Tax Incentives in the USA

Tax Incentives in the USA

Farms have huge benefits, thanks to which in a number of situations (especially in dry years) some companies reduce the tax base to zero.

After the “farm” incentives, much attention is also paid to the issue of preferential taxation of individual investors who invest in small innovative businesses.

The government’s interest in supporting them is obvious. So, for persons whose income tax rates are set at 28, 31, 36, 39.6%. The effective tax rate for capital gains is 14%.

For investors with a regular rate of 15%, the real rate is only 7.5%. The basic corporate tax rate is set at 34% and is paid according to the following scheme:

  • the corporation pays 15% for the first $50.000 of taxable income;
  • 25% – for the next $25.000;
  • over $75.000 – 34%.

In addition, an additional fee of 5% is imposed on incomes ranging from $100,000 to $335,000.

Graded taxation is extremely important for SMEs.

As for the income provided by social insurance tax receipts, they tend to grow. The combined rate for employees and employers is 15.3%.

Individuals pay taxes on inheritance and gift taxes at a rate of 18 to 55% (if the value of the property exceeds $600.000). Their share in the total volume of federal tax revenues is low (12%) and tends to decrease due to the increasing importance of this tax at the local level.

The structure of tax revenues of the 50 US states differs significantly from the federal one. Overall, its own revenues account for approximately 80% of total revenues, with the remaining 20% ​​being federal subsidies (grants).

The share of sales tax in the total amount of proceeds reaches 30-40%. The object of its taxation is the value of goods and services.

The state’s range tax rates are set by 48%. Personal income tax is levied in 44 states, in the rest it is “transferred” to local governments. Tax rates range from 2 to 10%; the objects of taxation with this tax differ. But for the purpose of unification and ease of use, most states calculate their rates as a certain percentage of the base federal tax.

At the same time, they have their own tax return form, and the amount of state tax paid is deducted when determining the obligations of subjects of taxation for federal tax.

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