Double Taxation
Double taxation still occurs within these tax-sheltered investment arrangements. For example, foreign dividends may be taxed at their point of origin, and the IRS does not recognize this tax as a creditable deduction. There is some controversy over whether this violates tax treaties, such as the Convention Between Canada and the United States of America With Respect to Taxes on Income and on Capital.
Read more about this topic: Individual Retirement Account
Famous quotes containing the words double and/or taxation:
“You spotted snakes with double tongue,
Thorny hedgehogs, be not seen.
Newts and blindworms, do no wrong,
Come not near our Fairy Queen.”
—William Shakespeare (1564–1616)
“The Government is able to afford a suitable army and a suitable navy. It may maintain them without the slightest danger to the Republic or the cause of free institutions, and fear of additional taxation ought not to change a proper policy in this regard.”
—William Howard Taft (1857–1930)