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 Party on the Reorganisation of the Income Tax Act 1976 Following on from these reports the government in 1995 established a review process for rewriting the income tax legislation, overseen by an advisory panel drawn from the private and public sectors. The Income Tax Act has since been largely rewritten in a plain English style with a radically re-organised structure, including a unique (for New Zealand) alpha-numeric section referencing system (as opposed to the more usual numeric system. It was re-enacted as the Income Tax Act 1994 and again as the Income Tax Act 2007 as the various parts of the legislation was progressively rewritten. The Rewrite Advisory Panel was