The Optimal Taxation of Interest Income
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The Optimal Taxation of Interest Income A Comparative View of Interest Taxation in Germany, the Netherlands, Switzerland and the United States (Leuven Law Series , No 4) by Jacqueline C. Hess-Ingrassia

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Published by Coronet Books Inc .
Written in English


  • Germany,
  • Netherlands,
  • Switzerland,
  • USA,
  • Taxation,
  • Business/Economics

Book details:

The Physical Object
Number of Pages81
ID Numbers
Open LibraryOL12846909M
ISBN 10906186691X
ISBN 109789061866916

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The income that your business earns from its savings accounts, certificates of deposits, or other investment vehicles is called interest income. As the bookkeeper, you’re rarely required to calculate interest income using the simple interest or compounded interest formulas described in the earlier sections of this chapter. In most cases, the financial institution sends you [ ].   Interest income is the amount of interest that has been earned during a specific time period. This amount can be compared to the investments balance to estimate the return on investment that a business is generating. The amount of interest may have been paid in cash, or it may have been accrued as having been earned but not yet paid. In the latter case, interest income should only be . This statement outlines the amount of taxable interest income earned on the financial assets held at the bank and is used to prepare tax returns. It’s important to note that there are two sides to each interest transaction. Your business receives an interest payment. Thus, it recognizes income on its books. The bank sends and interest payment.   Arm yourself with your W-2 filings and any other sources of income before you crack open this book then start saving money at the turn of each page. Newly updated to cover recent changes to the tax law, " Deductions" also features an online supplement that provides up to date information on the newest legal developments in the tax code.

optimal taxation. There is also a short review of the history of taxation and tax policy, discussion of the current state of the literature on optimal taxation and finally, a summary of the essays. On the concept of optimal taxation A phrase ‘optimal taxation’ imposes high demands on the research. Has. This book is a basic income tax text. I intend this text to be suitable for a three-hour course for a class comprised of law students with widely different back- tax – but who may find that they in fact have a considerable interest in tax law. With my political science background, I was such a student. I . The property tax has the best economy in collection: the owner is sent a bill, and pays it. Simplicity: taxpayers should be able to easily understand the rules and comply with them. Income taxes fail, as many taxpayers hire professional preparers to do their taxes, and firms hire tax accountants. Tax software involves rules difficult to understand. A. Woodland, in Handbook of the Economics of Population Aging, The Taxation of Capital Income. An important strand of the literature on optimal taxation in dynamic economies concerns the proposition that the income tax rate on income from capital should be zero. This proposition was initiated by Judd (), who considered a closed economy producing a single product that could be.

The achievements and limitations of the classical theory of optimal labor-income taxa-tion based on social welfare functions are now well known. Even though utilitarianism still dominates public economics, recent interest has arisen for broadening the norma-tive approach and making room for fairness principles such as desert or responsibility. The income that your business earns from its savings accounts, certificates of deposits, or other investment vehicles is called interest income. A bookkeeper is rarely required to calculate interest income using simple interest or compound interest formulas. The financial institution usually sends you a monthly, quarterly, or annual statement that has a separate line item [ ]. The theory of optimal taxation has, for the pas two decades, been the reigning normative approach of taxation. This paper argues that, in its current state, optimal tax theory is incomplete as a guide to action concerning many critical issues in tax policy.   You'll report interest income in different places when it comes time to file your tax return, depending on the type of interest you earned. Taxable interest goes on Schedule B of the Form You would then enter the total from Schedule B on line 10b of your Form