The tax-to-GDP ratio is a measure of a country’s tax revenue relative to the size of its economy.
This ratio is used with other measures to determine how well a country’s government is channeling its economic resources through taxation.
Developed countries generally have higher tax-to-GDP ratios than developing countries.
Higher tax revenue means a country can spend more on improving infrastructure, health care and education, which is key to the long-term prospects for the country’s economy and population.
According to the World Bank, tax revenues in excess of 15% of a country’s gross domestic product (GDP) are a key driver of economic growth and, ultimately, poverty reduction.
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.
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.
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.