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One thing some people may have heard of is "no income tax law." This phrase can actually refer to a few different kinds of law. First, it refers to the law of states that do not tax the income of their citizens. Secondly, it can also refer to Federal Laws that allow certain individuals to avoid paying federal income taxes.
Most states in the US charge a state income tax. This is done to help fund services provided by state governments to their citizens. However, not every state actually has a state income tax. Several don't. These states include Florida, Alaska, South Dakota, Nevada, Texas, Wyoming and Washington.
However, there are a few exceptions in these states. Sometimes corporations that reside in these states are still forced to pay state income taxes. This is the case in Florida. A few additional states only charge state income taxes on certain kinds of income. In Tennessee and New Hampshire, the state government only charges income taxes on income produced from either dividends or interest.
However, states that have no state income tax make up the revenue it other ways. Sometimes this is done through higher sales taxes. If the cost of living is high enough in a state, a high sales tax can more than make up for not having a state income tax. In other states without a state income tax, this lost revenue may be made up for with high property taxes. This is why a person should be educated on all taxes before moving to a new state.
In other cases, "no income tax law" may refer to laws that allow certain individuals to avoid paying federal income taxes. One of the largest groups of these people are those with no income or income so low that no income taxes are applied.
However, there are also cases in which individuals with significant levels of income can also avoid paying income taxes. This is due to specific deductions, tax credits and "loop holes" that exist within the tax code that can be taken advantage of. One such example is the earned income tax credit.
When this tax credit was introduced into the tax code, it resulted in an extra six percent of income tax filers not having to pay any income taxes at all. The percentage of people who file that don't have to pay income taxes also increased significantly when a child tax credit was introduced under the Bush administration.
What else can I help you with?
What law introduced a version of the modern income tax on personal earnings?
The 16th Amendment to the United States Constitution, ratified in 1913, introduced the modern income tax on personal earnings. This amendment granted Congress the power to levy an income tax without apportioning it among the states based on population.
What is the law on taxes on money made on Indian reservations?
Income generated on Indian reservations is generally exempt from federal income tax. However, state income taxes may still apply, depending on the specific laws of the state where the reservation is located. Additionally, income earned from sources outside the reservation is subject to federal income tax.
What is the meaning of TRAIN Law?
TRAIN Law stands for Tax Reform for Acceleration and Inclusion Law. It is a tax reform program implemented in the Philippines aimed at restructuring the country's tax system to make it more progressive, simpler, and fairer. It includes provisions for adjusting income tax brackets, expanding the value-added tax base, and imposing excise taxes on certain products.
If there is no law that says you have to pay income tax then why do you pay?
Yes. The Revenue Act of 1913, made under the power bestowed by the 16th Amendment. The current version is published as Title 26 of the United States Code, and as The Internal Revenue Code.
What law has been passed recently last 5 years?
One notable law passed within the last 5 years is the Tax Cuts and Jobs Act (2017), which made significant changes to the U.S. tax code, including reducing corporate tax rates and adjusting individual income tax brackets.
What has the author Barney McCoy Smith written?
Barney McCoy Smith has written: 'The Federal income tax law' -- subject(s): Income tax, Law and legislation, Popular works 'Understanding and using the Federal income tax law' -- subject(s): Income tax, Outlines, syllabi
What law became legal in 1913?
The law that was passed in 1913 which is the bane of Americans to this day was the legalization of INCOME TAX!!!!
What has the author Acharya Shuklendra written?
Acharya Shuklendra. has written: 'Law of income tax' -- subject(s): Income tax, Law and legislation
Where can information on income tax law be viewed?
There are various resources where one can view income tax law. Federal income tax law can be viewed at the official website for the IRS. For state tax laws, one can access their state's department of taxation or department of revenue website.
What has the author Cynthia Coleman written?
Cynthia Coleman has written: 'Australian tax analysis' -- subject(s): Income tax, Cases, Law and legislation 'Income tax analysis' -- subject(s): Income tax, Cases, Law and legislation
What is an individual income tax law?
Individual income tax law is based on an individual persons income. The tax is also based on family size.and certain expenses that might have happened over the last year.
What has the author Shri Ram Bhargava written?
Shri Ram Bhargava has written: 'All about penalties in income-tax & wealth-tax matters' -- subject(s): Income tax, Law and legislation, Wealth tax 'Income-tax pleadings, conveyancing, and practice' -- subject(s): Conveyancing, Income tax, Law and legislation
Who signed the first federal income tax law?
Abraham Lincoln signed the first Income Tax Law - 3% on incomes over $600.00
What has the author Joyce Stanley written?
Joyce Stanley has written: 'Federal income tax law' -- subject(s): Income tax, Law and legislation
What has the author S V Pikale written?
S. V. Pikale has written: 'The income tax law in India, with special reference to the Income tax act, 1961' -- subject(s): Income tax, Law and legislation
What has the author Reginald Sydney Walter Fordham written?
Reginald Sydney Walter Fordham has written: 'Canadian Income Tax Appeal Board practice' -- subject(s): Income tax, Law and legislation, Tax courts, Tax protests and appeals 'Income Tax Appeal Board practice' -- subject(s): Income tax, Law and legislation, Tax courts
Why should income tax be paid?
If a person meets the legal requirements to pay income tax and does not, he is in violation of the law.
