Income tax in the United States income taxes. This foreign tax credit is limited to that part of current year tax caused by foreign source income. Determining such part involves determining the source of income and allocating and apportioning deductions to that income. States tax resident individuals and corporations on their worldwide income, but few allow a credit for foreign taxes. In addition, Federal income tax may be imposed on non-resident non-citizens, including corporations, on U.S. source income. Federal tax applies to interest, dividends, royalties, and certain other income of nonresident aliens and foreign corporations at a flat rate of 30%. This rate is often reduced
Lifetime income tax would make the first 8-10 years of the average Canadian's working life income tax-free. After that point, each next $250,000 of lifetime earnings would taxed at a progressively higher rates (14% rate until reaching $500,000, 20% until reaching $750,000, 24% until reaching $1 million, and 27% above $1 million). Critics argued that the system would actually increase taxation complexity, increase effective tax burdens, and increase taxation on older people and single families. Stephen Harper won the leadership election on the first ballot and Clement's ideas received no further significant airing. Lifetime income tax Lifetime income tax is a proposal for