Income Tax Essays (Examples)

Filter results by:

 

View Full Essay

Tax Advise Table of Contents Optional Louise

Words: 2764 Length: 7 Pages Document Type: Essay Paper #: 81638421

Tax Advise

Table of Contents (optional)

Louise is aged 50 and single. Since 1994 she has carried on a retail business as a sole trader. Her trading profits as adjusted for tax purposes and after capital allowances, for the year ended 30th April 2009 were $150,000.

The business is carried out from a number of valuable retail outlets, all of which are owned by Louise personally. These units have been acquired over a number of years since 1994 and their market values have increased considerably in recent years.

Apart from her single personal allowance tax credit, Louise is entitled to income tax relief in respect of $10,000, which she pays annually to a evenue approved pension scheme.

Louise's personal living expenses and other financial commitments total $50,000 per annum (including the contribution of $10,000 to the evenue approved pension scheme referred to above).

Louise is considering transferring her business to…… [Read More]

References

Maertin, James CPA. U.S. Tax Preparation Worldwide. [

  http://www.jamesdance.com/deductions.htm  %5D

http://www.hmrc.gov.uk/menus/aboutmenu.htm "HM Revenue and Customs: About Us." Hmrc.gov.uk. Crown Copyright. 2005-04-18.http://www.hmrc.gov.uk/menus/aboutmenu.htm. Web. 30 July 2010.

Davis Esq., Tricia. Limited Liability Companies: Could your personal assets be at risk? Web. 30 July 2010.
View Full Essay

Tax Efficient Financial Strategies Company Name Here

Words: 660 Length: 2 Pages Document Type: Essay Paper #: 77549155

Tax Efficient Financial Strategies

Company Name Here

Managing Director

MACOBUTTON AcceptAllChangesShown [name]

Tax Efficient Financial Planning

Astute financial planning in the current economic climate is critical. While we cannot control the ebbs and flows of either the market or the decisions of the government that affect one's personal finances, we can attempt to grow and preserve wealth through tax efficient financial planning. There are solid vehicles available, if utilized correctly, can successfully minimize income, capital gains and estate taxes for our clients. Below provides detailed information on vehicles available to provide minimal tax exposure.

Income Tax Minimization

Deferred Variable Annuities

Using this method clients not only are able to minimize their incomes taxes, but they this vehicle also provides asset protection.

401K or other Qualified etirement Plan

Contributions to a 401k or a similar retirement plan are tax-deferred and not-taxable until withdrawal. Contributions help to lower an individual's AGI thereby…… [Read More]

References

Baldwin, W. (2010, July 30). Six Ways To Avoid Capital Gains Tax Page 2 of 3 - Forbes.com. Information for the World's Business Leaders - Forbes.com. Retrieved July 26, 2011, from  http://www.forbes.com /2010/07/30/avoid-capital-gains-tax-anschutz-personal-finance-baldwin-tax-strategy_2.html

Botkin, S. (2010). Lower Your Taxes - Big Time 2011-2012. New York: McGraw-Hill.
View Full Essay

Tax Law Letter Mr And Mrs Bob

Words: 1492 Length: 5 Pages Document Type: Essay Paper #: 73692632

Tax Law Letter

Mr. And Mrs. Bob and Anna Diamond

I would like to start by thanking you for entrusting me with guiding you as you plan this next phase of your financial growth. Tax considerations are an important part of ensuring your financial independence and security at any time, and after retirement they can become some of the most significant factors and forces of change in a family's financial position. It is wonderful that you are pursuing your various options in such a considered and careful manner, and I am more than happy to help you in this process of growth and change in your lives.

It is my understanding that you are considering several different property purchases and other methods for generating income through the renting of properties you do or will own. Specifically, you are exploring the possibilities of letting out rooms in the house that you…… [Read More]

View Full Essay

Tax Cut Policy on Public

Words: 1450 Length: 5 Pages Document Type: Essay Paper #: 70977478

(the Bush Tax Cut: One Year Later)

The members of the AFSCME believe that the Taxes imposed under the Bush administration has influenced them very unenthusiastically, since it has assisted to restrict their capability to concentrate on vital national problems for fairly a few years, due to the reality that the Tax Act comprises every clause that would help the affluent and well-to-do and might add more new tax cuts slowly, and the entire would render the ultimate bill more costly than even George Bush had planned for it to be. Ultimately, every household holding job would be harshly hit by the plan. Besides, its influence on the question of Public Debt is worrying as well. The reality that novel Tax Cut might rescind the Estate Tax is an issue of apprehension as well, particularly since a majority of the states normally share this proceeds with the federal government. (the…… [Read More]

View Full Essay

Tax Returns for Partnerships and C Corporation

Words: 595 Length: 4 Pages Document Type: Essay Paper #: 15269600

Tax Returns for C Corporation and Partnerships

Tasty Treats and Beverages is a registered company in the United States. The company was incorporated in 2004, and operates under the C Corporation for the tax purpose. A C-corporation refers as a business entity subject to the federal income tax. A company operating under the C Corporation can enjoy host of tax credit that can assist it to enjoy a tax reduction that the company has to pay to the federal government. This paper uses the excerpt from the Tasty Treats & Beverages, Inc. annual income statement to prepare the tax return for the company.(See Appendix 1).

Tasty Treats & Beverages, Inc.

Income Statement ($)

For year ended December 31, 2013

Revenue from sales

1,500,000

Total Expenses

(885,050)

Income before taxes

284,450

Federal income tax expense

96,713

Net income after taxes

187,737

As being revealed in the company statement of income data,…… [Read More]

View Full Essay

Tax Avoidance versus Tax Evasion

Words: 3179 Length: 8 Pages Document Type: Essay Paper #: 51489888

Tax Avoidance vs. Tax Evasion

The main objective of a tax advisor is to assist his/her clients avoid taxes as much as possible through within the confines of the law in order to avoid crossing the line into tax evasion. In this case, the tax advisor guides his/her clients based on the law regarding tax avoidance and tax evasion. This paper focuses on comparing the concepts of tax avoidance and tax evasion based on Gregory v. Helvering case as well as other cases that mention this case. In this case, the paper will include a discussion of tax avoidance and tax evasion based on cases citing Gregory v. Helvering case. The use of these cases in the discussion is for the purpose of enhancing understanding of tax avoidance and tax evasion and how an individual can avoid evading taxes. This paper will also discuss whether tax liability minimization falls under…… [Read More]

References

Leagle. (2013). Bank of N.Y. Mellon Corp. v. Commissioner. Retrieved June 29, 2017, from http://www.leagle.com/decision/In%20TCO%2020130211A00/BANK%20OF%20NEW%20YORK%20MELLON%20CORPORATION%20v.%20COMMISSIONER%20OF%20INTERNAL%20REVENUE

This source provides details regarding the Bank of N.Y. Mellon Corp. v. Commissioner case in relation to taxation. The source includes a description of the facts, issues, and rule of law relating to this case. It also includes an explanation of the court's ruling and the reasoning behind the decision.

Leagle. (1935). Gregory v. Helvering. Retrieved June 29, 2017, from http://www.leagle.com/decision/1935758293US465_1704/GREGORY%20v.%20HELVERING

This source provides details regarding the landmark U.S. Supreme Court case of Gregory v. Helvering in relation to taxation. The source includes a description of the facts, issues, and rule of law relating to this case. It also includes an explanation of the court's ruling and the reasoning behind the decision.
View Full Essay

Taxes Direct Democracy and Federalism

Words: 1986 Length: 7 Pages Document Type: Essay Paper #: 18339951

This is designed to help support individuals who are dealing with financial challenges. The problem is that select amounts of recipients will use as a way to live off of the government. (Wolf, 2005)

How might a socialist and a capitalist government differ in its treatment of the problem of unemployment?

Socialists want to see massive amounts of government spending to create new jobs, training programs and provide unemployment benefits. A capitalist is opposed to these kinds of programs and believes that charities / private enterprises can address these issues.

In your opinion, should the government have the responsibility of providing health care for every citizen? Why or why not?

Yes, the government should provide health care. The reason why is because prices are increasing exponentially and the number of uninsured is rising. These factors are a sign that there is very little competition inside the sector. To address these…… [Read More]

References

2012 Puerto Rico Statehood Amendment. (2012). Boards. Retrieved from:  http://www.boards.ie/vbulletin/showthread.php?p=77582334 

Commerce Clause. (2012). Britannica. Retrieved from: http://www.britannica.com/EBchecked/topic/127865/commerce-clause

Principles of Constitutional Construction. (2010). Constitution.org. Retrieved from:  http://constitution.org/cons/prin_cons.htm 

Sin Taxes. (2005). Six Taxes. Connecticut Voices for Children. Retrieved from: http://www.ctkidslink.org/publications/bud05sintax02.pdf
View Full Essay

Tax Law Oil and Gas Is Currently

Words: 3220 Length: 10 Pages Document Type: Essay Paper #: 14203970

Tax Law

Oil and Gas is currently at the core of ussia's economy, even though there has been talk at the head of the ussian federation of intentions to attempt to move the economy from one which is based solely in these natural resources, to one which is based on rapidly evolving technology. Of course it will be at least a decade before movements and developments in this fashion are able to unfold with real significance. However, given the strong presence and foundation of the oil and gas sector in ussia's economy, it is natural that the bulk of the regulatory law is founded around these pillars.

Excise Tax

Excise taxes in ussia refer to taxes which need to be paid out on certain goods in ussia, such as raw and refined alcohol, alcoholic drinks which are stronger than 1.5% by volume, cars and motorcycles with engines that have horsepower…… [Read More]

References

Cfe-eutax.org. (2013). Excise duties in Russia. Retrieved from cfe-eutax.org:  http://www.cfe-eutax.org/taxation/excise-duties/russia 

Deloitte.com. (2012). Tax and Legal Guide. Retrieved from Deloitte.com: http://www.deloitte.com/assets/Dcom-Russia/Local%20Assets/Documents/Energy%20and%20Resources/dttl_Guide-to-the-Russian-Oil-Gas-Sector_03092012.pdf

EY.com. (2011). Doing Business in the Russian Federation. Retrieved from EY.com:  http://www.ey.com/Publication/vwLUAssets/Doing-business-in-the-Russian-Federation-2011/$FILE/Doing-business-in-the-Russian-Federation-2011.pdf 

GFC. (2010). Reducing Carbon Emissions Through Transport Taxation. Retrieved from greenfiscalcommission.org.uk:  http://www.greenfiscalcommission.org.uk/images/uploads/gfcBriefing6_PDF_ISBN_v7.pdf
View Full Essay

Tax System of One Country With That

Words: 4394 Length: 15 Pages Document Type: Essay Paper #: 98725627

tax system of one country with that of another is an exercise fraught with dificulties and ultimately doomed to failure . tax system will never be much more than a reflection of strongly national cultures and forces. discuss this statement in the light of your knowledge of comparative tax system in developing and/or developed countries i

Tax Systems

The following pages focus on analyzing the factors of influence on different countries' taxation systems. The paper begins with an introductory section that allows readers understand the point-of-view used in this paper. The following section refers to describing the taxes pand taxation systems used by most countries and their objectives, in order to understand the similarities and differences between these taxation systems. The paper continues with the analysis of several factors that influence countries' tax system design, like cultural factors, technological developments, and natural resources. In order to exemplify this, the taxation…… [Read More]

Reference list:

1. Pasekova, M. et al. (2011). Comparative Analysis of Tax Systems: Some Evidence from CEE Countries. World Academy of Science, Engineering, and Technology. Retrieved February 27, 2012.

