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:
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—Graham Greene (1904–1991)
“But the tax collector, standing far off, would not even look up to heaven, but was beating his breast and saying, ‘God, be merciful to me, a sinner!’”
—Bible: New Testament, Luke 18:13.
“In the beginning was the word, the word
That from the solid bases of the light
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—Dylan Thomas (1914–1953)