The marginal income tax rates kick in at high income levels

2017 ◽  
Keyword(s):  
Income Tax ◽  
High Income ◽  
Tax Rates ◽  
Income Levels

scholarly journals The Impact of Federal and State Income Taxes on Timber Income in the Northeast and Midwest Following the 1986 Tax Reform Act

1996 ◽  
Vol 13 (1) ◽  
pp. 8-15 ◽  
Author(s):  
William C. Siegel ◽  
Harry L. Haney ◽  
Daniel M. Peters ◽  
Pete Bettinger ◽  
Debra S. Callihan
Keyword(s):  
New Hampshire ◽  
Income Tax ◽  
Income Level ◽  
Income Taxes ◽  
The State ◽  
High Income ◽  
Tax Rate ◽  
Income Levels ◽  
State Income Tax ◽  
State Income

Abstract The structure and provisions of state income taxes are detailed for timber owners in 19 states of the Northeast and Midwest. Using 1994 federal and state income tax rules, the tax liability for a hypothetical married couple with timber sale income was calculated for two federal income tax rate brackets (medium and high income levels) for states in the Northeast and Midwest that impose an income tax. At the medium income level, the state portion of the total income tax liability ranged from 12.7% in Pennsylvania to 25.6% in Delaware. At the high income level, the state portion ranged from 11.1% in Pennsylvania to 24.9% in Minnesota. For both income levels, New Hampshire had the lowest state portion of the total tax liability when considering their business profits tax (12% for the medium and 7% for the high income level). The provision most significantly affecting state income tax liability was the tax rate schedule. Installment sales provide an alternative tax planning strategy for those timber owners who qualify as investors rather than a business and who are in the lowest federal tax bracket. Several states also impose taxes other than an income tax when timber is harvested. For example, Minnesota and New Hampshire both impose a minimum 10% yield tax on the timber's stumpage value. These levies significantly affect the total tax liability on harvest income. North. J. Appl. For. 13(1):8-15.

AWARENESS OF MARGINAL INCOME TAX RATES AMONG HIGH-INCOME TAXPAYERS

1965 ◽  
Vol 18 (3) ◽  
pp. 258-267 ◽  
Author(s):  
BRUCE L. GENSEMER ◽  
JANE A. LEAN ◽  
WILLIAM B. NEENAN
Keyword(s):  
Income Tax ◽  
High Income ◽  
Tax Rates ◽  
Income Taxpayers

The Impact of Federal and State Income Taxes on Timber Income in the South Following the 1986 Tax Reform Act

1989 ◽  
Vol 13 (4) ◽  
pp. 196-203 ◽  
Author(s):  
Pete Bettinger ◽  
Harry L. Haney ◽  
William C. Siegel
Keyword(s):  
North Carolina ◽  
Income Tax ◽  
Income Level ◽  
Income Taxes ◽  
The State ◽  
High Income ◽  
Tax Rates ◽  
Total Income ◽  
State Income ◽  
Timber Sale

Abstract The 1988 federal and state income tax liabilities for hypothetical forest landowners in two federal income tax brackets, each with and without timber sale revenue, were calculated for the 14 southern states. At the medium income level, the state portion of total income tax liability(without timber sale revenue) ranges from 9% in Louisiana to 20% in North Carolina. With timber sale revenue, it ranges from 7% in Louisiana to 17% in North Carolina. At the high income level, the state portion of total income taxes (without timber sale revenue) ranged from 7% in Louisianato 16% in North Carolina, and with timber sale revenue, from 6% in Louisiana to 15% in North Carolina. Capital gains exclusions, deductions for federal income taxes, tax rates and schedules, standard deductions, and personal exemptions are the most important provisions for reducing state incometax liability. The installment sale method of reporting income was used as one alternative tax planning strategy for spreading timber sale revenue over a 2-year period. The purpose was to smooth cash flows and reduce the amount of income subject to higher marginal tax rates. Georgia taxpayerselecting the installment sale method of reporting in a hypothetical case saved $1,203 and $585 in total income taxes for the medium and high income levels, respectively. South. J. Appl. For. 13(4):196-203.