2. Greenhouse, S. (2011). Tiny Tax on Financial Trades Gains Advocates. The New York Times. Retrieved February 28, 2012 from http://www.nytimes.com/2011/12/07/business/global/micro-tax-on-financial-trades-gains-advocates.html?_r=1&pagewanted=all.

3. Ross, M. (2004). Does Taxation lead to Representation? Cambridge University Press. Retrieved February 28, 2012.

4. Seto, T. (2008). Four Core Principles of Tax Design System: Introduced and Applied to the Taxation of Multinationals. Loyola Law School. Retrieved February 28, 2012.
View Full Essay

Tax Regulations

Words: 577 Length: 2 Pages Document Type: Essay Paper #: 1433592

Mrs. Hapless

When considering your case for qualification for Innocent Spouse Relief, the facts are blatantly clear. Under certain circumstances, a spouse can qualify for relief from the IRS. Unfortunately, as detailed below, you do not qualify for any of these relief efforts. Your actions appear to be in strict opposition of the relevant tax code and can be considered fraudulent. Below is a brief explanation of the relevant facts pertaining to your case, the specific issues of your case, and our conclusion.

To begin, married couples who file joint returns are jointly liable for their federal income tax liability. In addition, married couples who live in community property states are jointly liable for community income regardless of how they file their returns. Innocent spouse relief takes three forms under Sec. 6015. The three instances are outlined below. Unfortunately, Mrs. Hapless you do not qualify for relief under any of…… [Read More]

View Full Essay

Tax Implications of Working Abroad

Words: 870 Length: 2 Pages Document Type: Essay Paper #: 62332769

Foreign Work eimbursement

When it comes to job situations that involved a lot of travel or otherwise involve being away from home, working a foreign assignment would surely have to be near or at the top when it comes to the complexity and considerations that are involved. There are some massive legal and lifestyle implications involved including paying for lodging/food while working abroad, the tax implications and so forth. The assignment for this paper asks the author to offer an opinion on the most "essential" reimbursement types when it comes to working abroad. While some may point to cost of living, rent or food, the real issue would be taxes due to the complexity and variance of the tax codes and treaties that exist between the United States and other modernized countries of the world.

Analysis

Many employers operate and exist in multiple countries and this sometimes necessitates having domestic…… [Read More]

References

IRS. (2015). Moving Expenses to and from the United States. Irs.gov. Retrieved 11 November 2015, from https://www.irs.gov/Individuals/International-Taxpayers/Moving-Expenses-to-and-from-the-United-States

IRS. (2015). Publication 15-B (2014), Employer's Tax Guide to Fringe Benefits. Irs.gov. Retrieved 11 November 2015, from https://www.irs.gov/publications/p15b/ar02.html

IRS. (2015). Social Security Tax Consequences of Working Abroad. Irs.gov. Retrieved 11 November 2015, from https://www.irs.gov/Individuals/International-Taxpayers/Social-Security-Tax-Consequences-of-Working-Abroad

IRS. (2015). Tax Topics - Topic 514 Employee Business Expenses. Irs.gov. Retrieved 11 November 2015, from https://www.irs.gov/taxtopics/tc514.html
View Full Essay

How to Limit Your Taxes

Words: 2248 Length: 7 Pages Document Type: Essay Paper #: 22806100

Income Tax Deduction

Taxes have existed in the United States for all of its existence but they took on many forms prior to the modern income tax. The income tax was not finalized and permanently ensconced in the United States law until the 1910's. The tax rates, at its normal levels, have been adjusted upwards and downwards depending on the economic cycles with the most recently developments being the "Bush Tax Cuts" of the 2000's and the recent tax spikes under the Obama Administration. While income taxes affect some more than others, nearly all people are affected based on the assets/income they possess and earn as well as the familial structure they maintain.

Common Tax Deductions

As noted in the introduction, familial status and assets/income are far and away the biggest determinants on how much tax is paid, if any. Indeed, some people actually get money from the government and…… [Read More]

References

IRS. (2014, February 28). Internal Revenue Service. 401(k) Plans. Retrieved February 28, 2014, from http://www.irs.gov/Retirement-Plans/401(k)-Plans

IRS. (2014, February 28). The Health Insurance Marketplace. The Health Insurance Marketplace. Retrieved February 28, 2014, from http://www.irs.gov/uac/Newsroom/The-Health-Insurance-Marketplace

IRS. (2014, February 28). SOI Tax Stats - S Corporation Statistics. SOI Tax Stats - S Corporation Statistics. Retrieved February 28, 2014, from http://www.irs.gov/uac/SOI-Tax-Stats-S-Corporation-Statistics

IRS. (2014, February 28). EP Abusive Tax Transactions - S Corporation ESOP Abuse of Delayed Effective Date for Section 409(p). EP Abusive Tax Transactions - S Corporation ESOP Abuse of Delayed Effective Date for Section 409(p). Retrieved February 28, 2014, from http://www.irs.gov/Retirement-Plans/EP-Abusive-Tax-Transactions-S-Corporation-ESOP-Abuse-of-Delayed-Effective-Date-for-Section-409(p)
View Full Essay

School Finance Property Tax Caps

Words: 1415 Length: 4 Pages Document Type: Essay Paper #: 10081001

Tax Caps/Schools

Tax revolts seem to be an American tradition. Since the American Revolution, American citizens have fought the payment of what they felt were unjust taxes. School taxes have not been any exception to this. Proposition 13 (California), Proposition 2 1/2 (Massachusetts) and the New York State 2% property tax cap all have marked similarities but were born during radically different times. In this short essay, the author will research the three and compare and contrast their initial intentions, successes or failures. e will consider whether these laws were instituted by the vote of the public or of only their representatives. Further we will consider if municipalities or other unites were impacted in the same manner, namely schools, towns, village and/or cities. Primarily, this examination will be from the perspective the educational leadership as these financial topics impact education and the operations of their school districts.

Analysis

Property taxes…… [Read More]

Works Cited

Bal, N.K., & Nunes, R.G. Massachusetts Department of Revenue, Division of Local Services. (2007).

Levy limits: A primer 1 on proposition 2 1/2. Boston: Massachusetts Department of Revenue.

Ferreira, F. (2009). You can take it with you: Proposition 13 tax benefits, residential mobility, and willingness to pay for housing amenities. Journal of Public Economics, 94, 661 -- 673.

Hakim, D. (2011, May 24). Deal reached in albany to cap property taxes. Retrieved from http://www.nytimes.com/2011/05/25/nyregion/in-albany-agreement-is-reached-to-cap-property-tax-increases-at-2-percent.html?_r=1&pagewanted=all.
View Full Essay

How Can Tax Cuts Revive the Economy

Words: 610 Length: 2 Pages Document Type: Essay Paper #: 89897948

Tax Cuts

How Tax Cuts Stimulate the Economy

There are two basic economic theories competing in America today: Keynesian and Classical. Keynesian economic theory calls for the government to influence the economy through government expenditures and collecting of taxes. Classical economic theory asserts that market forces keep the economy in balance and the government should not interfere. However in a strange way, both theories claim tax cuts can stimulate economic growth, the only difference is who gets the tax cuts. Tax cuts for the ordinary American, according to the Keynesian supporters, will put more money into the economy, stimulating economic growth. On the other hand, Classical economists claim that tax cuts for the wealthy will stimulate investment, create jobs, and stimulate economic growth.

Many Classical economists assert that an "Expansionary Fiscal Policy" can, through the lowering of taxes, increase the productivity of the economy, if the tax cuts are aimed…… [Read More]

References

Campbell, JL, & Allen, M.P. (March 1994). The political economy of revenue extraction in the modern state: a time-series analysis of U.S. income taxes, 1916- 1986. Social Forces, 72, n3. p.643(27). Retrieved May 23, 2011, from Academic OneFile.

Lacker, JM, & Weinberg, JA (Summer 2007). Inflation and unemployment: a layperson's guide to the Phillips curve. Economic Quarterly, 93, 3. p.201(27). Retrieved May 23, 2011, from Academic OneFile.

ZELIZER, JE (June 2000). The Forgotten Legacy of the New Deal: Fiscal Conservatism and the Roosevelt Administration, 1933-1938. Presidential Studies Quarterly, 30, 2. p.331. Retrieved May 23, 2011, from Academic OneFile.
View Full Essay

Low Income Housing Tax Credit

Words: 988 Length: 3 Pages Document Type: Essay Paper #: 55812589

Income Tax

What are the pro's and con's of the Bush Administration's proposal to convert the ection 8 voucher program into an aggregated block grant to the state?"

This is a paper that outlines the arguments of why Bush Administration's proposal to convert ection 8 voucher program to block grant is not feasible.

The ection 8 voucher program, which was started in 1976, helps approximately 2 million low-income families and people with special needs, such as the elderly and disabled, pay for rented housing. The program can also be used by these people to save up for down payments when purchasing housing. The program is administered by the Department of Housing and Urban Development, which currently distributes the funds to low-income families through public housing agencies.

Typically, citizens contribute a maximum of 30% of their monthly income in rent, and the Government pays the rest. Families who make less than…… [Read More]

Sources

1) "About the federal Section 8 housing voucher program," The Associated Press State & Local Wire, May 20, 2003.

2) Koff, Stephen, "Section 8 program gets money but won't expand," Plain Dealer, July 26, 2003.

3) "Two demanding jobs to fill," Plain Dealer (Cleveland, Ohio), May 15, 2003

4) "Fiscal Year 2004 HUD Budget Executive Summary," U.S. Department of Housing and Urban Development, Oct 15, 2003, http://www.hud.gov/about/budget/fy04/execsummary.cfm
View Full Essay

Canada & USA Tax Treaty

Words: 1597 Length: 6 Pages Document Type: Essay Paper #: 182530

Tax Planning -- Employer (II of II)

Tax Planning - Employer

The marketplace that businesses operate in has become more and more globalized and international in nature, not to mention extremely competitive. This particular report will focus on the employer and their tax implications when it comes to operating and/or headquartering in one or more countries around the world. The prior report focused on the employee. While the implications for the employee are complicated and diverse enough, they become even more complicated when speaking of the employer, and for a number of reasons.

