scholarly journals Federal Income Tax: Deductibility of State Income Taxes as a Business Expense for Individuals in Computing Net Operating Loss

1961 ◽  
Vol 1961 (3) ◽  
pp. 467
Keyword(s):  
Income Tax ◽  
Income Taxes ◽  
Federal Income Tax ◽  
State Income ◽  
Business Expense

A STUDY OF THE IMPACT OF SPECIAL INTEREST GROUPS ON MAJOR TAX REFORM: AGRICULTURE AND THE 1913 INCOME TAX LAW

2008 ◽  
Vol 35 (2) ◽  
pp. 71-100 ◽  
Author(s):  
Douglas K. Barney ◽  
Tonya K. Flesher
Keyword(s):  
Quantitative Analysis ◽  
Income Tax ◽  
Income Taxes ◽  
Tax Law ◽  
Special Interest Groups ◽  
Congressional Debates ◽  
Farm Population ◽  
Income Tax Law ◽  
State Income ◽  
The Impact

Farmers have benefited from unique tax treatment since the beginning of the income tax law. This paper explores agricultural influences on the passage of the income tax in 1913, using both qualitative and quantitative analysis. The results show that agricultural interests were influential in the development and passage of tax/tariff laws. The percentage of congressmen with agricultural ties explains the strong affection for agriculture. Discussion in congressional debates and in agricultural journals was passionate and patriotic in support of equity for farmers. The quantitative analysis reveals that the percentage farm population was a significant predictor of passage of the 16th Amendment by the states and of adoption of state income taxes in the 20th century.

scholarly journals The Impact of Federal and State Income Tax Liabilities on Timber Investments in the Midwest and Northeast

2007 ◽  
Vol 24 (4) ◽  
pp. 245-251 ◽  
Author(s):  
Nathan R. Smith ◽  
Philip Bailey ◽  
Harry Haney ◽  
Debra Salbador ◽  
John Greene
Keyword(s):  
Income Tax ◽  
Tax Planning ◽  
Income Taxes ◽  
Forest Landowners ◽  
Middle Income ◽  
State Tax ◽  
State Income Tax ◽  
State Income ◽  
Lower Peninsula ◽  
The Impact

Abstract Federal and state income taxes are calculated for hypothetical forest landowners in two income brackets across 23 states in the Midwest and Northeast to illustrate the effects of differential state tax treatment. The income tax liability is calculated in a year in which the timber owners harvest $200,000 worth of timber. State income taxes ranged from highs of $13,427 for middle-income landowners and $18,527 for high-income landowners in Maine to no tax burden in New Hampshire and South Dakota. Calculated state and federal income taxes are based on 2004 tax regulations and rates. After-tax land expectation values calculated for a forest landowner in the Northern Lower Peninsula of Michigan illustrate the importance of tax planning on returns to a timber investment. The results support the need for adequate tax accounting.

scholarly journals The Impact of Federal and State Income Tax Liabilities on Timber Investments in the West

2008 ◽  
Vol 23 (2) ◽  
pp. 121-126
Author(s):  
Nathan R. Smith ◽  
Phillip Bailey ◽  
Harry Haney ◽  
Debra Salbador ◽  
John Greene
Keyword(s):  
Income Tax ◽  
Tax Planning ◽  
Income Taxes ◽  
The West ◽  
Forest Landowners ◽  
Middle Income ◽  
State Tax ◽  
State Income Tax ◽  
State Income ◽  
The Impact

Abstract Federal and state income taxes are calculated for hypothetical forest landowners in two income brackets across 13 states in the West to illustrate the effects of differential state tax treatment. The income tax liability is calculated in a year in which the timber owners harvest $200,000 worth of timber. State income taxes range from highs of $19,693 for middle-income and $34,993 for high-income landowners in Oregon to no income tax in Alaska, Nevada, Washington and Wyoming. After-tax land expectation values for a forest landowner in Oregon are also calculated to illustrate the importance of tax planning on returns to a timber investment. The need for adequate tax accounting is supported by the results.

