And Britain is also well ahead of the United States, where the current top rate of federal income tax is 35%, though additional state levies can add substantially more.
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The plan starts with giving Americans a choice between a new, flat tax rate of 20% or their current income tax rate.
Regarding current debate about the 50p top rate of income tax, he said it was difficult to tell at present whether this was bringing in more income for the government.
Alternatively, the proposal would tax certain intangible property related income on a current basis at a rate of 15%, whether derived directly by a U.S. corporation or by a foreign subsidiary.
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Investments grow tax deferred, and withdrawals are taxed at ordinary income rates, with a current top federal rate of 35%.
Taxing capital income at a permanent average rate of 20% instead of the current average of 37% would yield substantial benefits.
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The main component of the current fiscal cliff squabbling, the income border beyond which the tax rate will increase, is clearly not a middle class issue.
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In the absence of Congressional action, the current rate will expire, and the dividend rate will revert to ordinary income tax rates.
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Dividend income would be taxed as ordinary income, subject to the maximum rate of 39.6%, up from the current maximum rate of 15% for qualified dividends (plus the Obamacare surtax as referenced below).
Chidambaram, while announcing the federal budget for the financial year starting April 1, proposed a so-called surcharge that would push the effective income-tax rate for a select group of taxpayers to about 34% from the current 30.9%, according to tax experts.
Upon the ultimate sale of the property, basis-adjusted profit is taxed at the current capital gains rate, typically lower than income tax.
Ms Farrell notes that, if the Turkish government managed to collect 90% of its value-added-tax revenues instead of the current 64%, it could lower the tax rate from 18% to 13% without sacrificing any income.
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