Considerations

Just as there were a number of considerations relevant to the employee and their tax treatment, there are a number of tax considerations that USCo will need to consider for themselves and they are as follows:

The actual headquarters location (nation, state/province and county/city)

The actual locations outside of that home country (or state and city)…… [Read More]

References

Bachmann, H. (2009, August 20). Can Swiss Banks Thrive After the UBS-U.S. Deal?

Retrieved December 3, 2014, from  http://content.time.com/time/business/article/0,8599,1917648,00.html 

Canada. (2014, December 3). Income Tax Act (R.S.C., 1985, c. 1 (5th Supp.)).

Retrieved December 3, 2014, from  http://laws.justice.gc.ca/eng/acts/I-3.3/
View Full Essay

How Do Taxes Affect Taxpayers

Words: 994 Length: 3 Pages Document Type: Essay Paper #: 62020320

Taxes

Tax laws affect taxpayers because they create the taxpayer and govern all aspects of the taxpayer's obligation to the state. Without tax law, there would be no taxpayer; it is the tax laws that create the obligation to pay taxes, and the punishments for non-payment. Tax laws establish who pays taxes, at what rate they pay taxes, the punishments for late or non-payment, and the establish the tax collection body (IRS) and grant that body the authority to run the tax system. Taxation is one of the major ways in which the state can influence behavior in a democratic country. States have long reserved the right to taxation, and the exclusivity of this right has been a feature of government for centuries. Today, there are usually specific rules regarding what layer of government can levy taxes for what purpose. Taxes have different names, too, including excise taxes, income taxes,…… [Read More]

View Full Essay

Are Tax Avoidance Strategies Effective

Words: 931 Length: 2 Pages Document Type: Essay Paper #: 25845153

Tax Avoidance & Firm Growth

What follows in the next few pages is a review of whether there is a correlation between tax avoidance with corporations and firm growth. Indeed, looking at the literature reveals that the evidence is mixed but that the overall answer is a condition "yes," that there can indeed be a link between tax avoidance and firm growth. To explain the conditional nature of the answer garnered, one can look to the work of Desai, Foley and Hines (2006) when they assert that "firms with sizable foreign operations benefit the most from using tax havens, an effect that can be evaluated by using foreign economic growth rates as instruments for firm-level growth of foreign investment outside of tax havens" (Desai, Foley & Hines, 2006). They further state that "one percent greater sales and investment growth in nearby non-haven countries is associated with a 1.5 to 2%…… [Read More]

References

Chang, S. (2012). The Great Debt Controversy in the U.S. And Beyond. SERI

Quarterly, 5(2), 50-62.

Desai, M.A., & Dharmapala, D. (2006). Corporate tax avoidance and high-powered incentives. Journal Of Financial Economics, 79(1), 145-179.

doi:10.1016/j.jfineco.2005.02.002
View Full Essay

Income Inequality Exploring and Explaining

Words: 1212 Length: 4 Pages Document Type: Essay Paper #: 38310358

The income and wealth gap continues to grow at a faster and faster rate because there is ever more power to affect policy provided to those that have such substantial incomes.

Education and Healthcare

There are other less direct ways in which the income gap is self-perpetuating, as well, establishing a system that purports to be meritocratic -- based on merit, where everyone has an equal chance to succeed based on their own skills and efforts -- but that in reality is stacked in favor of those already endowed with financial success (the Economist, 2006). Access to education is heavily mediated by the ability to pay for this education, and this is true at all levels, from elementary school through to undergraduate and graduate schools; wealthy parents can afford to hire tutors for their children, to pay high fees for prestigious private schools that confer advantages in higher education and…… [Read More]

References

Berman, J. (2011). U.S. Income Inequality Higher Than Roman Empire's Levels. Accessed 5 March 2012.  http://www.huffingtonpost.com/2011/12/19/us-income-inequality-ancient-rome-levels_n_1158926.html 

Domhoff, G. (2012). Wealth, income, and power. Accessed 5 March 2012.  http://www2.ucsc.edu/whorulesamerica/power/wealth.html 

Economist. (2006). Inequality and the American Dream. Accessed 5 March 2012.  http://www.economist.com/node/7059155 

Gilson, D. & Perot, C. (2011). it's the inequality, stupid. Accessed 5 March 2012. http://motherjones.com/politics/2011/02/income-inequality-in-america-chart-graph
View Full Essay

Tax Expenditures One Typical Characteristic

Words: 580 Length: 2 Pages Document Type: Essay Paper #: 22478661

In the meantime, you have a normal, functioning economy. Keynes's theory impelled a host of interventionist economic policies during the Great Depression and formed the essence of Roosevelt's New Deal which influenced Britain and other countries in dealing with their own related depressions. The Great Depression in all countries had compelled people to hoard their money causing the economy to stop at a standstill. Keynes's theory urged governments to step in and to encourage public spending, which the government did by both increasing the money supply and buy buying things itself. In this way, government spending is more effective than taxes since raise in taxes will only serve to dissuade people from buying. An attitude which leads to reduced consumerism, more businesses closing, less employment, firing of current workers, and reluctance to engage in discretionary spending.

2. Division of Government Functions

Our federal system divides responsibilities between the various levels…… [Read More]

View Full Essay

Tax Memo Pension Payments Mr Jones From

Words: 466 Length: 2 Pages Document Type: Essay Paper #: 59010002

Tax Memo: Pension Payments

Mr. Jones

From, Tax Accountant, CPA

You are the president of a corporation owned by yourself and other family members. Your salary from this corporation during the year in question was $48,000. During this same year, $12,000 was also contributed by the corporation to a pension plan held on your behalf. You believe that this contribution should not be considered a part of your taxable income for the year in question. The IRS agent conducting an audit of the year in question believes the pension plan amount should be considered when making a determination of reasonable compensation.

The issues in this case are (1) whether it is proper to include the pension plan in a determination of compensation, and (2) if such inclusion would affect the determination of the compensation amount of any tax liabilities for the corporation or Mr. Jones during the year in question.…… [Read More]

View Full Essay

Tax Federal 'Sin Taxes ' to

Words: 1079 Length: 3 Pages Document Type: Essay Paper #: 20779095

Sugary sodas contain corn syrup, but the American Agricultural Department subsidizes American farmers for growing corn, and this is one of the reasons that high-fructose corn syrup is so ubiquitous in the food supply. e are taxing corn syrup and subsidizing it at the same time, in other words. "The bigger issue, which the industry neither can nor particularly cares to rebut, is that the product [corn syrup] exists at all. e pump absurd quantities of cash into subsidizing corn (we also have a huge tariff on Brazilian sugar cane, incidentally). Over the past 10 years alone, Congress has appropriated more than $50 billion to encourage farmers to grow the stuff. But people don't want to eat $50 billion in subsidized corn. And if the cobs just sat around developing mold, Congress would cut off the spigot. Enter high fructose corn syrup, which sucks up the subsidies and created a…… [Read More]

Works Cited

Adamy, Jane. "Soda Tax Weighed to Pay for Health Care." The Wall Street Journal. May 12,

2009. http://online.wsj.com/article/SB124208505896608647.html

Klein, Ezra. "The Problem with Corn Syrup. The American Prospect. 2008.

http://www.prospect.org/csnc/blogs/ezraklein_archive?month=09&year=2008&base_name=the_problem_with_corn_syrup&35
View Full Essay

Tax Liability a Preview of Capital Structure

Words: 2119 Length: 6 Pages Document Type: Essay Paper #: 45408700

Tax Liability

A preview of capital structure issues

In regards to the overall business environment, capital structure has profound implications of the business, irrespective of its industry. For one, a firm's capital structure is then the composition or 'structure' of its liabilities. For example, a firm that sells $40 billion in equity and $160 billion in debt is said to be 20% equity-financed and 80% debt-financed. The firm's ratio of debt to total financing, 80% in this example is referred to as the firm's leverage. This leverage has implications on the entire firm. For example, leverage in many respects is a double edges sword. On one hand, leverage can amplify gains for firms. However, if used incorrectly, leverage can also amplify loses. As such, firms must be cognizant of its capital structure as complacency can hinder overall business performance. Debt and equity financing, can have a profound implications on the…… [Read More]

References:

1) Myers, Stewart C.; Majluf, Nicholas S. (1984). "Corporate financing and investment decisions when firms have information that investors do not have." Journal of Financial Economics 13 (2): 187 -- 221

2) Baker, Malcolm P; Wurgler, Jeffrey (2002). "Market Timing and Capital Structure." Journal of Finance 57 (1): 1 -- 32.

3) Lyandres, Evgeny and Zhdanov, Alexei, Investment Opportunities and Bankruptcy Prediction (February 2007) Available at SSRN: http://ssrn.com/abstract=946240

4) Timmer, Jan (2011). Understanding the Fed Model, Capital Structure, and then Some.
View Full Essay

Tax Service Profession Is Both

Words: 1502 Length: 5 Pages Document Type: Essay Paper #: 11124612

If the decision is made to remain affiliated with the taxpayer, the member should ensure that the error is neither repeated nor perpetuated.

Conclusion

The rules and regulations implemented for tax service providers and other officials working with taxpayer clients are established in order to ensure the stability and ethical values of the position. Taxpayers are very important, as they uphold the economics and financial health of their community and their country. In this regard, it is the obligation of the tax service official to respect both the system and the client by upholding a high level of ethics.

