Limiting state-local tax deductibility in exchange for increased general revenue sharing

an analysis of the economic effects
  • 98 Pages
  • 0.53 MB
  • English

U.S. G.P.O. , Washington
Revenue sharing -- United States., Intergovernmental tax relations -- United States., Local finance -- United States., Income tax deductions for taxes -- United St
Statementprepared for the Subcommittee on Intergovernmental Relations of the Committee on Governmental Affairs, United States Senate, by the Congressional Research Service, Library of Congress.
SeriesS. prt -- 98-77., S. prt -- 98-77.
ContributionsUnited States. Congress. Senate. Committee on Governmental Affairs. Subcommittee on Intergovernmental Relations., Library of Congress. Congressional Research Service.
The Physical Object
Paginationix, 98 p. :
ID Numbers
Open LibraryOL18036162M

Get this from a library. Limiting state-local tax deductibility in exchange for increased general revenue sharing: an analysis of the economic effects. [United States.

Congress. Senate. Committee on Governmental Affairs. Subcommittee on Intergovernmental Relations.; Library of Congress. Congressional Research Service.;]. Limiting state-local tax deductibility in exchange for increased general revenue sharing: An analysis of the economic effects.

Senate Print(). Limiting state-local tax deductibility: Effects among the states. ().Author: Lawrence Lindsey. More specifically, in states where federal deductibility implies a relatively low cost of using deductible personal taxes (including income,sales and property taxes), there is greater reliance on those taxes and less reliance on business taxes and other revenue effect of deductibility on the state-local financial mix implies that deductibility has a much lower cost Author: Martin Feldstein and Gilbert Metcalf.

Limiting state-local tax deductibility in exchange for increased general revenue sharing: An analysis of the economic effects. Measuring state jiscal capacity: Alternative methods and their uses.

Office of the President. Optimal state tax design. Optimal tax perturbations. ().Author: George Zodrow.

Under current law if a taxpayer itemizes, they are able to deduct the income taxes they paid to state and local governments. For instance, if a taxpayer had an AGI of $70, and paid $1, in taxes to their state and local governments (sales or income). The deduction for state and local taxes, including general sales taxes, if elected instead of income taxes, is limited to $10, ($5, if married filing separately).

See the Instructions for Schedule A (Form or SR) for more information. Since it relates tofor Federal income tax purposes the payment qualifies as a tax deduction for tax year False, the amount is deductible in T/F Individuals can elect to deduct their state income taxes, their local income taxes, and their sales/use taxes paid as an itemized deduction.

Limiting State-Local Tax Deductibility in Exchange for Increased General Revenue Sharing: An Analysis of the Economic Effects," Congressional Research Service, (). Limiting State-Local Tax Deductibility: Effects Among the States,"Author: Dick Netzer.

The state and local tax (SALT) deduction is one of the largest federal tax expenditures, with an estimated revenue cost of $95 billion in and $ billion over File Size: KB.

If the Treasury Department and the IRS were to allow taxpayers to claim a full charitable contribution deduction for contributions made in exchange for state tax credits, this treatment would result in significant federal tax revenue losses that would undermine the limitation on the deduction for state and local taxes in section (b)(6).

Description Limiting state-local tax deductibility in exchange for increased general revenue sharing PDF

The federal tax code allows individuals and businesses to make noncash contributions to qualifying charities and to claim deductions for these contributions on their tax returns. Gifts of donated property, clothing, and other noncash items have long been an important source of revenue for many charitable organizations and a popular deduction.

The deduction allows eligible taxpayers to deduct up to 20 percent of their qualified business income (QBI), plus 20 percent of qualified real estate investment trust (REIT) dividends and qualified publicly traded partnership (PTP) income.

Levy Limit: A legal limit on the amount of revenue raised by the property tax or on the rate of growth in property tax revenues. Assessment Limit: A legal limit on annual increases in assessed values that either freezes such values or ties such increases.

Effective for tax years beginning after 12/31/, a small business taxpayer is a taxpayer that (a) has average annual gross receipts of $25 million or less for the 3 prior tax years and (b) is not a tax shelter (as defined in section (d)(3)). See section (c) and section A(i).

