This a process of reducing an income, to decrease the overall liability of paying tax.
Ability-to-Pay Taxation The neoteric trending concept in which the tax is levied as per the taxpayer’s economic ability to pay. It is based on the concept that a person who earns more should pay more taxes and the one earning less should pay less.
The de minimis rule is used to determine that whether the price accretion or price appreciation of securities bought at a discount will be taxed at the capital gains tax rate or ordinary income tax rate.
Earned income credit (or EIC) is defined as a refundable tax credit made by the government (USA) to low-to-moderate-income earning individuals and couples, particularly with offspring. The amount of tax credit usually varies as per the income of an individual and upon the number of dependable on a person.
Earnings reflect after-tax income for a company and generally referred as the bottom line. Earnings are one of the main drivers of a company?s share as it, along with other measures, indicate the profitability of a company and its long-term sustainability.