In turn, the taxpayer should assist the preparer in the mission to provide accurate information that is free of errors. In the case of errors, it is important to emphasize that the system does provide for human error. If either the tax preparer or the taxpayer can be shown not to…… [Read More]

View Full Essay

Tax Expenditure Budgets An Interstate

Words: 371 Length: 1 Pages Document Type: Essay Paper #: 35875832

Pennsylvania, on the other hand, does not create its budget using this framework; though there are certainly credits, deductions, etc., that are similar to the items listed as tax expenditures in the other states' budgets, this is not the perspective the State of Pennsylvania applies to its budget (Pennsylvania Office of the Budget, 2012). This is perhaps reflective of the increasing criticism the tax expenditure framework or model has received from primarily conservative policy makers and analysts, that see the practice as less straightforward in its appraisal of revenues and expenditures than could be accomplished (Burman, 2003).

eferences

Connecticut General Assembly. (2010). Connecticut Tax Expenditure eport. Accessed 7 April 2012. http://www.ctmirror.org/sites/default/files/documents/TaxExpenditureeportMarch2010.pdf

Minnesota Department of evenue. (2012). Tax Expenditure Budget. Accessed 7 April 2012. http://taxes.state.mn.us/legal_policy/Documents/2012_tax_expenditure_links.pdf

Oregon Department of evenue. (2012). A Summary of Oregon Taxes. Accessed 7 April 2012. http://www.oregon.gov/dor/STATS/docs/oregon-taxes-summary-150-800-401.pdf

Pennsylvania Office of the Budget. (2012). Governor's Executive Budget. Accessed 7…… [Read More]

References

Connecticut General Assembly. (2010). Connecticut Tax Expenditure Report. Accessed 7 April 2012. http://www.ctmirror.org/sites/default/files/documents/TaxExpenditureReportMarch2010.pdf

Minnesota Department of Revenue. (2012). Tax Expenditure Budget. Accessed 7 April 2012. http://taxes.state.mn.us/legal_policy/Documents/2012_tax_expenditure_links.pdf

Oregon Department of Revenue. (2012). A Summary of Oregon Taxes. Accessed 7 April 2012. http://www.oregon.gov/dor/STATS/docs/oregon-taxes-summary-150-800-401.pdf

Pennsylvania Office of the Budget. (2012). Governor's Executive Budget. Accessed 7 April 2012. http://www.portal.state.pa.us/portal/server.pt/community/current_and_proposed_commonwealth_budgets/4566
View Full Essay

Income Gap Between the Rich and the Poor of America

Words: 1505 Length: 4 Pages Document Type: Essay Paper #: 13545078

Income Gap

Income disparity does not allow those living in poverty to climb out and join the middle class, and keeps the most wealth, power, and privilege in the hands of a select few.

Topic Sentences to introduce references

Census Income Data

Worsening American Income Inequality: Is World Trade to Blame?

Income and Wealth Inequality in the United States

A Tool for Measuring Income Inequality

The Two Nations

This paper analyzes income levels in the United States. Specifically, it discusses how there are two distinct nations in the United States, one with people who have income levels in the top 20%, and those with income levels in the bottom 20%.

As the disparity grows between rich and poor in America, so does the inequality in our country, which threatens the very fabric of our lives. Income disparity does not allow those living in poverty to climb out and join the…… [Read More]

References

Author not Available. "Income and Wealth Inequality in the United States." Americans for Democratic Action. 2002. 27 April 2004. http://www.adaction.org/pubs/304inequality.html

Blank, Rebecca M. "Selecting among Anti-Poverty Policies: Can an Economist Be Both Critical and Caring?" Review of Social Economy 61.4 (2003): 447+.

Burtless, Gary. "Worsening American Income Inequality: Is World Trade to Blame?" Brookings Review Spring 1996: 26+.

DeNavas-Walt, Carmen, Robert W. Cleveland, and Bruce H. Webster, Jr. "Income in the United States: 2002." Census.gov. Sept. 2003. 27 April 2004.  http://www.census.gov/prod/2003pubs/p60-221.pdf
View Full Essay

Tax Cuts Do Tax Cuts

Words: 369 Length: 1 Pages Document Type: Essay Paper #: 48202182

eaton also adds that low and moderate income people tend to spend money on goods and services that are more likely to result directly in jobs and incomes in the community (the spending continues multiplying on a secondary or tertiary basis). Higher income people spend in a way that contributes to "leakage" to their local economy by taking trips to buying non-local goods and services.

The implication of eaton's article is that tax cuts should be directed at low and moderate income people to stimulate the economy. Perhaps, from a strictly MPC point-of-view, this is correct. but, high income people also invest which stimulates the economy and this should have been explored as well.

ibliography

51% Say Cut Everybody's Taxes to Stimulate the Economy (2009, June 11). Rasmussen Reports. http://www.rasmussenreports.com/public_content/business/economic_stimulus_package/june_2009/51_say_cut_everybody_s_taxes_to_stimulate_the_economy

eaton, R. (2003) the Idolatry of ideology Alternatives Magazine. http://www.alternativesmagazine.com/25/beaton.html… [Read More]

Bibliography

51% Say Cut Everybody's Taxes to Stimulate the Economy (2009, June 11). Rasmussen Reports.  http://www.rasmussenreports.com/public_content/business/economic_stimulus_package/june_2009/51_say_cut_everybody_s_taxes_to_stimulate_the_economy 

Beaton, R. (2003) the Idolatry of ideology Alternatives Magazine.  http://www.alternativesmagazine.com/25/beaton.html
View Full Essay

Tax Deductions for Default

Words: 1187 Length: 3 Pages Document Type: Essay Paper #: 57996689

Tax Deductions: Are Unpaid Loans Tax Deductible?

John loaned his friend Jack $1,000. Jack did not repay the debt and left town. John wants to know if he can claim any tax deduction, and, if so, what is the character of the deduction? However, to answer John's question, one must first find out more information about the nature of the loan. This is critical because there are two broad types of loans and debts: business loans and personal loans. Furthermore, under the correct circumstances, it is possible for people to take tax deductions for certain types of business loans and personal loans. Knowing whether John made Jack a loan from his personal money or from his business money is the crucial first step in determining which, if any, Internal evenue Service (IS) regulations or tax laws will permit John to deduct the unpaid debt.

If John is a business owner…… [Read More]

References

Bailey, A.C. (2014). Unpaid personal loans can reduce your tax bill. Retrieved April 12, 2014

from MyTaxHQ website: http://mytaxhq.com/unpaid-personal-loans-can-reduce-your-tax-bill/

Fishman, S. (2013, June 7). Bad loans to friends and family may be tax deductible. Retrieved April 11, 2014 from Inman News website:  http://www.inman.com/2013/06/07/bad-loans-to-friends-and-family-may-be-tax-deductible/ 

Internal Revenue Service. (2013, December 12). Topic 453- Bad debt deduction. Retrieved April 12, 2014 from IRS website: http://www.irs.gov/taxtopics/tc453.html
View Full Essay

Tax Bibliography Anderson R Rice

Words: 328 Length: 1 Pages Document Type: Essay Paper #: 70078219

Accessed 15 September 2009. http://www.nchc.org/facts/coverage.shtml

Newhouse, J. (1993). Free for all?: Lessons from the RAND health insurance experiment. New York: Harvard University Press.

Physicians for a National Health Program. Accessed 15 September 2009. http://www.pnhp.org/

Quadagno, J. (2005). One nation, uninsured. New York: Oxford University Press.

Sains, a. (2002). "European and U.S. health insurance converging." Europe 420, pp. 11.

Salmon, K. (2007). "Ailing U.S. health insurance system under the spotlight." PharmacoEconomics & Outcomes News 524, pp. 3-4.

Stevens, W. (2003). Health insurance: current issues and background. Hauppauge, NY: Nova Publishing.

homasson, M. (2000). he importance of group coverage: How tax policy shaped U.S. health insurance. Washington, D.C.: National Bureau of Economic Research.

revino, F. (1999). "Quality of healthcare for ethnic/racial minority populations." Ethnicity & health 4(3), pp. 153-64.

U.S. Census Bureau. (2006). "Income Climbs, Poverty Stabilizes, Uninsured Rate Increases." Accessed 15 September 2009. http://www.census.gov/Press-Release/www/releases/archives/income_wealth/007419.html… [Read More]

Thomasson, M. (2000). The importance of group coverage: How tax policy shaped U.S. health insurance. Washington, D.C.: National Bureau of Economic Research.

Trevino, F. (1999). "Quality of healthcare for ethnic/racial minority populations." Ethnicity & health 4(3), pp. 153-64.

U.S. Census Bureau. (2006). "Income Climbs, Poverty Stabilizes, Uninsured Rate Increases." Accessed 15 September 2009. http://www.census.gov/Press-Release/www/releases/archives/income_wealth/007419.html
View Full Essay

Tax Cuts Help to Revive

Words: 302 Length: 1 Pages Document Type: Essay Paper #: 99568835

ith the extra money that businesses make, they not only invest it, but they pay some of that in taxes as well. Those taxes go to government, which can spend more. Government spending also fuels increases in business income. As governments collect more taxes from business, they can reduce consumer taxes further.

The net effect of all of this is that lowering taxes on consumers can have an exponential effect on increasing the Gross National Product. Tax reductions not only have a direct effect, but they have indirect effects that filter throughout the nation's economy. In this way, cutting taxes boosts the economy.

orks Cited:

Cloutier, R. (2009). Do tax cuts stimulate the economy? Investopedia. Retrieved November 29, 2009 from http://www.investopedia.com/articles/07/tax_cuts.asp?viewed=1

orks Cited:… [Read More]

View Full Essay

Tax the Benefit Principle of

Words: 307 Length: 1 Pages Document Type: Essay Paper #: 54927407

Medicare, in addition to covering the elderly, is made available to lower-income individuals, and other direct assistance programs also go to these individuals. Combined with other goods and services such as road maintenance and other infrastructure, national security, etc., which are all consumed essentially evenly (again, in one perspective), this would mean that those at the lowest end of the economic spectrum consume the most and should pay the most -- a regressive tax that places the largest burden on those with the least ability to pay (417). In another perspective, however, those with high levels of income, wealth, and consumption benefit a much greater degree from the general services the government provides. The owner of a company benefits from the roads each time an employee drives into work, and from airwaves every time an Internet sale is made, and so on. Calculated thus, the benefit principle would lead to…… [Read More]

View Full Essay

Accounting Finance Alternative Approach to Taxes

Words: 1189 Length: 3 Pages Document Type: Essay Paper #: 64515614

The common guiding principles of economics provide little direction. As a consequence, U.S. international tax policy is a clutter of rules with a diversity of political and economic reasons. It is frequently described as a concession that strikes a balance. Policy leans toward tightening foreign tax rules and putting foreign income on equal footing with U.S. income when it is thought that foreign investment hurts the U.S. economy. Then policy leans toward relaxing the rules and giving foreign income favorable treatment if it is thought that foreign investment promotes U.S. interests (Sullivan, n.d.).

Due to the fact tat every government charges taxes by its own process and at its own rates, the ensuing system of international taxation often warps investment and adds to reductions in international economic well-being. The environment of these alterations depends on the way of taxing profits from international investment. If investment earnings are taxed only at…… [Read More]

View Full Essay

Lakes Tax Research Memo Personal Injury Winning

Words: 820 Length: 3 Pages Document Type: Essay Paper #: 26060661

Lakes

Tax Research Memo

Personal Injury winning treatment and other issues research

XYZ CPAs

NearLakes City

John Smith tax issues

Treatment for purposes of Federal Tax Income of $300,000 fee received out of the amount awarded by Jury.

Applicable Law:Any winnings in a personal injury lawsuit that cover the treatment of physical injuries are not taxable except for attorney fees which are taxable. IRC SEC 104(a)(2).Taxability also depends upon the place of residence of the taxpayer.

$300,000 received by John Smith as fees from jury award is taxable for federal tax income purposes.