To compute the foreign tax credit limitation, a taxpayer must determine its taxable income from foreign sources by allocating and apportioning deductions between items of U.S.-source gross income, on the one hand, and items of foreign-source gross income, on the other hand.

X THE DEDUCTIBILITY OF STATE AND LOCAL TAXES tax rates for the regular income tax, many taxpayers will move from the AMT back to the ordinary income tax— under which they are permitted to claim the state and local tax deduction.

Those shifts will further increase the revenue loss from the taxes-paid Size: 2MB. Business Expenses. Business expenses are expenses you have paid to run the business.

Some examples are CPF contributions, wages, renovation, advertising, etc. Business expenses may be deductible or non-deductible.

Download Limiting state-local tax deductibility in exchange for increased general revenue sharing EPUB

When deductible, they reduce your taxable income and the amount of tax you need to pay. Forthe TCJA changes the deal by limiting itemized deductions for personal state and local property taxes and personal state and local income taxes (or sales taxes if you choose that. Standard Deduction Amounts.

The standard deduction amounts will increase to $12, for individuals, $18, for heads of household, and $24, for married couples filing jointly and surviving Author: Kelly Phillips Erb. Income that is tax-deferred rather than exempt (such as a nonrecognized gain on a like-kind exchange) should not trigger a basis increase.

For example, in Rev.

Details Limiting state-local tax deductibility in exchange for increased general revenue sharing EPUB

Rul.C.B.a sale of property between two related partnerships for which a loss was disallowed under §(b)(1) was followed by the sale of the property to an. Less tax to deduct: The Tax Cuts and Jobs Act limits the itemized SALT deduction, which includes individual payments of state and local income and real estate taxes, to $10, per return.

That means some folks, especially those with high state income taxes and/or costly more-local property tax bills, now lose some of that deduction on their. Under the new tax law, her personal deduction is zero in and her standard deduction is $12, In this example, the single taxpayer has a larger deduction in Families are in a.


Use this lookup to access information about your fiscal year revenue sharing. Click on the drop down list and select your county. To find your county faster, type the first letter of the county name.

After you click GO, you will be prompted to select. - The Commissioner shall employ, assign, or reassign internal revenue officers involved in excise tax functions, as often as the exigencies of the revenue service may require, to establishments or places where articles subject to excise tax are produced or kept: Provided, That an internal revenue officer assigned to any such establishment shall.

Income tax is paid on money you receive, such as salary and wages, Centrelink payments, and investments. The amount of tax you pay depends on how much income you receive. You may be able to reduce the amount of tax you pay by claiming certain deductions.

Line - Donations and gifts Note: Line was line before tax year If you or your spouse or common-law partner made a gift of money or other property to certain institutions, you may be able to claim federal and provincial or territorial non-refundable tax credits when you file your income tax and benefit return.

Gross Production Tax: A state tax imposed on companies that generate revenues by depleting non-renewable resources. Such companies include producers of oil and gas, coal miners and miners of. Alabama was the least reliant on property tax revenue inwith only 10 percent of its combined state and local own-source general revenue coming from the tax.

Arkansas, Delaware, Hawaii, Kentucky, Louisiana, New Mexico, North Dakota, Oklahoma, and West Virginia also collected less than 15 percent of combined state and local revenue from.

The Georgia Department of Revenue is automatically extending income tax filing and payment deadlines to J Vehicle registrations that expire between Ma and J are being extended through J.

The CARES Act increases the interest deduction limit from 30% of adjusted taxable income to 50% of adjusted taxable income in and This temporary increase in the limitation provides some relief to owners of business aircraft.

(Taxpayers can elect out of this increased deduction limit.).pre-letting expenses, other than property fees before you first rented out the property. However certain pre-letting expenses on vacant residential property may be deductible. post-letting expenses. capital expenses on property improvements unless allowed under an incentive scheme.

expenses on premises rented out on an uneconomic basis, where. The tax reform enacted last month caps the deduction for state and local taxes, known as SALT, at $10, The limit on the state and local tax deduction should be the first step. you just end up paying the state/local tax on the federal tax, which is 10% of 20% = 2% in the example.

on January 2, at pm Limiting State And Local.