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:
“A mental disease has swept the planet: banalization.... Presented with the alternative of love or a garbage disposal unit, young people of all countries have chosen the garbage disposal unit.”
—Ivan Chtcheglov (b. 1934)
“As a Tax-Paying Citizen of the United States I am entitled to a voice in Governmental affairs.... Having paid this unlawful Tax under written Protest for forty years, I am entitled to receive from the Treasury of “Uncle Sam” the full amount of both Principal and Interest.”
—Susan Pecker Fowler (1823–1911)
“The bases for historical knowledge are not empirical facts but written texts, even if these texts masquerade in the guise of wars or revolutions.”
—Paul Deman (1919–1983)