Treatment for purposes of Federal Tax Income of $25,000 expenses paid upfront and received out of the amount awarded by Jury.

Applicable Law: Any winnings in a personal injury lawsuit that cover the treatment of physical injuries are not taxable except for attorney fees which are taxable. IRC Sec 104(a)(2).Any expenses can be claimed as a deduction.Taxability…… [Read More]

View Full Essay

California Tax Payers Who Commit

Words: 1208 Length: 3 Pages Document Type: Essay Paper #: 24436915

Cancellation of debt in this instance may not be taxed in this manner but might be taxed another way.

Certain farm debts: This exemptions only applies to debt incurred directly from an operation of a farm. If more than half your income from the past three years came from farming, and the loan was owed to a person or agency regularly engaged in lending, your cancelled debt is generally not considered taxable income.

Analysis

Since 2007 and 2008, California conformed, with modifications to IC section 108 (a)(1) (E) that allows a limited amount of COD income resulting from the foreclosure or short sale of a qualified principal residence to be excluded. This exclusion does not currently apply for any foreclosure or short sale that occurs on or after January 1, 2009. Danny made his short sale in 2012. "The Mortgage Forgiveness Debt elief Act of 2007 was enacted on December…… [Read More]

References

Foreclosure and Short Sales | California Franchise Tax Board, (2012) [ONLINE] Available at:https://www.ftb.ca.gov/professionals/taxnews/2009/July/Article_9.shtml. [Accessed 16 June 2012].

New California short-sale law can help homeowners -- North Bay Business Journal - North San Francisco Bay Area, Sonoma, Marin, Napa counties - Archive, (2012) [ONLINE] Available at:http://www.northbaybusinessjournal.com/39868/new-california-short-sale-lay-can-help-homeowners/. [Accessed 16 June 2012].

The Mortgage Forgiveness Debt Relief Act and Debt Cancellation, (2012). [ONLINE] Available at: http://www.irs.gov/individuals/article/0,,id=179414,00.html. [Accessed 16 June 2012].
View Full Essay

Federal Government Tax the Main Source of

Words: 2091 Length: 6 Pages Document Type: Essay Paper #: 10260188

Federal Government Tax

The main source of government income is taxes. The government taxes various organizations in the economy differently to ensure that adequate revenue is collected. Corporate use loopholes in the tax system to reduce the tax paid to the federal government. The government should eliminate these loopholes to improve tax collection. Some taxes such as gift and estate tax as they are counter productive. Changes made to the federal tax collection systems will increase the tax collected by increasing compliance.

esearch the most common tax loopholes used by corporations and partnership to avoid paying federal income tax. Discuss two (2) loopholes identified and what strategies you would recommend to the federal government for closing these loopholes.

The federal government gets most of its revenue from collection of tax used to fund most of the expenditure. The government should ensure that the tax collection avenues are free from loopholes…… [Read More]

References

Gans, J. (2011). Principles of economics. South Melbourne, Vic: Cengage Learning.

Ganghof, S. (2006). The politics of income taxation: A comparative analysis. Colchester: ECPR Press.

Conklin, D.W., St.-Hilaire, F., & Institute for Research on Public Policy. (1990). Provincial tax reforms: Options and opportunities. Halifax, N.S: Institute for Research on Public Policy = Institut de recherches politiques.

Pechman, J.A. (1987). Federal tax policy. Washington, D.C: Brookings Institution.
View Full Essay

Itemized Deductions the Federal Tax System That

Words: 627 Length: 2 Pages Document Type: Essay Paper #: 63076943

Itemized Deductions

The Federal Tax system that is managed by the Internal Revenue Service (IRS) contains many complicated rules and regulations that presents many problems and issue for taxpayers wishing to abide by these laws. Itemized deductions is one method of self-reporting that taxpayers choose to use to file their returns. The purpose of this essay is to examine the use of itemized deductions on federal income tax returns. This investigation seeks to understand the history of this application while also evaluating the complex nature of the qualities that determine the appropriateness of this selection. This essay will also examine the effectiveness of itemized deductions as part of the larger component of income tax returns. The essay will conclude by highlighting certain examples where IRS audits were started because of misuse of the itemized deduction.

History of the Itemized Deduction

According to the Internal Revenue Service's web site its history…… [Read More]

Works Cited

The Internal Revenue Service Tax Code. Viewed 19 Feb, 2013, Retrieved from http://www.irs.gov/publications/p17/ch20.html#d0e67864

Viard, A. (2013). The myth of the limits on itemized deductions. The American, January 9, 2013. Retrieved from http://www.aei.org/article/economics/fiscal-policy/taxes/the-myth- of-the-limits-on-itemized-deductions/

Wood, R. (2013). Shh, Home Office and other IRS Audit Trigger Secrets. Forbes, 25 Jan 2013. Retrieved from  http://www.forbes.com /sites/robertwood/2013/01/25/shhh-home-office- and-other-irs-audit-trigger-secrets/
View Full Essay

Professional VAT Value Added Tax Advice for

Words: 2393 Length: 8 Pages Document Type: Essay Paper #: 30667424

professional VAT (value added tax) advice for the managing director of the Grape Limited. The Grape Limited is a U.S. multinational company and decides to incorporate new companies that provide supply management services, management company, manufacturing company and marketing companies. The management company will deliver supply management services to foreign services providers. On the other hand, the manufacturing company will focus on the electronic parts, and marketing company will deliver marketing services for the parts manufactured by the manufacturing company.

VAT egistration

The VAT (value-added tax) is a government levy on any goods or services produced in the epublic of Ireland. The first condition that must be fulfilled before Grape Limited demands for the VAT numbers is to incorporate its businesses in the epublic of Ireland. After the company registrations, the next step is to apply for the VAT number. To apply for the VAT registration number in the epublic…… [Read More]

References

Chattered Accountant (2014). Form VAT 56A. Ireland.

Department of Finance (2015).Summary of 2015 Budget Measures Policy Changes. Ireland.

O'Brien, C. (2014). Personal Tax. KPMG Ireland .

KPMG (2009). Ireland: Country Fact File. KPMG International.
View Full Essay

Global Tax Treaties UN Model and OECD

Words: 4790 Length: 12 Pages Document Type: Essay Paper #: 36069664

global tax treaties, UN model and OECD model with the view of analyzing their consideration towards rights to capital and tax income. By throwing light on differences and similarities among the models, the fundamental logic of each of them is explained. The article explains the prospecting policies of consideration when tax treaties are to be signed. It is because there is strong need to enforce a flexible but more aggressive strategy. The Section 1 of the article discusses rights about tax earnings through immovable property. The Section 2 is about business profits. The Section 3 throws light upon income from investment channels like royalties, interests and dividends. The Section 4 describes the capital gains. The conclusion of the article is given in Section 5.

ight to tax income from immovable property

Because of well-known significant relationship between the country of source of the income and the source of income itself,…… [Read More]

References

Bin Yang, A Comparative Study on the Rules and Administration of the International Taxation System (China Tax Publishing House, 2003).

Bin Yang, International Taxation (Fudan University Press, 2004).

Commentaries on Paragraph 3, Article 7 of the OECD model.

Jin Zhi Liu (translator), Commentaries of UN model Tax Convention between Developed and Developing Countries (China Financial & Economic Publishing House, 1996) 56.
View Full Essay

Business Income Refers to Any Income Usually

Words: 2202 Length: 8 Pages Document Type: Essay Paper #: 64468481

Business income refers to any income usually realized for the execution or transaction of business activity. This indicates that business income is the aspect of earned income from the perspective of business transaction or activity. In order for the business income to apply to the aspect of the taxation system, it is essential to classify business income as ordinary income. Business income consists of business expenses, business losses, and business profits. It is the difference between revenues and expenses of the process of business transactions. This indicates that business income can be positive or negative within the financial year depending on the size of the expenses and revenues. Business income is received from the transactions or sales of products or services within the defined market.

Question Two

OECD model treaty defines a clear perspective in relation to the handling of the business income. This is through indicating that the income…… [Read More]

References

Ault, H.J., & Arnold, B.J. (2010). Comparative income taxation: A structural analysis. S.l:

Kluwer Law International.

Gustafson, C.H., & Pugh, R.C. (1993). International income taxation: Code & regulations, selected sections. Chicago, Ill: Commerce Clearing House.

Scha-fer, A. (2006). International company taxation in the era of information and communication technologies: Issues and options for reform. Wiesbaden: Deutscher Universita-ts-Verlag.
View Full Essay

Have Work Incentive Programs in US Been Effective in Promoting Employment Among Low Income Families

Words: 1266 Length: 4 Pages Document Type: Essay Paper #: 51846491

Incentive Programs Among Low Income

The effects of work incentive programs in encouraging low income individuals to participate in employment depend on the income thresholds of reforms in whether the individual gains benefits that are equal to or greater than what they would receive by not working. The factors in the determination include after tax income plus benefits, such as Earned Income Tax Credit (EITC) and fixed work costs, compared to the total change in revenue received. If the loss of welfare is greater than the total change in revenue, work incentives have no value and discourage employment participation. On the other hand, if the total amount of changed revenue is greater than the welfare loss and compensates for fixed work costs, incentives encourage employment among the low income.

The Tax Reform Act of 1986 (TRA86) expanded EITC benefits by increases in the standard deduction, personal deductions, and favorable tax…… [Read More]

Works Cited

Elissa, Nada. Taxation and Labor Supply of Married Women: The Tax Reform Act of '1986 as a Natural Experiment. Feb 1995. working paper. 20 July 2013.

Elissa, Nada, Kleven, Henrick Jacobsen, & Kriener, Claus Thustrup. Welfare Effects of Tax Reform and Labor Supply at the Intensive and Extensive Margins. May 2004. working paper. 20 July 2013.

Riccio, Jim. Promoting Employment Stability and Advancement Among Low-Income Adults. Mar 2013. article. 20 July 2013.

Rothstein, Jesse. The Unintended Consequences of Encouraging Work: Tax Incidence on the EITC. May 2008. pdf. 20 July 2013.
View Full Essay

National Sales Tax

Words: 1641 Length: 4 Pages Document Type: Essay Paper #: 58179994

sales tax reform in America. Specifically it will discuss the idea of an alternate tax system, the National Sales Tax and compare it to the current tax code. A new way of collecting taxes seems much more fair and equitable than the current income tax method, which seems antiquated and unfair. Some large corporations and America's wealthiest people pay very little or no taxes through tax loopholes, which makes the system, rely on the people who can afford it the least. One expert notes, "Certain business entities such as partnerships, small business corporations and limited liability companies are treated for tax purposes as conduits and pay no federal tax at the entity level" (Boyd, 2005). There has been talk about developing a more equitable system that would be fair to everyone, not just a few. Developing a national sales tax system could help decrease the budget deficit, make the system…… [Read More]

References

Boyd, T. (2005). Tax reform in a global economy: Shifting the tax burden. Review of Business, 26(2), 48+.

