Under pre-Act law, the work opportunity tax credit (WOTC) allows employers who hire members of certain targeted groups, including qualified veterans, to get a credit against income tax of a percentage of qualifying first-year wages up to $6,000 per employee ($12,000 for certain qualified veterans; and $3,000 for qualified summer youth employees). Generally, the percentage of qualifying wages is 40% of first-year wages, for a maximum WOTC of $2,400 (.4 × $6,000), or $4,800 for certain qualifying veterans (.4 × $12,000); it’s 25% for employees who have completed at least 120, but less than 400, hours of service for the employer. Different rules apply for recipients of long-term family assistance.Continue reading
Please contact mary‐beth.fisher at us.bnpparibas.com with any questions, comments or corrections.
Top 10% earn only 46% of Adj Gross Inc in the US but pay 70% of the Federal taxes. AGI income split point for top 10% is $114K.
Also note that the Bottom 75% (<$67K) of all earners pay only 14% of all Inc Taxes! The bottom 50% pay 3% of all Inc Taxes.
Yes, them rich folks are really getting a free ride.
Apparent there is a very brief (3 page) overview of income and payroll taxes – who pays, how much, the effective tax rates – and why (I think) this clarifies the need to significant tax reform.
This document is still in development (though can be forwarded to clients, but please be aware as the disclaimer states, this represents my opinions alone, not those of BNP Paribas) and I hope to include more information over time, incorporate a broader context, and correct any mistakes.Continue reading