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Home Dictionary H HM Revenue and Customs (HMRC) HRMC is the UK’s national tax authority. The agency manages all national direct and indirect taxes. In addition to tax compliance and revenue collection, HRMC manages certain benefits and tax credits paid out to UK residents. HRMC was formed in 2005 as a result of the merger of the Tax Administration and the Customs and Excise Administration. 501(c)
September 25, 2022 Section 501(c) of the Internal Revenue Code defines certain types of organizations as tax-exempt - they do not pay federal income tax. Ability-to-Pay Taxation
September 25, 2022 The principle of ability to pay states that those who are more able to pay taxes, measured by income and wealth, should pay more. Double Taxation
September 25, 2022 Double taxation means that income tax is paid twice from the same source of income. Economic Recovery Tax Act of 1981 (ERTA)
September 25, 2022 The Recovery Tax Act of 1981, signed into law by Ronald Reagan during his first year in office, was the largest tax cut in US history. Foreign Account Tax Compliance Act (FATCA)
September 25, 2022 The Foreign Account Taxation Act (FATCA) requires US citizens to file annual returns on any foreign accounts and pay any taxes due on them in order to curb tax evasion. Free Trade
September 25, 2022 Free trade agreements reduce or remove barriers to trade across international borders. Generation-Skipping Transfer Tax (GSTT)
September 25, 2022 Generation Skip Transfer Tax (GSTT) is a federal tax that arises when property is transferred by gift or inheritance to a beneficiary (other than spouse) who is at least 37.5 years younger than the donor. Goods and Services Tax (GST)
September 25, 2022 Goods and Services Tax (GST) is a tax on goods and services sold domestically for consumption. Harmonized Sales Tax (HST)
September 25, 2022 The Harmonized Sales Tax (HST) is a combination of federal and provincial taxes on goods and services in Canada’s five provinces. Kiddie Tax
September 25, 2022 The child tax prevents parents from avoiding taxes by donating large shares. PATH Act
September 25, 2022 The Protect Americans from Tax Increases Act of 2015 extended approximately 50 tax breaks for individuals and businesses. Pump Priming
September 25, 2022 Pumping refers to steps taken to stimulate spending in an economy during or after a recession. Regressive Tax
September 25, 2022 A regressive tax is a type of tax that is assessed regardless of income, in which low- and high-income individuals pay the same dollar amount. Section 1250
September 25, 2022 Section 1250 of the Internal Revenue Code states that the IRS will tax income from the sale of depreciated real estate as ordinary income if accumulated depreciation exceeds straight-line depreciation. Tax Equity and Fiscal Responsibility Act of 1982 (TEFRA)
September 25, 2022 The Fair Taxation and Accountability Act of 1982 was the largest tax increase in US history adjusted for inflation. Tax Lien
September 25, 2022 If the taxpayer does not respond to a demand for payment, the government may seize the person’s assets. Tax Reform Act of 1986
September 25, 2022 The Tax Reform Act of 1986 was a comprehensive tax reform law that was passed by President Ronald Reagan. Tax-Advantaged
September 25, 2022 Tax incentives refer to the favorable tax status enjoyed by certain qualifying investments, accounts or other financial instruments. Tax-to-GDP Ratio
September 25, 2022 The tax-to-GDP ratio is a measure of a country’s tax revenue relative to the size of its economy. Taxation
September 25, 2022 Taxation occurs when a government or other body requires citizens and corporations to pay a contribution to that body. Tobacco Tax/Cigarette Tax
September 25, 2022 A tobacco tax or cigarette tax is a tax levied on tobacco products for the government’s purpose of reducing tobacco use and its associated harms. Value-Added Tax (VAT)
September 25, 2022 Value Added Tax, or VAT, is added to a product at every point in the supply chain where value is added to it. Welfare Loss Of Taxation
September 25, 2022 The welfare loss from taxation is the total cost imposed on society by the imposition of a new tax. Windfall Tax
September 25, 2022 A windfall tax is an additional tax levied by governments on businesses or sectors of the economy that have benefited from economic growth. 2011 U.S. Debt Ceiling Crisis
September 25, 2022 The 2011 US debt ceiling crisis was one of a series of recurring debates over the increase in the overall size of the US government debt.