 taxpayers across the country are still waiting for their refunds, which were sent to them in the form of a cheque but were subsequently returned or deemed undeliverable.

According to the IRS, in 2010 the average tax refund am...

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US Tax Revenues Show Long-Awaited Increases

July 14, 2010 Taxation in USA

The One we trust...Total tax revenue collections for US States have shown the first rise in broad-level collections since the third quarter of 2008. However, the increase is not indicative of an overall economic recovery, and was caused predominantly by tax rate increases.

On July 13th the Nelson A. Rockerfeller Institute of Government released its latest State Revenue Report. The publication showed that state’s overall tax revenues experienced a 2.5 percent increase in the first quarter of 2010, compared to the same period last year, although despite the improvement, collections were still down by 9.3 percent, compared to the pre-recession levels of two years ago.

The total improvement in tax revenues consisted of rises in collections of Personal Income Tax (2.5 percent), General Sales Tax (0...

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US Will Have Highest Top Dividend Tax Rate

June 8, 2010 Taxation in USA

tax_2960New research indicates that the US will soon have the highest tax burden on corporate profits in the OECD, potentially leading to a decrease in the overall productive capacity of the US economy.

On June 7th the independent US think-tank Tax Foundation released The Economic Effects of the Lower Tax Rate on Dividends, a special report which analyzes the double-level of taxation on corporate profits in the US. According to the report, equity-financed investment profits in the US are taxed under corporate income tax and, subsequently, under personal income tax when profits are distributed as dividend payments. In 2011 the cumulative tax liability on corporate profits will increase to 67.6 percent, exceeding rates levied across all the OECD and G7 member nations.

The double-taxation “problem” i...

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