Credits For Alternative Tax Bases
Several tax systems impose a regular income tax and, where higher, an alternative tax. The U.S. imposes an alternative minimum tax based on an alternative measure of taxable income. Mexico imposes an IETU based on an alternative measure of taxable income. Italy imposes an alternative tax based on assets. In each case, where the alternative tax is higher than the regular tax, a credit is allowed against future regular tax for the excess. The credit is usually limited in a manner that prevents circularity in the calculation.
Read more about this topic: Tax Credit
Famous quotes containing the words alternative, tax and/or bases:
“Education must, then, be not only a transmission of culture but also a provider of alternative views of the world and a strengthener of the will to explore them.”
—Jerome S. Bruner (20th century)
“People buy their necessities in shops and have to pay dearly for them because they have to assist in paying for what is also on sale there but only rarely finds purchasers: the luxury and amusement goods. So it is that luxury continually imposes a tax on the simple people who have to do without it.”
—Friedrich Nietzsche (1844–1900)
“The bases for historical knowledge are not empirical facts but written texts, even if these texts masquerade in the guise of wars or revolutions.”
—Paul Deman (1919–1983)