If any is paid out as dividends, then it is taxed again by the individual income tax.
Capital income is also subject to the corporate income tax, the individual income tax, and the death tax.
In 1997 the IRS estimated that Americans paid 83% of the individual income tax they owed voluntarily, with enforcement bringing in another 3%.
They also say the proposal doesn't benefit the typical U.S. small business since most small firms are taxed at the individual income tax level.
As such, this big increase in revenue from the individual income tax means that the overall tax burden will climb by approximately the same amount.
FORBES: Divisions Rise Among Conservatives On Accepting Tax Hikes To Cut Deficit
To be more specific, it shows how much revenue the government will collect from the individual income tax even if the 2001 and 2003 tax cuts are made permanent and the AMT is indexed.
FORBES: Divisions Rise Among Conservatives On Accepting Tax Hikes To Cut Deficit
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.
The issue -- the canard the Republicans put out there is that a lot of small businesses file as S corps, I believe it's called, and under the individual income tax code, 97 percent of them would not be affected by this.
First, by the corporate income tax, then again by the individual income tax through the tax on dividends, then if you sell the capital investment, through the capital gains tax (which taxes the increase in the present value of the future income stream to the investment, which will be taxed again when earned), then when you die, by the death tax.
FORBES: Obama's Budget: The Decline and Fall of the American Economy
Like most tax debates since 2001, the one that gripped much of the business community at the end of 2012, boiled down to conflict over the upper individual income tax brackets and the impact that any increase to those rates would have on small businesses.
FORBES: The Hidden 33%: How Mid-Sized Companies Are Hit Hardest By Tax Hikes
In 1955, the top individual income tax rate was 91% and the top capital gains tax rate was 25%.
In 2008, the top individual income tax rate was 35% and the top capital gains tax rate was 15%.
Most other countries either tax the profit at the corporate level and then dividends are tax free, or dividends are distributed tax free at the corporate level and then taxed at the usual individual income tax rates.
FORBES: This Might Not Be The Best Time To Be Investing For A Dividend Income
He proposes to cut the corporate tax rate from 35% to 15% and to cut the top individual income tax rate from 35% to 25%.
If this proposed tax rate is approved, it would put France on top for having the highest individual income tax margin, surpassing Sweden, Japan and Britain, all with tax margins of 50 percent or more.
FORBES: Why The Next Apple, FedEx Or McDonald's Won't Come Out Of Europe
As you can see, the aggregate individual income tax burden will increase by roughly 5 percentage points of GDP when compared to the long-run average of about 8 percent of GDP (the CBO estimate only goes to 2035, so I extrapolated to show the same time period as the first chart).
FORBES: Divisions Rise Among Conservatives On Accepting Tax Hikes To Cut Deficit
Generally, the highest individual income tax rate on qualified dividends is 15% for 2012.
Over the past decade, the federal individual income tax has changed every year.
For many of these small business owners, the maximum individual income tax rate will rise from 35% to 39.6% around 2013, says BDO.
On the individual income-tax front, Obama has made plain that taxes on the rich should go up as a way of sharing the wealth.
In 2011, for example, the federal individual income tax averaged 11.5 percent of AGI but just 9.3 percent of total cash income, the much broader measure of income that TPC generally uses for its analyses.
If no further action is taken by Congress, the maximum individual income tax bracket would increase to a stated rate of 39.6%, but an effective marginal rate of 40.8% for most high-bracket taxpayers due to a limitation on itemized deductions that would also come back in 2013.
Making the Bush tax cuts permanent, as Mr. McCain has pledged to do, would leave the top individual income-tax rate at 35%, the capital gains and dividends tax rates at 15% and eliminate the repetitive death tax.
The most important change is that the much lower individual income tax rates after tax reform, from a top rate of 70% when Reagan entered office to 28% after the reform, caused billions in business income to switch from corporate tax returns to individual tax returns as subchapter S corporations, partnerships, LLCs (limited liability partnerships), and proprietorships.
FORBES: The Equality Of Reaganomics, And Fallacious Leftist Dissent
The extension of the Bush tax cuts through 2012 will keep the 35% maximum individual income tax rate for 2011 and 2012.
In return, the top individual income top tax bracket would be reduced from its current 35% to 28% the level set in the 1986 tax reform.
FORBES: Limited Mortgage, Charitable Tax Breaks Preserved In Deficit Panel Proposal
The number of federal individual income tax returns examined by the Internal Revenue Service has continuously increased over the past five years, with 1 out of every 90 taxpayers examined in fiscal year 2010, according to a statistical report released today by the Treasury Inspector General for Tax Administration.
The shareholders must then report the income or loss on their own individual income tax returns.
FORBES: Two Thirds of US Corporations Don't Pay Federal Income Tax: True But Horribly Misleading
Led by House Ways and Means Committee Chairman Dave Camp, our budget consolidates the current six individual income tax brackets into just two brackets of 10% and 25%.
Here, for 2008 (as reported by the IRS and calculated by Forbes) are the average effective individual income tax rates, as a percentage of adjusted gross income, for various income groups.
FORBES: If Newt Had His Way, Mitt Would Pay Closer To 0% Tax
应用推荐