Double Taxation
Double taxation still occurs within these tax-sheltered investment arrangements. For example, foreign dividends may be taxed at their point of origin, and the IRS does not recognize this tax as a creditable deduction. There is some controversy over whether this violates tax treaties, such as the Convention Between Canada and the United States of America With Respect to Taxes on Income and on Capital.
Read more about this topic: Individual Retirement Account
Famous quotes containing the words double and/or taxation:
“You spotted snakes with double tongue,
Thorny hedgehogs, be not seen.
Newts and blindworms, do no wrong,
Come not near our Fairy Queen.”
—William Shakespeare (1564–1616)
“Whether talking about addiction, taxation [on cigarettes] or education [about smoking], there is always at the center of the conversation an essential conundrum: How come we’re selling this deadly stuff anyway?”
—Anna Quindlen (b. 1952)