Income tax in the United States These treaties reduce the chance of double taxation by allowing each country to fully tax its citizens and residents and reducing the amount the other country can tax them. Generally the treaties provide for reduced rates of tax on investment income and limits as to which business income can be taxed. The treaties each define which taxpayers can benefit from the treaty. The United States social insurance system is funded by a tax similar to an income tax. Social Security tax of 6.2% is imposed on wages paid to employees. The tax is imposed on both the employer and the
Working Tax Credit in tax credits; so the true cost is only £41. Other concessions with regard to assessment of income (in contrast to means testing used elsewhere) include: Around 7 million people in the UK are entitled to claim Working Tax Credit or the companion Child Tax Credit, although around 2 million people do not do so. The levels of Tax Credit take-up in the UK have not risen in recent years, despite an increase of 100,000 children living in households classed as "below the poverty line" between 2004 and 2005. The introduction of the Working Tax Credit scheme was marred by