A report on Tax and Income tax

Total revenue from direct and indirect taxes given as share of GDP in 2017
Top marginal tax rate of the income tax (i.e. the maximum rate of taxation applied to the highest part of income)
Pieter Brueghel the Younger, The tax collector's office, 1640
William Pitt the Younger introduced a progressive income tax in 1798.
Substitution effect and income effect with a taxation on y good.
Punch cartoon (1907); illustrates the unpopularity amongst Punch readers of a proposed 1907 income tax by the Labour Party in the United Kingdom.
Budget's constraint shift after an introduction of a lump sum tax or a general tax on consumption or a proportional income tax.
General government revenue, in % of GDP, from personal income taxes. For this data, the variance of GDP per capita with purchasing power parity (PPP) is explained in 27 % by tax revenue
The Laffer curve. In this case, the critical point is at a tax rate of 70%. Revenue increases until this peak, then it starts decreasing.
Systems of taxation on personal income
General government revenue, in % of GDP, from social contributions. For this data, the variance of GDP per capita with purchasing power parity (PPP) is explained in 20% by social contributions revenue.
Payroll and income tax by OECD Country
Egyptian peasants seized for non-payment of taxes. (Pyramid Age)
Public finance revenue from taxes in % of GDP. For this data, the variance of GDP per capita with purchasing power parity (PPP) is explained in 32% by tax revenue.
Diagram illustrating deadweight costs of taxes

An income tax is a tax imposed on individuals or entities (taxpayers) in respect of the income or profits earned by them (commonly called taxable income).

- Income tax

Most countries charge a tax on an individual's income as well as on corporate income.

- Tax
Total revenue from direct and indirect taxes given as share of GDP in 2017

6 related topics with Alpha

Overall

Average tax rates by income groups in France, the United Kingdom, and the United States, 1970 (left) and 2005 (right). Taxes were more progressive in 1970 than in 2005.

Progressive tax

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Average tax rates by income groups in France, the United Kingdom, and the United States, 1970 (left) and 2005 (right). Taxes were more progressive in 1970 than in 2005.
A caricature of William Pitt the Younger collecting the newly introduced income tax.
German marginal and average income tax rates display a progressive structure.
"Tax The Rich" banner at an International Union of Socialist Youth campaign for a financial transaction tax.
The function which defines the progressive approach to an income tax, may be mathematically defined as a piecewise function. In every piece (tax bracket), it must be computed cumulatively, considering the taxes which had already been computed to the previous tax brackets. Pictured is the effective income tax for Portugal in 2012 and 2013.
Distribution of US federal taxes from 1979 to 2013, based on CBO Estimates.

A progressive tax is a tax in which the tax rate increases as the taxable amount increases.

The term is frequently applied in reference to personal income taxes, in which people with lower income pay a lower percentage of that income in tax than do those with higher income.

Flat tax

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A flat tax (short for flat-rate tax) is a tax with a single rate on the taxable amount, after accounting for any deductions or exemptions from the tax base.

A flat tax system is usually discussed in the context of an income tax, where progressivity is common, but it may also apply to taxes on consumption, property or transfers.

Taxable income

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Taxable income refers to the base upon which an income tax system imposes tax.

The Tithe Pig, group in Derby Porcelain, c. 1770

Tithe

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The Tithe Pig, group in Derby Porcelain, c. 1770
Tithing in the Temple by Pierre Monier
A collection bag used in the Lutheran Church of Sweden to collect a portion of ones' tithes during the offertory
Public notice in England demanding tithe payments, 1837
Part of an 1842 tithe map including the small village of East Dundry near Bristol, England, with names of its fields and two farms. Note the tithe-officer signature and stamp near the top.
Tithe map for the property
Elmsett tithe memorial in Suffolk, England, opposite the parish church, protesting against a tithe seizure
The first page of chapter 28 of Besse's 'Collection of Sufferings', covering Herefordshire
Paragraph on prosecutions for non-payment of tithes in Herefordshire, 1674 (from page 258 of Besse's 'Sufferings of Quakers')
Casa de los Diezmos, Canillas de Aceituno, Málaga, Spain
The Village Lawyer or The Tax Collector's Office by Pieter Brueghel the Younger
The Tithe Barn, Abbotsbury, Dorset (scene of the sheep-shearing in Thomas Hardy's Far from the Madding Crowd)
Tithe barn at Bradford on Avon, West Wiltshire
Interior of the medieval tithe barn at Pilton, Somerset
Coggeshall near Braintree, Essex; the timber has been dated to between 1130 and 1270.

A tithe (from Old English: teogoþa "tenth") is a one-tenth part of something, paid as a contribution to a religious organization or compulsory tax to government.

Under this law Italian taxpayers are able to vote how to partition the 0.8% ('eight per thousand') of the total income tax IRPEF levied by Italy among some specific religious confessions or, alternatively, to a social assistance program run by the Italian State.

Avoiding the window tax in England

Tax avoidance

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Avoiding the window tax in England
Countries with politicians, public officials or close associates implicated in the Panama Papers leak on 15 April 2016

Tax avoidance is the legal usage of the tax regime in a single territory to one's own advantage to reduce the amount of tax that is payable by means that are within the law.

Also income tax would still be due on any salary or dividend drawn from the legal entity.

Public sector workers in Leeds striking over pension changes by the government in November 2011

Pension

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Fund into which a sum of money is added during an employee's employment years and from which payments are drawn to support the person's retirement from work in the form of periodic payments.

Fund into which a sum of money is added during an employee's employment years and from which payments are drawn to support the person's retirement from work in the form of periodic payments.

Public sector workers in Leeds striking over pension changes by the government in November 2011
2018 Russian pension protests
First pillar of pension system by country:
Basic non-contributory pension
Mandatory individual accounts
Provident fund system
Workers can switch between social insurance system or individual accounts
Social insurance system

Occupational pensions are a form of deferred compensation, usually advantageous to employee and employer for tax reasons.

Finally, in the short term, the public finance balance increases but is quickly limited (but remains an increase) with the decrease of revenues from VAT and income taxes and the increase of unemployment.