scholarly journals The Impact of Federal and State Income Taxes on Timber Income in the Northeast and Midwest Following the 1986 Tax Reform Act

1996 ◽  
Vol 13 (1) ◽  
pp. 8-15 ◽  
Author(s):  
William C. Siegel ◽  
Harry L. Haney ◽  
Daniel M. Peters ◽  
Pete Bettinger ◽  
Debra S. Callihan
Keyword(s):  
New Hampshire ◽  
Income Tax ◽  
Income Level ◽  
Income Taxes ◽  
The State ◽  
High Income ◽  
Tax Rate ◽  
Income Levels ◽  
State Income Tax ◽  
State Income

Abstract The structure and provisions of state income taxes are detailed for timber owners in 19 states of the Northeast and Midwest. Using 1994 federal and state income tax rules, the tax liability for a hypothetical married couple with timber sale income was calculated for two federal income tax rate brackets (medium and high income levels) for states in the Northeast and Midwest that impose an income tax. At the medium income level, the state portion of the total income tax liability ranged from 12.7% in Pennsylvania to 25.6% in Delaware. At the high income level, the state portion ranged from 11.1% in Pennsylvania to 24.9% in Minnesota. For both income levels, New Hampshire had the lowest state portion of the total tax liability when considering their business profits tax (12% for the medium and 7% for the high income level). The provision most significantly affecting state income tax liability was the tax rate schedule. Installment sales provide an alternative tax planning strategy for those timber owners who qualify as investors rather than a business and who are in the lowest federal tax bracket. Several states also impose taxes other than an income tax when timber is harvested. For example, Minnesota and New Hampshire both impose a minimum 10% yield tax on the timber's stumpage value. These levies significantly affect the total tax liability on harvest income. North. J. Appl. For. 13(1):8-15.

Is There a December Effect? Strategic Prepayments of Deductible State Income Tax

2010 ◽  
Vol 32 (2) ◽  
pp. 53-71
Author(s):  
John Shon ◽  
Stanley Veliotis
Keyword(s):  
Income Tax ◽  
Time Value Of Money ◽  
State Income Tax ◽  
Federal Income Tax ◽  
State Income ◽  
Tax Savings ◽  
Tax Payments ◽  
One Year ◽  
The Cost ◽  
Value Of Money

ABSTRACT: Individuals’ state income tax payments are deductible in the year paid for federal income tax purposes. This study investigates whether, and to what extent, individuals implement federal tax planning by prepaying state estimated income taxes before year-end, even though those payments are not due until January 15. Based on a study of 34 states’ aggregate data on estimated income tax receipts from individuals, we find strong evidence of this effect. We also find that this effect is increasing with the cost of state income tax payments. The results suggest that individual taxpayers take steps to reduce taxes by shifting deductions from one year to an earlier year and/or exploit the time value of money provided by accelerating federal tax savings by one year.

scholarly journals The Jock Tax Contest: Professional Athletes Vs. The States - Background And Current Developments

2011 ◽  
Vol 20 (2) ◽  
Author(s):  
Elizabeth C. Ekmekjian ◽  
James C. Wilkerson ◽  
Robert W. Bing
Keyword(s):  
New York ◽  
Income Tax ◽  
Major League Baseball ◽  
Income Taxes ◽  
The State ◽  
Income Taxation ◽  
Professional Athletes ◽  
Baseball Player ◽  
National Anthem ◽  
State Income

Opening day of the Major League Baseball‟s 2<span>002 season fell on April 1 of that year. After the National Anthem was sung, the crowd applauded as the New York Mets took the field, and the umpire yelled, “play ball.” The State of New York also cheered. Why? New York, like a number of other states and localities, imposes an income tax on athletes that visit its borders. So, when Tex- as Rangers shortstop, Alex Rodriguez, the highest paid baseball player during the 2002 season with a salary of $22 million, played 4 regular season games in the Big Apple, he incurred a tax liability of approximately $34,250. This state income taxation of nonresident professional athletes is commonly referred to as “the jock tax.” This paper introduces the reader to the jock tax beginning with a brief explanation of state income taxes, continuing with a discussion of its complexi- ties and historical/current issues faced by athletes, teams and the states through implementation of the tax. The paper concludes with the broader implications of a state or local taxing jurisdiction's powers to tax its nonresident visitors. </span>

Who Wants to Raise Taxes?

