The duty is a tax that is levied on certain goods that are imported into or exported from a country. The amount of the duty is based on the value of the goods, and it is typically collected by the customs authorities when the goods are transported across the country’s borders. What is the difference … Read more
Tax arbitrage is the process of taking advantage of differences in tax laws in order to minimize the amount of taxes paid. This can be done by investing in assets that are taxed at a lower rate, or by taking advantage of tax breaks and incentives. For example, someone who lives in a state with … Read more
The term “ability to pay” refers to a person’s capacity to pay taxes. This capacity is determined by a number of factors, including the person’s income, assets, and liabilities. The ability to pay taxes is an important factor in determining the amount of taxes that a person is liable for. What is meant by fiscal … Read more
A solidarity tax is a tax levied in order to provide financial assistance to groups or individuals in need. The term is most often used in reference to taxes levied to support social welfare programs. Solidarity taxes may be imposed on individuals, businesses, or both. At what age can you start collecting Solidarity & GST … Read more
Double taxation occurs when the same income is taxed twice. This can happen when income is taxed at both the corporate level and the personal level. Double taxation can also happen when capital gains are taxed at both the state and federal level. Why does double taxation occur? There are a few reasons why double … Read more
The Harmonized Sales Tax (HST) is a value-added tax that is applied to most goods and services in Canada. The HST is a combination of the federal Goods and Services Tax (GST) and the provincial sales tax (PST). The HST is administered by the Canada Revenue Agency (CRA). The HST is calculated by adding the … Read more
The Protecting Americans From Tax Hikes (PATH) Act is a federal law that was enacted in 2015. The law made a number of changes to the tax code, including making the Child Tax Credit permanent, making the American Opportunity Tax Credit permanent, and creating a new tax credit for non-child dependents. The law also made … Read more
What is the Goods and Services Tax (GST)? The Goods and Services Tax (GST) is a value-added tax levied on most goods and services sold for domestic consumption. The GST is calculated as a percentage of the sale price of the good or service. What is GST with example? The Goods and Services Tax (GST) … Read more
A welfare loss occurs when a tax distorts economic activity in a way that leads to a decline in economic welfare. A tax can cause a welfare loss by discouraging work, investment, or entrepreneurship. A tax can also cause a welfare loss by distorting the allocation of resources in the economy. The welfare loss from … Read more
The tax-to-GDP ratio is the ratio of a country’s total tax revenue to its gross domestic product (GDP). The tax-to-GDP ratio is often used as a measure of the tax burden, as it indicates the percentage of a country’s GDP that is collected in taxes. In general, countries with a high tax-to-GDP ratio are seen … Read more
