Federal income tax

Depending on 10) _______________, the marginal tax rate ranges from zero to 35%.

The income tax is considered a progressive tax because the tax rate is higher as a percentage of the income for higher-income individuals. For an example showing the tax rates imposed by Congress in 1954 on the taxable income of unmarried individuals—with rates as high as 91%—see the chart at Internal Revenue Code of 1954.

Income tax is also imposed on the 11) _______________ of most corporations and again on dividends paid to stockholders, although individuals usually pay a preferential tax rate on dividends; this is sometimes referred to as 12) _______________.

One unique aspect of federal income tax in the United States is that the U.S. uses citizenship in addition to residency in determining whether a person's income is subject to U.S. taxation. All U.S. citizens, including those who do not live in the United States, are subject to U.S. income tax on their worldwide income. There are provisions that exist to reduce double taxation. Most other countries do not 13) _______________ who are not resident within their borders, unless they have income which is sourced in that country (and even then they only tax that specific income).

Tax deductions / credits

The U.S. government rewards certain behavior with 14) _______________. For example, amounts used to pay mortgage interest on a personal home may be deductible, if the taxpayer elects to itemize. Taxpayers who do not participate in an employer-sponsored pension plan may contribute up to $4,000 ($5,000 if age 50 or above) into an individual retirement account, and deduct that contribution from their gross income if they fall within certain 15) _______________. The Earned Income Tax Credit benefits low- to moderate-income working families. It is also possible to receive a child and dependent care credit for amounts spent on daycare.

For businesses, a corporate expense account is treated under the tax code as either ''accountable'' or ''unaccountable''. Accountable expense accounts are subject to a variety of restrictions and IRS regulations. There must be a documented business purpose for the account, and 16) _______________ must be documentable, typically by means of 17) __________. Any money entrusted to the employee from the account that is not spent for business purposes and accounted for must be returned to the employer.

Ex.5. Translate the following situations using the glossary supplied at the end of this unit and specialized dictionaries. Write a summary of each situation to present in class to be translated by other students.

1) Несмотря на то, что идея отмены в среднесрочной перспективе единого налога на вмененный доход для отдельных видов деятельности обсуждалась и ранее, бизнес, особенно в условиях преодоления последствий финансового кризиса и замены 1 января 2011 года единого социального налога страховыми взносами, воспринял такую новеллу крайне неоднозначно. На площадке Министерства экономического развития России состоялся первый раунд обсуждений рассматриваемого законопроекта, на котором экспертами Палаты на основе обобщения мнений членских организаций, региональных ТПП, собственных замечаний были сформулированы основные недостатки проекта. Сначала более подробно о том, что же предусматривает законопроект. Основной его целью является расширение сферы применения патентной системы налогообложения, для него предлагается дополнить Налоговый кодекс РФ (далее – НК РФ) новой главой «Патентная система налогообложения».

В столь деликатной сфере, как налогообложение малого бизнеса, крайне важно найти баланс интересов, комплексно и публично обсудить все возможные варианты законодательных конструкций, принять соответствующие взвешенные решения, отвечающие не только интересам казны, но и реальному положению дел в сфере малого бизнеса. При доработке законопроекта важно добиться, чтобы он улучшал положение субъектов малого предпринимательства за счет создания стимулирующих условий для применения специальных налоговых режимов.

Владимир Исаков

вице-президент ТПП РФ

«Торгово-промышленные ведомости»

В (437), июль 2010

2) An important tax bill (налоговый законопроект) pending in the US Congress would permit depreciation (начисление износа на основные средства; амортизация материальных активов) of intangibles (нематериальные активы), including goodwill* («гудвилл»; репутация и связи компании; деловая репутация; стоимость деловой репутации), for tax purposes (для целей налогообложения). This would appear to eliminate a major tax barrier against takeovers (поглощения).

Just a short time ago, Congress had been carefully scrutinizing possible tax incentives for acquisitions (приобретения), such as deductions for interest expense, with an eye towards removing them.

Now it is considering a proposal that appears to increase the tax attractiveness of acquisitions, especially those in which large premiums are paid.

In July last year, Congressman Dan Rostenkowski introduced a bill, HR3035 entitled “ Amortisation (начисление износа на нематериальные активы; амортизация нематериальных активов) of Goodwill and Certain Other Intangibles”.

The bill would provide a uniform 14 year amortization period for goodwill and other intangibles.

The inability to deduct or amortise amounts paid for goodwill has long been one of the main constraints in tax planning of acquisitions in the US.

While businessmen recognize that goodwill may be an important business asset, they also recognise that its value may be fleeting. During the 1980s, the large premiums paid in acquisitions often resulted in prices that greatly exceeded the value of tangible assets (материальные активы), further increasing the significance of the non-deductibility of goodwill (отсутствие возможности вычета расходов на нематериальные активы / невозможность предъявления к вычету расходов на нематериальные активы).

By allowing amortisation of goodwill, HR3035 would appear to increase the attractiveness of acquisitions.

A closer examination of the proposal, however, reveals that the motive behind it is not to provide a tax incentive for acquisitions (предоставление налоговых льгот при приобретении / покупке).