by T. R. Reid
explanation of, 76–79, 250
in New Zealand, 59–60, 62
and tax complexity, 40–41, 48, 55, 225
See also specific types
tax preparers, 6–7, 213, 215, 217, 219, 223–24, 252
tax rate
inequality in, 70, 123, 254
top, 82–83, 85–86, 107, 160
top marginal, 17–18, 59–60, 67–70, 76, 124
See also broad base, low rates (BBLR); flat-rate income tax
tax reform, 2, 61, 66–68, 91, 211–12
and BBLR, 56–58, 125, 218–19, 251–52, 255
fair type of, 95–96
of George W. Bush, 56, 88, 132
in New Zealand, 57–63, 65, 69, 251
of 1986, 10, 12, 85–86, 250–51, 254, 257
by rewriting code, 250–51, 255–57
in Slovakia, 107–8, 112–13
in U.S., 8, 12, 63–70, 73–74, 125, 241–48
and VAT, 229, 241–48, 255
Tax Reform Act of 1984, 64
Tax Reform Act of 1986, 12, 68–70, 85–86
tax revenue. See specific countries; specific taxes
tax systems, 27, 53–54, 213, 221
best examples of, 57–63, 73, 106, 251
complexity of, 5, 9, 26, 40, 48, 55, 64, 68, 224, 229, 237, 257
cost of, 214–15, 238
efficiency of, 3, 241–42
fair, 3, 28, 46, 55, 111, 114, 125–26, 229, 237, 253
goals of, 36, 41, 44, 46
simplifying of, 2–3, 7, 56, 61, 79, 97–100, 105, 107, 256
successful, 2–3, 7–8, 28, 51–52, 126–27, 218, 251–52, 256
unified, 107–8, 228
Tea Party, 85
technological advances, 49, 105
terrorism, 187
Thuronyi, Victor, 158
timber, 34, 59–60, 80, 131, 164
Times (London), 119
“tiny tax,” 180–85
tobacco tax, 17, 21, 37–38, 40, 176
Tobin tax, 180–83
Tokyo, Japan, 7, 25, 30, 187
Toscana, David, 177
transfer tax, 130
Treasury I (tax reform), 65–66
Trump, Donald, 12, 98–100, 117, 138, 158, 166, 253–54
trusts, 6, 216
Tsipras, Alexis, 47
Turkey, 15, 20
Tyco International, 156
Uganda, 47
U.K. Office of Tax Simplification (OTS), 220–21
Ukraine, 109
Ullman, Al, 245
Underwood-Simmons Tariff Act (1913), 1
unemployment, 42, 107–8, 114, 116, 127
Union des Associations Internationales, 50
United Arab Emirates (U.A.E.), 191–92, 194
United Kingdom/Great Britain, 15, 17, 20, 22, 31, 35, 49, 50, 57, 77, 96, 121, 131, 146, 157, 179, 200, 243, 255
charitable donations in, 40–41, 221
inequalities in, 119, 122
media of, 198–99
mortgage deduction eliminated by, 90–91
simple returns of, 7, 220–21
and tax avoidance, 159, 166–67
tax breaks in, 78, 80, 90–91
tax bureau in, 24–25, 220–21
tax on stock trades, 181, 183–84
tax rates of, 10, 19, 166–67
tax reform in, 69–70, 90–91
VAT rates of, 41–42, 235, 240, 247
United Nations, 34, 49
University of Tartu, 103–4, 113
Uruguay, 39
U.S. Congress, 7, 42, 80, 99, 113, 181, 194
accounting arm of, 147–48
and capital gains tax, 137–39
charities law of, 84–85
and corporate money, 63, 144
and corporate taxes, 165–66, 168–69
IRS berated by, 26, 161, 209–10
and pre-filled tax forms, 223–24
and tax breaks, 9–10, 56–57, 65, 71–76, 78, 89, 250–52
and tax code reform, 8–9, 12, 64–70
on tax complexity, 5, 26, 219, 249
and tax-ducking inversions, 161–62
tax evaders investigated by, 149–51, 154, 162–63
tax law written by, 1–3, 10, 45–46, 74, 209–13, 245, 252
See also bailouts; political contributions; U.S. House of Representatives; U.S. Senate
U.S. Constitution, 46
U.S. Customs House, 35
U.S. House of Representatives, 64, 67–68, 74, 245
U.S. Justice Department, 201, 205–7
U.S. Mint, 33
U.S. Senate, 1, 66–68, 74, 77–78, 150, 154, 162, 245
U.S. Supreme Court, 30–32, 46, 123, 161
U.S. Treasury Department, 5, 78, 159, 182
on lowering tax rates, 251–52
secretaries of, 65–66, 161, 211, 248, 250
and tax breaks, 71–72, 80–81
and tax-ducking inversions, 157, 161–62
and tax expenditures, 75, 87–88
and tax policy, 245–46
and tax reform, 65–66, 250
value-added tax (VAT), 10, 19, 25, 110, 194
explanation of, 228–38, 241–46
raising rates of, 41–42, 111, 114
standard rates of, 183–84, 238–40
and U.S., 11–12, 229–30, 241–48, 254–55
See also goods and services tax (GST)
Vano, Vladimir, 106
Walgreens, 157–58
Wall Street, 10, 65, 70, 180–81, 184, 255
Wall Street Journal, 109, 119, 162–63, 169, 184, 190–91, 199, 205, 236–37
Wandell, Keith, 156
War of 1812, 34–35
Warren, Elizabeth, 117, 223, 253
Washington, D.C., 30, 69, 84–85, 120, 131, 136, 156, 169, 184, 198–99, 224
Washington Post, 116
water (safe, drinking), 39, 177–79
wealth, 110
wealth tax, 17, 124–25, 128–32, 173, 183, 192–93
See also gross domestic product (GDP); inequality, economic; rich, the; superrich, the
Wealth of Nations, The (Smith), 37
Wegelin & Co. (Switzerland), 205–6
welfare state, 80
widow’s mite, 27–28, 135
Wilson, Woodrow, 1
World Bank, 16–17, 23–24, 50–52, 57, 77, 126, 182
World Health Organization, 49, 176
world wars, 1, 50, 106, 121, 228
Zolt, Eric, 12
* See the “Tax Computation Worksheet” on p. 89 of the IRS publication 1040 Instructions 2015. Readers who are quick at math will realize that this tax bill, $145,646, is not 39.6% of the couple’s $500,000 income. That’s because the top rate only applies to earnings over $450,000; most of the couple’s income is taxed at lower rates.
* See the 2015 Tax Tables on pp. 77–89 of the IRS publication 1040 Instructions 2015.
* Note: the employee also pays Medicaid tax.
* The correct answer (the fake instruction) is c.
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