Interregional Fiscal Equity and Benefit Transfers

1974 ◽  
Vol 2 (1) ◽  
pp. 25-42 ◽  
Author(s):  
Paul E. Smith
Keyword(s):  
State Government ◽  
Low Income ◽  
Income Tax ◽  
Transportation Problem ◽  
Minimum Cost ◽  
Revenue Sharing ◽  
High Income ◽  
Fiscal Equity ◽  
Tax Rates ◽  
Federal Income Tax

Over twenty years ago James M. Buchanan showed that serious horizontal inequities could exist in a federated system in the sense that residents of relatively low-income political subdivisions might receive lower benefits (net of taxes) from central and state government expenditures than people with the same income residing in high-income states. One possible solution offered was the imposition of discriminatory federal income tax rates with higher rates being charged in high-income states. This paper suggests an alternative solution in the form of federal transfers of benefits among states, either via conditional grants or revenue-sharing. The relative merits of the two approaches are discussed, and it is shown that the redistribution of benefits can be achieved at minimum cost by an application of the Hitchcock transportation problem.

The Impact of Federal and State Income Taxes on Timber Income in the West Following the 1986 Tax Reform Act

1991 ◽  
Vol 6 (1) ◽  
pp. 15-20
Author(s):  
Pete Bettinger ◽  
H. L. Haney ◽  
W. C. Siegel
Keyword(s):  
Income Tax ◽  
Income Level ◽  
The State ◽  
High Income ◽  
Income Levels ◽  
Planning Strategy ◽  
State Income Tax ◽  
State Income ◽  
Timber Sale ◽  
The Impact

Abstract Nineteen eighty-eight federal and state income tax liabilities for a hypothetical nonindustrial private forest landowner case were calculated for 13 western states. The state portion of the total income tax liability for the passive case (without timber sale revenue) ranged from 15% in Arizona, California, and Colorado to 25% in Hawaii for the medium income level. It ranged from 12% in Arizona and Colorado to 20% in Hawaii for the high income level. The state portion for the active case (with timber sale revenue) ranged from 12% in Arizona and Colorado to 21% in Hawaii, and from 10% in Arizona to 19% in Hawaii for the medium and high income levels, respectively. Federal income tax deductions, capital gain exclusions, and tax rates are the most important state provisions affecting state income tax liability. The installment sale method of reporting timber sale revenue was used as one alternative tax planning strategy. Timber sale revenue was spread over a 2-year period to reduce the amount of taxable income subject to higher marginal rates. In the Oregon hypothetical case, the landowners who elected to use the installment sale method would save $1,240 and $616 at the medium and high income levels, respectively. West. J. Appl. For. 6(1):15-20.

Bankgeheimnis und Verrechnungssteuer: Konsequenzen für die Steuerehrlichkeit in den Kantonen der Schweiz

2011 ◽  
Vol 12 (3) ◽  
pp. 258-279
Author(s):  
Manfred Gärtner
Keyword(s):  
Income Tax ◽  
Tax Rates ◽  
Capital Income ◽  
Tax Rate ◽  
Income Levels ◽  
Banking Secrecy ◽  
Income Distributions ◽  
Withholding Tax ◽  
Tax Payers

AbstractSwiss banking secrecy tempts foreigners to remain silent about capital incomes and, thus, not pay taxes as obliged by law, but residents of Switzerland as well. Therefore, Switzerland introduced a withholding tax on capital income in order to make domestic residents report levels of wealth and capital incomes properly. We ask whether a withholding tax rate of 35 percent achieves this goal. For this purpose, marginal income tax rates are computed and income distributions are estimated for each canton. From these we identify income levels and shares of tax payers for whom the withholding tax does not work as intended.

scholarly journals Sustainable Consumer Tax Evasion Theory under Information Inattention

2021 ◽  
Vol 13 (2) ◽  
pp. 562
Author(s):  
Bodo Herzog
Keyword(s):  
Public Policy ◽  
Tax Evasion ◽  
Detection Probability ◽  
Policy Instruments ◽  
Tax Rates ◽  
Policy Debate ◽  
Income Levels ◽  
Theory Of Information ◽  
Financial Penalty ◽  
Public Policy Debate

This article studies the renewed interest surrounding sustainable public finance and the topic of tax evasion as well as the new theory of information inattention. Extending a model of tax evasion with the notion of inattention reveals novel findings about policy instruments that can be used to mitigate tax evasion. We show that the attention parameters regarding tax rates, financial penalty schemes and income levels are as important as the level of the detection probability and the financial penalty incurred. Thus, our theory recommends the enhancement of sustainability in public policy, particularly in tax policy. Consequently, the paper contributes both to the academic and public policy debate.

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