This is a business journal that is greatly impartial in its judgement, so the article is more balanced and fair than one produced by a pro-VAT tax source. It is conservative, but it advocates the positive aspects of a VAT tax on businesses and individuals, and how it would simplify doing business in a global economy, as well.

Kotlikoff, L.J. (2008). Why the fair tax will work. Retrieved 12 June 2009 from the Americans for Fair Tax Web site: http://www.fairtax.org/site/News2?page=NewsArticle&id=9321&news_iv_ctrl=1521.

This is a web site advocating a VAT tax called the "Fair Tax," and so, it exists to convince Americans that a national sales tax is desirable and will work. This particular article refutes an economist's claims the tax is a bad idea, so it is subjective at best, fairly liberal, and funded by like-minded individuals who may not want to hear the other side of the story.
View Full Essay

U S Tax Policy Although Smokers

Words: 2407 Length: 7 Pages Document Type: Essay Paper #: 41402953



orks Cited

Thorndike, Joseph J. "The IRS Is Hiding Its History." The ashington Times.

December 19, 1997, p. A23. February 18, 2008. http://www.taxhistory.org/thp/readings.nsf/cf7c9c870b600b9585256df80075b9dd/9de7fcd59915a3be85256e430079327d?OpenDocument

Question

After 9/11, the Federal Reserve Bank, then led by Alan Greenspan, used monetary policy reduced the interest rate, or the rate that consumers must pay to borrow money. This did encourage individuals to spend more. However, it is still debatable if this was the most vital component in extricating America from the throws of economic recession. Government spending, or fiscal as opposed to monetary policy, is often seen as a more direct and superior way to rapidly change economic conditions. Fiscal policy was required to stimulate America's recovery from the Great Depression, according to conventional wisdom, although some still argue that it was the Hoover administration's monetary policy that was ineffective, not that monetary policy was ineffective altogether.

But most economists believe that, to get the…… [Read More]

Works Cited

Heakal, Reem. "What is fiscal policy?" Investopedia. October 22, 2008.  http://www.investopedia.com/articles/04/051904.asp 

Question

Fairness does matter when creating a tax system. In terms of a consumption tax, the poor often consume more than the rich, at least in terms of a percentage of their income. While for a wealthy individual, much of his income can be locked up in assets, making money off of money, for a poor individual, the bulk of his or her income is devoted to buying necessary goods, including rent and food. The consumption tax taxes everyone equally on the surface, regardless of how someone has benefited from the economic system of a particular society, and actually favors those who can allocate their income to sectors of the economy that are not taxed (such as investments, which are not technically consumption).

A flat tax, where everyone pays the same amount, has similar problems in terms of allocating wealth. 15% of a poor person's income, a person who must pay for his or her rent, food, and necessities out of his or her weekly paycheck, means more to that individual than 15% of an income where much of that income can be devoted to investments and luxuries. While not as unfair as a consumption tax as investment income is also taxed, a flat tax is still unfair, and finding the right percentage to finance government operations yet not to be prohibitively costly for the poorest members of society is a difficult balance to strike. The only good thing about the flat tax is its simplicity, as along with the consumption tax as it requires less bureaucracy to enforce. Bureaucracy is expensive as well as frustrating (as anyone who has ever had to fill out a tax form beyond the standard EZ-file well knows!).
View Full Essay

Federal Sales Tax

Words: 1206 Length: 4 Pages Document Type: Essay Paper #: 79564793

Federal Sales Tax

The purpose of the proposed Fair Tax Act of 2003 is "to promote freedom, fairness and economic opportunity by repealing the income tax and other taxes, abolishing the Internal Revenue Service, and enacting a national sales tax to be administered primarily by the states." (oortz, 2003). Unfortunately, there are a lot of beliefs about the proposed legislation that simply aren't true. Fears range from inflation, lower economic growth, unpredictable revenue shortfalls and unfairness to the poor. This paper explains that these concerns are not only false, but that the exact opposite is true in most instances.

One of the common misperceptions of the Fair Tax Act is that it will fuel inflation and dramatically impact the demand for goods with high price elasticities. However, it's likely that the sales tax will have minimal impact on prices. This is because there are already embedded taxes on all products…… [Read More]

Bibliography

Boortz, N. (2003, August 12). End of the income tax? WorldNetDaily. Retrieved November 15, 2005 from Web site: http://www.salestax.org/library/boortz_8-12-03.html

Burton, D.R. And Mastromarco, D.R. (1997, April 15). Emancipating America from the income tax: How a national sales tax would work. Cato Policy Analysis No. 272. Retrieved November 15, 2005 from Web site:  http://www.cato.org /pubs/pas/pa-272.html

Edwards, C. (2001, October 17). Simplifying federal taxes. CATO Policy Analysis No. 416. Retrieved November 15, 2005 from Web site:
View Full Essay

U S Tax in the Treatment US Tax

Words: 988 Length: 3 Pages Document Type: Essay Paper #: 31249945

U.S. TAX in the TEATMENT

US Tax Treatment

Items of income considered earned from within the U.S.

Earned income can be defined as the payment for the performed personal services, for example wages, professional fees or salaries. The list below provides the categories of the types of income tax. It is essential to appreciate the fact that deductions made on the income are determined by the category in which the income falls. The column with heading variable income consists of income in the category of either unearned or earned income or even both (Fraser, 2009).

Types of income

Variable income: they include rents, royalties, and business profits

Unearned income: such incomes include annuities, pensions, social security benefits, Alimony, gambling winnings, capital gains, and interest dividends.

Earned income: tips, professional fees, bonuses, commissions, wages and salaries

Besides the types mentioned which always occur in the form of cash, other taxable sources…… [Read More]

References

Bater, P. (2007). The tax treatment of NGOs: Legal, fiscal and ethical standards for promoting NGOs and their activities. The Hague [u.a.: Kluwer Law Internat.

Dilworth, R.H. (2009). U.S. tax treatment of financial transactions involving foreign currency -- 1990. Arlington, VA: Tax Analysts.

Fraser M. (2009). Canada-U.S. Tax treaty: A practical interpretation. Toronto: CCH Canadian Limited.

Hammer, D.L., Shartsis Friese LLP., & American Bar Association. (2005). U.S. regulation of hedge funds. Chicago, Ill: American Bar Association Section of Business Law.
View Full Essay

Capital Gains Tax in Australia Capital Gains

Words: 2921 Length: 8 Pages Document Type: Essay Paper #: 17440945

Capital Gains Tax in Australia

Capital gains tax refers to a type of tax levied on capital gains incurred by organizations or individuals. The capital gains refer to the profits that an organization or individual selling a capital asset obtains through selling an asset at a price higher than the original price. In many countries, the amount of capital gains tax takes into consideration the type of investment and the holding period of the asset. Australian capital gains tax takes a proportion of all achieved capital gains. Capital gains are not separate tax but part of the income tax on individuals and corporations upon disposing of capital assets. Australian capital gains tax exempts personal properties such as home, car, and furniture. Australian residents in any part of the world are subject to capital gains tax.

Issue 1. Moodly's Conversion of her main residence.

Moodly being a childcare worker, wishes to…… [Read More]

References

OECD Tax policy studies. 2006. Taxation of Capital Gains of Individuals: Policy

Considerations and Approaches. No.14. Paris: OECD Publishing.

Pricewaterhouse Coopers. 2006. Mergers and acquisition: A global Tax Guide. New Jersey:

John Wiley and Sons Inc.
View Full Essay

Property Taxes Are Regressive or

Words: 331 Length: 1 Pages Document Type: Essay Paper #: 9795180

676).

Some argue, however, that the assessment of property taxes in the United States has become regressive. That is, low-income homeowners pay proportionately more of their income on property tax than their high-income counterparts. This situation has developed as homeowner incomes have slowed while property values have raised rapidly. Not all experts agree on whether property taxes are regressive or progressive. Those who argue that property taxes are progressive point to the fact that property taxes tend to reduce the return on capital (p. 690). The net effect of this is that investment in poorer areas decrease and so do rents so that property values decrease as well. The lower property values serve to decrease the property assessments and, therefore, the corresponding property tax, however, there is a delay in the timeframe.

Whether or not property taxes are regressive or progressive will continue to be debated. egardless, such taxes have…… [Read More]

References

Taxes on Wealth, Property, and Estates.

Property & Income Tax
View Full Essay

Carbon Tax in Australia

Words: 1277 Length: 4 Pages Document Type: Essay Paper #: 26623378

Carbon emissions during recent decades have generated much controversy and some communities have taken harsh measures in order to combat effects associated with the process. The Australian Federal Government introduced a carbon tax of $23AUD per ton of emitted carbon dioxide on a series of fossil fuels in order to effectively deal with pollution. Finances gained from the process have been used to reduce income tax and provide Australian citizens with several benefits. hile the legislation has been welcomed by many local and international bodies, some have frowned upon it and have called for its repeal on account of how it produced much damage both on a small level by increasing cost of living and on a larger level by preventing businesses from being able to experience progress.

Tony Abbott's article "THE COALITION'S PLAN TO ABOLISH THE CARBON TAX" is among the most recognized criticisms regarding the carbon tax in…… [Read More]

Works cited:

Bell, L. "Australian Voters Energetically Reject Concocted Climate Crisis And Carbon Tax Disasters." Retrieved October 19, 2013, from  http://www.forbes.com /sites/larrybell/2013/09/29/australian-voters-energetically-reject-concocted-climate-crisis-and-carbon-tax-disasters/

Gardner, T. "U.S., China agree to cut emissions from vehicles, coal." Retrieved October 19, 2013, from http://www.reuters.com/article/2013/07/10/us-climate-usa-china-idUSBRE9690VM20130710

Ryan, R. "Kevin Rudd says Labor 'got it wrong' on introducing carbon tax without mandate." Retrieved October 19, 2013, from  http://www.abc.net.au/news/2013-08-25/rudd-says-labor-got-it-wrong-on-carbon-tax/4910690 

Taylor, L. "Tony Abbott insists carbon tax will end on 1 July -- even if Senate blocks repeal." http://www.theguardian.com/environment/2013/oct/15/tony-abbott-insists-carbon-tax-will-end-on-1-july-even-if-senate-blocks-repeal
View Full Essay

Small Business Taxes Small Business

Words: 1408 Length: 5 Pages Document Type: Essay Paper #: 63038491

The same goes for business-related periodicals and magazines. (Dratch 2008, p. 2)

Mileage: Once again, this involves careful bookkeeping, but the deductions can add up. Keep a dated log of all business-related mileage, tolls, and parking costs. According to the IRS website, the 2009 IRS deduction rate for business-related mileage was 55 cents per mile.

