The amounts of income tax expense (benefit) reflected in operations is as follows:

	2019			2018
Current:
Federal	$	(82,673	)	$	(118,269	)
State		109,593			44,315
Foreign		887,556			618,930
Total:	$	914,476		$	544,976

Deferred:
Federal	$	92,446		$	311,608
State		22,634			76,290
Total:		115,080			387,898
Total Income Tax Expense:	$	1,029,556		$	932,874

The current state tax provision was comprised of taxes on income, the minimum capital tax and other franchise taxes related to the jurisdictions in which the Company's facilities are located.

	2019		2018
United States	$	800,796	$	1,928,627
Foreign		5,742,368		3,602,597
Total:	$	6,543,164	$	5,531,224

As discussed in Note 11 below, for segment reporting, direct import sales are included in the United States segment. However, the revenues are earned by our Hong Kong subsidiary and related income taxes are paid in Hong Kong whose rate approximates 16.5%. As such, income of the Asian subsidiary is included in the foreign income before taxes.

The following schedule reconciles the amounts of income taxes computed at the United States statutory rates to the actual amounts reported in operations:

	2019			2018
Federal income taxes at 21% statutory rate	$	1,365,124		$	1,146,673
State and local taxes, net of federal income tax effect		109,593			95,278
Permanent items		(137,051	)		(75,022	)
Effect of federal rate change on deferred taxes		—			(111,324	)
Foreign tax rate difference		(209,216	)		(59,232	)
Change in deferred income tax valuation allowance		(98,894	)		(63,499	)
Provision for income taxes:	$	1,029,556		$	932,874

	2019			2018
Deferred income tax liabilities:
Plant, property and equipment	$	1,022,898		$	847,162
		1,022,898			847,162
Deferred income tax assets:
Asset valuations		604,755			575,920
Pension		81,561			105,647
Other		287,115			278,948
		973,431			960,515
Net deferred income tax (liability) asset:	$	(49,467	)	$	113,353

On January 22, 2018, the FASB released guidance on the accounting for tax on the global intangible low-taxed income (“GILTI”) provisions of the Act. The GILTI provisions impose a tax on foreign income in excess of a deemed return on tangible assets of foreign corporations. The Company considers any potential GILTI as an expense in the period the tax is incurred.

In 2019, the Company evaluated its tax positions for years which remain subject to examination by major tax jurisdictions, in accordance with the requirements of ASC 740 and as a result, concluded no adjustment was necessary. The Company files income tax returns in the U.S. federal jurisdiction, and various state and foreign jurisdictions. The Company’s evaluation of uncertain tax positions was performed for the tax years ended December 31, 2016 and forward, the tax years which remain subject to examination by major tax jurisdictions as of December 31, 2019.

Due to the uncertain nature of the realization of the Company's deferred income tax assets based on past performance of its German subsidiary and carry forward expiration dates, the Company has recorded a valuation allowance for the amount of deferred income tax assets which are not expected to be realized. This valuation allowance, all of which is related to deferred tax assets resulting from net operating losses of the Company’s German subsidiary, is subject to periodic review, and, if the allowance is reduced, the tax benefit will be recorded in future operations as a reduction of the Company's tax expense.