imagine you were the professor; what would you ask? write yourself a
model exam. Better, bring it this weekend we will talk about that!
Tonight’s lecture
TAXATION – *indicates *possible equivalent TERMS IN GERMAN*
Taxation in natura
User fee Verwaltungsgebuhr
Non-affectation principle
Value Added Tax = Mehrwertsteuer
Does not generally exist in the USA.
Advantages of VAT?
1) immigrant income.
2) Easy.
3) Non-Distortionary.
Sales tax: Like the VAT. Verkaufssteuer
Not all states have sales tax.
Excise Tax = a tax on a product Verbrauchssteuern – Indirekte Steuer
1) Alcohol.
2) Tobacco.
3) Gasoline.
*sin taxes
Is taxing power steuer- ermaechtigung *steuerprivileg* federal, state, or<
concurrent?
Depends on the tax. Zoelle Customs duties are exclusively federal.
Ad valoram property taxes — Grundsteuer are almost always local.
Income Tax Einkommensteuer
“Income from any source derived”
-Worldwide Income! – double taxation [tax treaties] Doppelbesteuerung
-Presumption Vermutung that a) it is income b) subject to taxation
Both Natural and Legal Persons Juristische Person are subject to federal
income tax.
Not all states have income tax
Tax deduction Steuerabzug
Tax credit Steuergutschrift
(Marginal) Tax Rate
-Grenzsteuersatz
Progressive
Flat / Proportional **
Regressive
Taxable income zu versteuerndes Einkommen
Gross Income Brutoeinkommen
Adjusted Gross Income Nettoeinkommen
Basis –
Realization –
Tax Deductions
*Ordinary and necessary business expenses
*Payments of interest on loans
-dividend payments are not business expenses!
Exclusions from Income
Uniforms, Meals at the workplace
Insurance payments
?Scholarships?
Life insurance payments
*Interest from federal bonds.
Capital Gains
Carry Forward
Depreciation Abschreibung
Straight Line Depreciation –Lineare
Double Declining depreciation — Accelerated: *Degressive Abschreibung?
Life of product
*depreciated value is a deduction.
Abgeltungssteuer Taxes on Capital: Gift *Schenkungssteuer and Estate Tax
*Vermoegenssteuer?
*Due on death of the person
*Due on transfer of a gift to another person
Negative income tax
Tax avoidance steuervminderung
Tax evasion steuervermeidung — steuerhinterziehung.
Tax deferral
Audit
Fiscal realism
Fictitious transactions Fiktive Geschaefte / Transaktionen
Offshore
Fiscal transparency
Double taxation Doppelbesteuerung
Taxable Entity –Steuerobjekt?
*Natural Person
–not a partnership!
*Corporation
–exception closely held subchapter S corporation
*Trust
Tax Exemption
Tax exempt organization – 501(c)(3)
Charitable purpose
Laffer curve
Revenue – Verdienst Einnahme government’s receipts
Tax Rate – Steuersatz
Budget – Haushalt – Etat
Interest rate Zins
Standard of proof
Burden of Proof = Beweislast
Burden of Production = Beweisfuehrungslast