Travel, Entertainment, and Meals: For the small business, 100% of travel and entertainment expenses are deductible, as well as 50% of meal expenses. It should come as no surprise that these deductions must have supporting documentation showing them to be business-related.

Shelter Your Income

Investment property can be a valuable tax shelter. The IRS allows you to shelter up to $25,000 in an investment property, but there are strict requirements. You must own 10% of the property as an individual owner, not through limited partnership. And you must be involved in the "active management" of…… [Read More]

Works Cited

Akasie, Jay. (2009, Apr. 6). Last Minute Small Business Tax Tips. Retrieved May 29, 2010 from  http://www.forbes.com . [website]

Dratch, Dana. (2008, Mar. 26). A Dozen Deductions for Your Small Business. Retrieved May 30, 2010 from http://www.bankrate.com/finance/money-guides/a-dozen-deductions-for-your-small-business-1.aspx. [website]

Tax Tips for Small Businesses. (2010, Jan. 20). Retrieved May 30, 2010 from www.fool.com. [website]
View Full Essay

Penn Tax Memo Tuition Tax

Words: 565 Length: 2 Pages Document Type: Essay Paper #: 93927470



In addition, the estimation of seventy-seven thousand individuals that would be able to receive an additional refund from the tax credit suggests that it could actually cost the state a substantial amount of money to operate this program. These students would not only pay no taxes, but would actually receive money from the state -- a minimally employed student that owed no income tax to begin with could actually receive a refund of eight hundred dollars (forty percent of two-thousand) or more. Clearly, there would be a major impact o the overall state budget from the cost of this program. Though a billion dollars doesn't go as far as it used to, it is still a substantial portion of the state's total sixty-three billion dollar budget (POB, 2012). Though the money saved or sent out to individual taxpayers through this tax credit would most likely be used to make purchases…… [Read More]

References

PASDC. (2012). Quick facts. Pennsylvania State Data Center. Accessed 3 March 2012.  http://pasdc.hbg.psu.edu/sdc/pasdc_files/pastats/PaFacts_2011.pdf 

POB. (2012). Budget in Brief. Pennsylvania Office of the Budget. Accessed 3 March 2012. http://www.budget.state.pa.us/portal/server.pt/community/current_and_proposed_commonwealth_budgets/4566
View Full Essay

American Tax System vs Other Countries the

Words: 1778 Length: 7 Pages Document Type: Essay Paper #: 70830428

American Tax System vs. Other Countries

The federal government first imposed an individual income tax in 1862 as an emergency means of financing the Civil ar. It also established the Bureau of Internal Revenue, predecessor of the Internal Revenue Service. Tax rates were 3% on income from $600 to $10,000 and 5% on income above $10,000. Later in the war the maximum rate increased to 10% of income." (Encarta)

My how times have changed. This paper will compare the tax systems of four different countries to the American tax system. The four countries that have been chosen are South Africa, Mexico, Hong Kong, and New Zealand..

First lets attempt to briefly (if that were possible) explain the American tax system.

The American Tax System

America has a progressive tax system meaning the greatest tax burden is on people who have the most income. The American tax system can be described…… [Read More]

Works Cited

Corporate Service Center. "Federal Tax Rates." http://www.corporateservicecenter.com/Corp/federal_tax_rates.htm. April16, 2002

Film New Zealand. "New Zealand's tax Environment." Jan. 2002 http://www.filmnz.com/filmnz/Content/Production/Development/Taxation/Taxation.html

Flags of the World.  http://www.crwflags.com/fotw/flags/mx.html . April17, 2001

Henry, Aaron. "The South African Tax System: A Nation is Microcosm." Dec. 6,1999:
View Full Essay

Dividend Tax

Words: 3701 Length: 12 Pages Document Type: Essay Paper #: 57808097

Dividend Tax

Capital gains and dividend taxes were both initiated in the early 1970's, by the Democratic Party. efore dividend taxes were enforced, the government made its money through higher aftertax yields, The dividend tax was originally supposed to be a progressive measure, so that the wealthiest paid correspondingly more than the poorest because they had benefited more. At this time, only the wealthy invested in stocks. This is no longer true. Most middle-class people today are investors in the market and they do not have the expensive accountants hired by the rich to shield their investments from tax.

Investing in the stock market has become far more widespread over the last two decades, as 84 million people - representing nearly half of all American households - owning stock. Tax-deferred investment tools such as 401(k) plans and individual retirement accounts (IRAs) have placed millions of Americans who make $60,000 or…… [Read More]

Bibliography

Beach, William. (January 23, 2003). Just what our economy needs. San Diego Union-Tribune. (Berlau, John. *February 6, 2003). Accounting firm fights dividend-tax cut. WorldNetDaily. Retrieved from the Internet at http://civilliberty.about.com/gi/dynamic/offsite.htm?site=http://www.wnd.com/news/article.asp%3FARTICLE%5FID=30894.

Centre for International Co-operation and Development. (2003). Corporate Income Tax. Retrieved from the Internet at http://www.gzs.si/ENG/busenv/financ61.htm.

Edwards, Chris. (January 7, 2003). Nearly All Major Countries Provide Dividend Tax Relief. The Cato Institute. Retrieved from the Internet at  http://www.cato.org /dailys/01-07-03-2.html.

Hall, Joshua. (January 31, 2003). Dumping fed dividend tax practical on several levels. Columbus Business First. Retrieved from the Internet at http://www.bizjournals.com/columbus/stories/2003/02/03/editorial3.html.
View Full Essay

Pay as You Go Taxes

Words: 3857 Length: 10 Pages Document Type: Essay Paper #: 37691907

The people who opt for early retirement stop staring contribution to pension system where as they start getting the benefits of pension system. (Prieto, 1997)

The traditional unfunded social security system is facing lot of problems in the United States and other developing countries with the increasing life expectancy of the people. The cost of providing any level of service is directly linked to the percentage of people who are employed against people who have already retired and enjoying pension in a pay-as-you-go system. The problem is continuing and increasing with people's move towards early retirement which is encouraged in many countries social security system. Even in the event of retirement being stabilized, the steep increase in the ratio of the aged against that of working age is contributing to the substantial raise in the cost of pay-as-you-go system. The United States estimators, who work for social security system, forecast…… [Read More]

References

Aronson, Jay Richard; Hilley, John L; Maxwell, James Ackley. (1986) "Financing State and Local Governments" Brookings Institution Press.

Brainard, William C; Perry, George L. (1990) "Brookings Papers on Economic Activity:

Macroeconomics" Brookings Institution Press.

Campbell, John Y; Feldstein, Martin S. (2001) "Risk Aspects of Investment-Based Social
View Full Essay

Sourcing Equity Tax Management

Words: 870 Length: 3 Pages Document Type: Essay Paper #: 80410350

Sourcing equity / ax management

Contrasting between global tax systems

National taxing has been proven to affect economic decisions made by MNEs. ypically, the settlement of taxation will take two different approaches, which are the worldwide approach and the territorial approach. he first approach will levy taxes based upon the income earned by firms that are controlled in the host country. herefore, an investor earning income internationally would find his/her income taxed by the local tax authorities. For example, a country such as the United States will tax the income earned based upon firms that are located in the U.S. whether the income is received by firms based in the United States, domestically sourced, and/or foreign sourced (Moffett, Stonehill & Eitemen, 2012). However, an issue that arises is that the taxation does not take into consideration the foreign companies that are based in the United States.

herefore, the territorial approach…… [Read More]

They also attract investors as they will provide a deep and liquid market, allows higher investment returns, and are a form of portfolio diversification. Therefore, an investor will profit from the international debt markets as the credit rankings of most of the borrowers are very well, and the borrowers are willing and able to pay a percentage extra for repayment (Sangiuolo & Seidman, 2008). The international debt market consists of unregulated money and capital markets although the dominant currency is the United States dollar. However, the debt securities denominated in euros have grown as the predictability, liquidity and volatility of the euro consolidates. The major forms of Eurocurrency facilities discussed are short-term bank advances (similar to term loans or fully drawn advances) and standby arrangements (source of 'back-up' fund to meet short-term cash shortfalls). They also include medium- to long-term Eurocurrency loans. International debt markets are attractive to both borrows and investors as they can benefit each member in the end. Since major Eurocurrency facilities are attractive because of the lower cost of borrowing, creating a natural hedge and the size of Eurocurrency markets (Razin & Slemrod, 2010).

4. Distinguishing the characteristics of debt instruments

The international debt market uses debt instruments to regulate borrower's repayment plans and investor's investment plans. A debt instrument is a paper or electronically signed obligation that allows the issuing party to raise funds by promising to repay the lender in accordance with the terms of a contract. The borrower will be set up on a plan in order to repay any money used whether it is a short-term or long-term. Typical debt instruments would include the following: notes, bonds, certificates, mortgages, leasing, or other agreements between a
View Full Essay

Basics of Consolidated Returns and Gosystem Tax Rs Taxation

Words: 1903 Length: 6 Pages Document Type: Essay Paper #: 34786433

Consolidated Tax Returns and GoSystems Tax Software

Consolidated Tax Returns

The consolidated tax return, in simple terms, is "a method by which to determine the tax liability of a group of affiliated corporations" (Pratt and Kulsrud 8-2). It is based on the assumption that the business operations of affiliated companies represent a single entity and that, hence, the group's aggregate income ought to be taxed, as opposed to the separate incomes of the member corporations. It would be prudent to mention, however, that the return does not simply report the sum of the taxable incomes of all member corporations as one large, conglomerate entity; rather, it follows a set of special Treasury regulations in determining how to make adjustments for intercompany bargains, and establishing which items to state on a consolidated basis (Pratt and Kulsrud 8-2).

The History of Consolidated Tax Returns

The consolidated tax return traces its origin to…… [Read More]

Works Cited

CPA Practice Advisor. " 2012 Review of Thomas Reuters -- GoSystem Tax RS." CPA Principal Advisor, 2012. Web. 29 August 2014  http://www.cpapracticeadvisor.com/article/10682894/2012-review-of-thomson-reuters-gosystem-tax-rs 

Find Accounting Software. "GoSystem Tax." Find Accounting Software, 2014. Web. 29 August 2014  http://findaccountingsoftware.com/directory/thomson-reuters-professional-software-services/gosystem-tax/ 

Pratt, James, and Kulsrud William. Corporate, Partnership, Estate, and Gift Taxation 2013. 7th ed. Mason, OH: Cengage Learning, 2012. Print.

