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Congress finally acted on New Year's Day, passing the "fiscal cliff" law. This law extended the existing tax rate structure for single taxpayers with taxable income of below USD 400,000, and married taxpayers with taxable income of less than USD 450,000. For using higher incomes, the top tax rate was increased to 22.6% These limits are determined ahead of foreign earned income exclusion.

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Defenders belonging to the IRS position would say it comes home to Section 61. The waitress provided a service for me, and I paid for this. Compensation for services is taxable. End of case.

Copyright 2010 by RioneX IP Group LLC. All rights lined up. This material may be freely copied and distributed subject to inclusion in the copyright notice, author information and all the hyperlinks are kept still in effect.

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