2020 ◽  
pp. 106591292097791
Author(s):  
Todd Donovan ◽  
Shaun Bowler
Keyword(s):  
Income Tax ◽  
Public Attitudes ◽  
State Level ◽  
Income Taxes ◽  
Sales Tax ◽  
State Budget ◽  
Individual Level ◽  
Self Interest ◽  
State Income ◽  
Spending Cuts

We test hypotheses about individual-level (partisanship and self-interest) and state-level (tax policy) factors that may shape public attitudes about raising taxes. Respondents were given a scenario where a state budget needed to be balanced with spending cuts or tax increases, and a scenario where either state sales or state income taxes would be increased. We find partisanship, ideology, and self-interest had substantial relationships with how people responded. Democrats, liberals, and those with fewer resources preferred tax increases over spending cuts, and preferred income tax increases over sales tax increases. Republicans (particularly wealthy Republicans), conservatives, and those with more resources preferred spending cuts to tax increases, and preferred sales tax increases over income tax increases. We also find income tax increases and higher tax burdens may correspond with preferences for cutting spending rather than raising taxes, but variation in the rates of a particular tax was not associated with attitudes about raising that tax. Our results suggest an electorate that may be somewhat more sophisticated about fiscal policy than what has been portrayed in several influential studies.

scholarly journals The Use Of Regression Analysis As Evidence In Litigating Tax-Related Issues

2011 ◽  
Vol 12 (3) ◽  
pp. 97
Author(s):  
B. Anthony Billings ◽  
D. Larry Crumbley
Keyword(s):  
Regression Analysis ◽  
Income Tax ◽  
Property Taxes ◽  
Court Decisions ◽  
Legal Analysis ◽  
State Income Tax ◽  
Tax State ◽  
Federal Income Tax ◽  
State Income

<span>Despite numerous published academic articles concerning the application of regression analysis as an accounting tool, its applicability as a tool in litigating tax matters has been largely ignored. This research documents the extent to which regression analysis has been used to adjudicate tax issues and points out conditions under which regression-based conclusions are considered legitimate evidence. A number of court decisions regarding federal income tax, state income tax and property taxes are reviewed to illustrate the extent to which regression analysis has been applied, its effectiveness, and implications for future adjudication of tax issues. Evidence from the reviewed court decisions indicates that regression analysis may be successfully used to uncover relevant facts, estimates or projections. However, the credibility of such evidence will depend on the observance of the underlying regression analysis assumptions and on the experts understanding of the phenomenon under study. The use of regression analysis to conduct legal analysis (for example, predicting the outcome of litigation) is of little utility in the courtroom.</span>

THE NINETEENTH CENTURY INCOME TAX IN THE SOUTH

1985 ◽  
Vol 12 (1) ◽  
pp. 37-52 ◽  
Author(s):  
William D. Samson
Keyword(s):  
United States ◽  
Nineteenth Century ◽  
Income Tax ◽  
Common Factors ◽  
The United States ◽  
Income Taxes ◽  
The South ◽  
Southern States ◽  
State Income ◽  
The Common

In this paper, an author discovers his heritage: the income taxes which evolved in the South of the United States during the nineteenth century. These taxes are of interest because many tax concepts which are now taken for granted were developed during this time. Of particular interest are the common factors and events which led most southern states and the Confederacy to experiment with an income tax. These experiments influenced the structure of the United States federal and state income taxes in the next century.

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