The Most Tax Friendly Country In The World Is…. (Spoiler Alert: It’s Not the U.S.)

The United States pays more in taxes than other developed countries. It’s more expensive to do business here than anywhere else. You’ve heard those kinds of statements before, right? It’s been drilled into our consciousness – especially in an election year. But is it true? Not so says KPMG. The accounting giant conducted a major study of the general tax competitiveness of fourteen countries with an emphasis on the climate in 55 major international cities. The study took into consideration the relative corporate income tax, capital tax, sales tax, property tax and miscellaneous local business tax burdens of those countries, …

Illinois Facing Higher Taxes

Living in the Prairie State just got a whole lot more expensive. Facing a gaping hole in the budget, Illinois lawmakers have scrambled to find a way to pay the bills. Their solution? A significant tax hike. The Senate and the House have approved tax increases across the board for the states. Personal income tax rates will jump 66% from 3% to 5%. Corporations are not spared either with corporate income tax rates rising more than 45% from 4.8% to 7%. And the increases aren’t over yet. The House has yet to vote on a massive increase on tobacco. The …

Southern States Have Highest Percentages of Non-Paying Tax Filers

Remember this article (and this one) about the numbers of non-paying tax filers? Today, the Tax Foundation released a series of groupings of IRS data showing the breakdown of non-paying tax filers. You can see the results by the numbers here. The Tax Foundation also released the data as a graph: The red-colored states are those states with the highest percentage of non-paying tax filers (Mississippi tops the list at 45%) and the light blue-colored states are those with the lowest percentage of non-paying tax filers (Alaska sits at the bottom with a mere 21%). The white-colored states are those …

2008 is a Record-Breaking Tax Year

But not necessarily in a good way. The Tax Foundation is reporting that two records were set in 2008: the highest numbers of non-payers and the highest earning non-payers. According to data recently released from IRS, nearly one in three taxpayers paid no taxes or received every dollar back which was withheld. And before you start screaming about the poor not paying their fair share, note that the income level at which a typical family of four will owe no income taxes now exceeds $51,000. Let that sink in for a minute. I’ll post some thoughts later this afternoon about …

IRS Claims 2 Out of 3 Taxpayers Now E-File

And here’s their evidence: Of course more folks are e-filing. It’s fast, it’s easy. And with more folks than ever with internet and computer access, it’s to be expected. But. And you knew there would be a but. Here’s my cynical take… You’ll note fewer taxpayers filing generally, down a whopping 12 million this year. There’s a bump in 2008 – certainly attributable to the stimulus. Might it be the case – and I’m just saying – that folks have been encouraged to filing electronically in order to get money back a little quicker. I’d love to see the data …

Tax or No Tax?

The good news: nearly 50% of American households (47%, to be precise) won’t pay any federal income tax in 2009. The bad news: the remaining 50% (or so) will have to foot the bill for everyone. You can thank (or blame) the new economic recovery package for bumping the percentage of taxpayers who won’t be paying a wee bit higher (about 10%). But don’t just start pointing fingers at the working poor. While it’s true that the majority of those who are paying no federal income tax this year make below $30,000 annually, up to 10% of households making between …

Tax Trivia: Millionaires and Taxes

We have a winner! See comments! Our next tax trivia question is: For the 2006 tax year, which state’s population filed the fewest number of individual tax returns reporting adjusted gross income of more than $1 million? Don’t forget: the first correct answer wins free CCH tax prep software. What’s your guess?

More Than Half of US Companies Pay No Income Tax

According to the Government Accountability Office, in any given year, at least 60% of US corporations surveyed paid no federal income tax liability for 1998 to 2005 (the years studied). That statistic includes corporations of varied sizes. If the trends in the survey are accurate, nearly one quarter of large US corporations don’t pay any federal income tax at least half of the time. Large U.S. corporations are those with at least $250 million in assets or gross annual receipts of at least $50 million. Even more interesting? Nearly three-quarters of large foreign-owned corporations operating in the US reported no …

No Surprise Here: IRS Data Says More Taxpayers Filed in 2008

The IRS has reported that as of May 3, 2008, more tax returns had been processed than at the same time last year. How many more? About 15 million more to nearly 142 million, an increase of about 11%. And despite what those hold times felt like, the number of phone calls answered by IRS representatives totaled 18.4 million calls, up from 16.2 million calls, an increase of 13.1%. More significantly, the IRS completed 22.2 million automated calls (a la “Where is my refund?”), an increase of 19.2% from last year. More taxpayers filing returns. That wasn’t unexpected, was it? …