Thomson Reuters. "The Most Sophisticated Income Tax Software in the Profession: GoSystem Tax RS." Thomson Reuters Inc., 2014. Web. 29 August 2014 https://cs.thomsonreuters.com/gosystem/
View Full Essay

Offshore Tax Havens by U S

Words: 3756 Length: 12 Pages Document Type: Essay Paper #: 3949701



The other side of this is that the companies have to spend finances in areas of language training or job training when they outsource. However, over the years, many U.S.-based companies haven't been discouraged by these additional costs because the overall costs of outsourcing with the job training session and language teaching and outplacement requirements are still far less when compared to the costs that they would have to endure when they don't outsource. If the overall costs of outsourcing was even marginally close to the costs on domestic hiring then there is a high probability that the overall right of firing of the employers would not be employed as much as it ahs been in the past. Of the negative perception of using the firing right at such an extensive level does create negative images which the company has to spend money to correct and rebuild into positive images…… [Read More]

References

Poor Payers to a Degree," the Economist, June 10, 2004.

David Cay Johnston. "How Offshore Havens Helped Enron Escape Taxes." New York Times. January 18, 2002.

David Cay Johnston. "Tax Inquiries Fall as Cheating Increases." New York Times. April 14, 2003.

Duncan Campbell. "Havens that Have Become a Tax on the World's Poor." Guardian. September 21, 2004.
View Full Essay

Accounting - Alternative Minimum Tax

Words: 813 Length: 3 Pages Document Type: Essay Paper #: 66522941

Naturally, to the extent the AMT applies to the specific segment of taxpayers to whom it was initially addressed, it is serves a beneficial purpose; on the other hand, that benefit must be considered against the unintended consequences and unfairness of its application to taxpayers completely outside the ranks of the very wealthy, particularly at the lower end of that income category. Undesirable Consequences:

The first major potential problem with the AMT is that it does not incorporate inflation at all; as a result, it applies to more and more taxpayers every year despite the fact that their wealth actually remains unchanged during that time. This is particularly important in times of economic recession, especially where income increases fail to keep pace with rising inflation. Whereas the AMT applied to a fewer than 200 households when first implemented in 1970, it currently affects as many as 15% of households earning…… [Read More]

References

Congressional Budget Office. (2004). Revenue and Tax Policy Brief: Alternative Minimum Tax.

Leiserson, G. (2008). The Individual Alternative Minimum Tax: Historical Data and Projections. "http: Brookings Institution.

The New York Times. (2007). Times Topics: Alternative Minimum Tax. (Dec. 6/07).
View Full Essay

SSI Income Analysis the Social

Words: 2001 Length: 7 Pages Document Type: Essay Paper #: 30211876



Sixth, nearly one half of taxpayers in this country do not pay a nickel in federal income tax and that needs to change. There is something to be said of the poor not paying federal income but when households making north of $60,000 are paying nothing, there is something wrong with that. Many people point to the rich as needing to pay more but they've been paying progressively more and more for generations and if shared contribution and shared sacrifice is truly the goal, then everyone who has the means to at least pay a little something, should do so. As it currently sits, the top 1% of all taxpayers pay more than a third of all income taxes. The top five percent pays nearly sixty percent of income taxes. The top ten percent pays more than seventy percent of income taxes. The bottom 50%, on the other hand, pays…… [Read More]

References

NTU. (2012, November 17). National Taxpayers Union - Who Pays Income Taxes?. National Taxpayers Union. Retrieved November 17, 2012, from http://www.ntu.org/tax-basics/who-pays-income-taxes.html

SSA.gov. (2012, November 17). 2012 Social Security tax rate and maximum taxable earnings. Frequently Asked Questions. Retrieved November 17, 2012, from http://ssa-custhelp.ssa.gov/app/answers/detail/a_id/240/~/2012-social-security-tax-rate-and-maximum-taxable-earnings

SSA.gov. (2012, November 17). Contribution and Benefit Base. The United States Social Security Administration. Retrieved November 17, 2012, from http://www.ssa.gov/oact/cola/cbb.html
View Full Essay

Work Opportunity Tax Credit Wotc

Words: 4903 Length: 17 Pages Document Type: Essay Paper #: 69565580

ather than being idle and receiving public benefit, individuals of working age typically prefer completing useful work. Mark P. Altieri, an associate professor of accounting at Kent State University, Kent, Ohio, and Jason A. othman, (2006), an associate at Wickens, Herzer, Panza, Cook and Batista, note a number of enhancements to WOTC in the article, "Surviving Katrina: Tax breaks for victims of the costliest catastrophe in American history."

According to Altieri and othman (2006), in regard to the WOTC - general law, under IC section 51, the WOTC provides motivation for employers to hire economically disadvantaged individuals. These disadvantaged individuals include qualified ex-felons, food-stamp recipients, veterans, summer youth employees, as well as individuals who receive certain welfare benefits (Altieri & othman, ¶ 23). Altieri and othman explain that in the past, the WOTC -- Katrina was expanded to embrace individuals whose principal residence on August 28, 2005, was located in…… [Read More]

REFERENCES

Altieri, M.P., & Rothman, J.A. (2006). Surviving Katrina: Tax breaks for victims of the costliest catastrophe in american history. Journal of Accountancy, 201(2), 58+. Retrieved June 1, 2009, from Questia database: http://www.questia.com/PM.qst?a=o&d=5013771777

Anonymous. (2008). Special tax credit aids Paulding Co. development. Toledo Business Journal.

Telex Communications, Inc. Retrieved June 01, 2009 from HighBeam Research:

http://www.highbeam.com/doc/1P3-1619413051.html Battersby, M.E. (2009). The Memorial Day tax surprise. Metal Center News. Sackett Business
View Full Essay

Economics Taxes How Can Tax

Words: 705 Length: 2 Pages Document Type: Essay Paper #: 55370867

d.).

Presently the government manipulates the books around in order to compensate for any tax cuts that they give. In reality, the vital thing for the government to do is to discontinue spending money. While this is not always reasonable, it is essential to make sure that the people and corporations of the nation can flourish. Tax cuts, when put into practice for long-term consequences, will offer a momentous increase in the market (How Do Tax Cuts Help the Economy, n.d.).

Due to the model of fairness, cutting taxes is by no means an easy task. There are two distinct notions that are at play. These are horizontal equity and vertical equity. Horizontal equity is the scheme that all people should be taxed uniformly. An instance of horizontal equity is the sales tax, where the quantity paid is a proportion of the object being bought. The tax rate remains the…… [Read More]

References

Cloutier, Richard. (2011). Do Tax Cuts Stimulate The Economy? Retrieved from  http://www.investopedia.com/articles/07/tax_cuts.asp 

How Do Tax Cuts Help The Economy? (n.d.). Retrieved from http://www.taxforuminfo.com/how-do-tax-cuts-help-the-economy/
View Full Essay

How the Different Accounting Methods Can Affect a Taxpayers Income

Words: 589 Length: 2 Pages Document Type: Essay Paper #: 22809053

Accounting Methods and Taxpayer Income

Depending on the type and size of company you own, the methods used to conduct your business accounting can vary greatly, and these differences may have significant impact on the eventual amount of income declared to the Internal evenue Service when you file taxes. Sole proprietors and small business owners who have not fully incorporated typically rely on cash-basis accounting, which is the "major accounting method that recognizes revenues and expenses at the time physical cash is actually received or paid out" (Investopedia, 2011). Using this accounting technique is simpler for small businesses that operate on a local level, and allows the business owner to avoid the costs of hiring a professional bookkeeper. Cash-basis accounting also leads to a greater degree of manipulation, in the form of "under-the-table" payments, handshake agreements and deliberate fabrication of expenses. Large companies and corporations opt for the second major…… [Read More]

References

Accrual accounting (2010, May 09). Forbes Financial Glossary, Retrieved from  http://www.forbes.com /sites/forbesfinancialglossary/2011/07/12/accrual-accounting/

Cash basis accounting. (2011, June 21). Investopedia, Retrieved from  http://www.investopedia.com/terms/c/cashbasis.asp?partner=forbes-pf
View Full Essay

Corporate Tax Instructions Mr Pink Owns All

Words: 893 Length: 3 Pages Document Type: Essay Paper #: 81475944

Corporate Tax

Instructions:

"Mr. Pink owns all the shares of XYZ Corporation a subchapter C corp. And leases property to XYZ Corporation. XYZ Corporation has Earnings and Profits of one million dollars for the taxable year 2014 before paying Mr. Pink a salary. XYZ Corporation has cash of $1.2 million and disposable appreciated property with a FMV of $500,000 and a basis of $200,000."

• hat is the best way to split income between XYZ Corporation and Mr. Pink to minimize double tax liability? Consider what may be "Constructive Distributions."

• hat doctrines apply?

A constructive distribution allows members of the board of directors to take payments in ways other than just cash through property transactions of one form or another. For instance, when a company rents its offices from a shareholder and pays in excess of the office's fair market value, the company's rent is considered a constructive dividend…… [Read More]

Works Cited

Leagle. (N.d.). NICHOLLS, NORTH, BUSE CO. v. COMMISSIONER. Retrieved from Leagle.com: http://leagle.com/decision/1971128156cntc1225_11190.xml/NICHOLLS,%20NORTH,%20BUSE%20CO.%20v.%20COMMISSIONER

Leagle.com. (N.d.). Hood V. Commissioner. Retrieved from Leagle:  http://www.leagle.com/decision/2000287115ntc172_1274.xml/HOOD%20v.%20COMMISSIONER 

US Legal. (N.d.). Dividends. Retrieved from U.S. Legal:  http://dividends.uslegal.com/taxation-of-dividends/constructive-disguised/
View Full Essay

Alternative Source for Tax Dollars

Words: 1266 Length: 4 Pages Document Type: Essay Paper #: 61824249

This means that they should have alternative sales taxes imposed. These small increases will result in school districts receiving more income. As the legislature can avoid making dramatic cuts backs from the general fund and will have another source of revenues. This will improve their ability to provide educators with the resources they need. (Balu, 2011)

A good example of this can be seen with a study that was conducted by Balu (2011). She found that this formula has been successful in helping to ensure that school districts are receiving additional financing. Commenting about these shifts, she concluded that this will prevent sudden decreases by introducing another form of revenues for education with her saying, "Districts in states that shifted their tax base for education toward sales and income taxes, received more than 60% of their revenues from the state. They experienced an increase in revenue stability after finance equalization…… [Read More]

References

Balu, R. (2011). Did School Finance Equalization Increase Revenue Instability. SREE. Retrieved from:  https://www.sree.org/conferences/2011/program/downloads/abstracts/159.pdf 

Crawford, C. (2010). Property Taxes in New Jersey. Northeast Business and Economic Association.

Goodspeed, T. (n.d.). The Relationship Between State Income Taxes and Local Property Taxes. National Tax Journal, 2 (2), 219 -- 236.

Toutkoushian, R. (2008). The Impacts of School Funding. Journal of Education Finance, 33 (4), 353 -- 379.

 

 

Related Topics: