US Capital Gains Tax
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In recent times a decision has been taken by US capital tax authorities to levy a US capital gains tax at rate of 90 percent on bonuses that have been earned by people who work in prominent banks of that country.
This move regarding capital tax of US by US House of Representatives has attracted ire of some noted economists as well as financial analysts who have opined that this step has not been well conceived. They have also said that this is a bit hasty attempt at gaining popularity by present administration.
In recent times a decision has been taken by US capital tax authorities to levy a US capital gains tax at rate of 90 percent on bonuses that have been earned by people who work in prominent banks of that country.
This move regarding capital tax of US by US House of Representatives has attracted ire of some noted economists as well as financial analysts who have opined that this step has not been well conceived. They have also said that this is a bit hasty attempt at gaining popularity by present administration.
Much of furor regarding present capital tax in US is regarding bonuses received by employees of AIG. A bone of contention is fact that some employees of AIG work at outlets that are based in London. In case of these employees it would not be possible to levy capital tax at US.
It is also being speculated at certain levels that companies that would be able to evade this particular US capital tax would now be making sure they are able to do that quickly. Latest US capital tax would be imposed on bonuses that have been paid by companies that have got financial assistance from Troubled Asset Relief Program, as well as Freddie Mac and Fannie Mae.
As per latest information an initial portion of $250,000 from compensation received by these institutions would be subjected to usual rates of taxation. If there is any amount in excess of this sum would be taxed at a rate of 90 percent.
However, bill passed by US Senate regarding US capital tax was much tougher compared to one that had been passed by House of Representatives. As per this bill that had been backed by US Senate all organizations that had been recipients of financial assistance provided by federal government should have been subjected to US capital tax.
This bill had recommended a rate of taxation of 70 percent that was to be divided equally between ones that provide bonuses and ones who received them. Economists have expressed fears that investors in US could back track on their transactions if present administration continues to impose US capital tax at rate of present one.
