The Bureau of Economic Analysis attempts to translate the damages from natural disasters like hurricanes into two effects: the destruction of property and the capital stock buildings and equipment and the disruption of the flow of income that this stock of capital produces.
Individual income taxes as well as corporate taxes are now far more rooted in the shifting sands of volatile business income and capital profits rather than in the terra firma of wage income that stabilizes payroll taxes.
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One is that a large fraction of the income consists of dividends and capital gains.
The news that Mitt Romney earns most of his income in the form of capital gains is really no surprise.
Because they distribute most of their income and capital gains in the form of dividends during the good times, they are unable to pay down debt or build up cash reserves prior to the inevitable downturns.
If there is going to be a preferential rate for capital gains, people are going to try to structure as much of their income to take the form of capital gain as possible.
Policymakers concerned about the political ramifications of this monumental debate would be wise to heed the words of income and capital gains tax-cutting former President John F.
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This can create the very odd situation for some wealthy filers whose income composed primarily of capital gains and qualified dividends are taxed at a rate of only 15% on their Federal return and 9.55% (or more) on their state.
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Newcomers are attracted by the absence of state income and capital-gains taxes, cheap housing and, compared with most other parts of America, a steady stream of jobs.
So if you are a multimillionaire who get most of your income from dividends and capital gains, then you're typically paying 15 percent of your income in taxes, at the federal level.
In September, the Congressional Research Service found that over the last 65 years the level of income tax rates and capital gains rates was not a predictor of economic growth.
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X-tax, there was no taxation of financial income (dividends, capital gains and interest income) at the individual level, and hence no double taxation of saving.
So if trust income is a mixture of dividend, capital gain and tax-free income (from muni bonds or principal), the ordinary income must be used up before the payout can be taxed as gain, and gain must be used before the payout can be tax-free.
Or because they derive much of their income as capital gains or from tax-free municipal bonds.
Note that this break works best if your main (or only) source of income is from capital gains.
Besides dividends and interest, other sources of unearned income include capital gains, gambling winnings, alimony, Social Security payments, pensions and annuities.
It allows hedge-fund managers to classify much of their income as capital gains, which are taxed at a far lower rate than regular income.
The main thing is that owners can cover two of their big occupancy expenses (property tax and the cost of capital) out of pretax income.
And with unemployment stubbornly stuck near 10%, there is no better time than now to relieve domestic workers from the burden of capital income taxation.
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The history of capital income taxation offers important lessons.
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However, if the Pritzkers could establish an arms-length relationship with the trust (by having it set up by a foreign citizen), then Uncle Sam wouldn't tax any of its income or capital gains.
There are broadly three issues: income, vulnerability to a rise in interest rates (which cuts the value of lower-yielding bonds) and exposure to erosion by inflation (which reduces the value of both income and capital).
"There is a lot of unemployment in Saudi at the moment, so many people are naturally looking for other sources of income in the capital market, " said Oubada Duwaji, an investment advisor at Shuaa Capital in Dubai.
At the national level the balance of primary incomes makes gross income, i.e. before deduction of consumption of fixed capital, equal to Gross National Income (GNI).
But the capital gains tax is only one layer of taxation on capital income.
Gingrich proposed as well to abolish the capital gains tax altogether, which is just an additional layer of taxation on capital income, in addition to the individual income tax, the corporate income tax, and the death tax.
They match to the BEA numbers as labour share being compensation of employees, taxes minus subsidies are the same of course, mixed income is proprietors income and everything else is part of the capital share.
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In effect, previous holders of these bonds have seen five years of income wiped out by capital erosion.
It's hard to predict who will run afoul of AMT, since the tax is based on complex interactions of income, deductions and capital gains.
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