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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…
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.
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…
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: http://www.cato.org/pubs/pas/pa416.pdf
Thumbnail sketch of the FairTax a comprehensive plan to replace income and payroll taxes. Retrieved November 15, 2005 from Web site: http://www.fairtaxvolunteer.org/smart/sketch.html
The issue of an Internet sales tax has been at the topic of much debate over the past few years. The issue is a complicated one and the budget crises' facing many states has made it a crucial one. The purpose of this discussion is to examine Internet tax legislation. We will begin by exploring the current status of Texas legislation regarding internet Taxation. We will also investigate the Federal Law regarding Internet taxation. Our research will also discuss the National Governors Association's model legislation to streamline and simplify state taxation. Additionally, we will explore the jurisdiction requirements that allow states to impose sales taxes and the case law that affects states' ability to tax Internet sales.
In 1999 Texas legislation proposed that the state would join the streamlined sales tax project. In recent years the legislation has adopted the practices of the streamlined sales tax…
Goldsmith J.L. - Sykes, A.O. (2001) The Internet and the dormant commerce clause. Yale Law Journal. Volume: 110. Issue: 5. pg 785.
2001) "California's Flawed Case Against Borders Online." E-commerce Tax News. Retrieved July 11, 2003 from, http://www.ecommercetax.com/doc/093001.htm
Kuster, S. And Untermeyer, C. (2001) Internet sales tax legislation could clear state-to-state static. Houston Business Journal. Retrieved July 11, 2003 from, http://www.bizjournals.com/houston/stories/2001/05/21/focus7.html
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…
Adamy, Jane. "Soda Tax Weighed to Pay for Health Care." The Wall Street Journal. May 12,
Klein, Ezra. "The Problem with Corn Syrup. The American Prospect. 2008.
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…
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
To minimize the impact on business and property owners, the tax should be one that they can apply at the consumer level. An excise tax raises the cost of goods, whereas a sales tax does the same thing but forces the consumer to pay. A property sales tax would already be applied at the consumer level.
As a citizen, I will not necessary see benefit from these taxes -- it depends on what the taxes are used for. ith regards to paying other taxes, I am only concerned with my total tax burden. Shifting taxes from one type to another, if it for me is tax neutral, is irrelevant. I would prefer that my taxes are reduced overall, and if these taxes facilitate that, then I would prefer them.
IRS. (2008). Business taxes. Internal Revenue Service. Retrieved February 11, 2010 from http://www.irs.gov/businesses/small/article/0,,id=98966,00.html
IRS. (2008). Business taxes. Internal Revenue Service. Retrieved February 11, 2010 from http://www.irs.gov/businesses/small/article/0,,id=98966,00.html
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
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…
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.
Tax Equity and Fairness
Taxes on property are also known as ad valorem tax imposed on the real value of the estate or other assets that an individual owns. The local government imposes these property taxes and charges are on a recurring basis (Mikesell, 2014). For example, a homeowner either pays their taxes on a yearly basis or gives a monthly fee as part of the mortgage payments. It is worth noting that these taxes are subject to fluctuation basing on the jurisdiction assessment of the property's worth by looking at factors like its market value, condition, location and the changes to the apportioned amount to the various tax recipients. For instance, when residents of a given community vote to have the millage rate increased for their school system, this affects the tax rate on homeowners. Therefore, the tax levied is increased on their properties, and the reverse applies; when…
Laureate Education (Producer). (2008). Budget management functions: Revenue [Video file]. Retrieved from https://class.waldenu.edu
Mikesell, J. L. (2014). Fiscal Administration: Analysis And Applications For The Public Sector (9th ed.). Boston, MA: Wadsworth
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…
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.
The different types of fundraisers are numerous. Some groups choose to hold auctions or raffles in which they make profits off the sale goods that have been donated. Others choose from many different types of activities such as a walk-a-thon or bowl -a-thon. During these events money is raised by donations from supporters based on how many times, or for how long a specific activity is accomplished (What are the Different Types of Fundraisers, 2009). Tele-a-thons are also very popular ways for some nonprofit organizations to raise money.
Fundraising is not always an easy thing to do but it is a very vital function for all nonprofit organizations. It is so vital because this is the way that these organizations obtain the funds that they need to go about doing what their organization was originally set up to do. These campaigns are usually their only source of income. So in…
Fund Development Plan. (2009). Retrieved December 5, 2009, from Florida Philanthropic
Advisors Web site: http://www.floridagives.org/developmentplan.html
Non-profit organizations. (n.d.). Retrieved December 5, 2009, from Cornell University Law
School Web site: http://topics.law.cornell.edu/wex/Non-profit_organizations
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…
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
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
Income before taxes
Federal income tax expense
Net income after taxes
As being revealed in the company statement of income data,…
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…
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
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…
Heakal, Reem. "What is fiscal policy?" Investopedia. October 22, 2008. http://www.investopedia.com/articles/04/051904.asp
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!).
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…
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)
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…
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
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…
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.
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…
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:
unemployment and tax reform on our social structure including theoretical framework on functionalism, social conflict and symbolic framework and so on and so forth. The orks Cited eight sources in MLA format.
Unemployment has long been the cause of ruin of the American society as well as the global social structure. Persistence in unemployment and the related tax reforms have done much harm than have benefited the mankind on this face of earth. There have been several effects of unemployment and tax reforms on our social structure. The passages below of our research paper will look into not only these effects but will also include theoretical framework on functionalism and social conflict. Before we begin our discussion on the effects of unemployment on the social structure as well as on the effects of tax reforms, it is essential that the readers have a look at the precise yet comprehensive…
Social Structure." Encyclopedia Britannica. 2003. Encyclopedia Britannica Premium Service. Retrieved 10 Jul, 2003 at http://www.britannica.com/eb/article?eu=117544 .
Functionalism, Conflict Theory and Symbolic Interactionism. Retrieved 10 Jul, 2003 at http://www.*****/free_essays/4/sociology/functionalism-confict-theory-and-symbolic-interaction.shtml
Social and psychological effects of unemployment. Retrieved July 10, 2003 at http://www.e-resaneh.com/English/Social/Social%20and%20Psychological%20Effects%20of%20Unemployment.html
Saunders P. Direct and indirect effects of unemployment. Paper presented at the Australian National University in the F.H. Gruen Lecture Series on Welfare and the Labor Market: The New Frontier for Reform.
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…
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 .
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…
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/
AUSTALIA It's CABON TAX IN AUSTALIA
Australian Carbon Tax
The term that took the scientific world by storm in 1987 was "sustainable development," a terminology that redefined the perception on economic growth, human development and environmental conservation. Scientists, engineers, policy makers, and a practically all communities need to get involved in meeting human development needs. However, this brings on a series of problems related to sustainability, especially considering that the contemporary society is experiencing a process of regression when taking into account pollution. People presently need to come up with ingenious methods of improving society without damaging the environment. This pursuit for having economic growth without damaging the ecosystem has lead to the design of new means of creating energy, better lifestyle, change in the human behavior, overall a fresh and innovative attitude towards nature and life. But there are challenges to be faced, and most of them come from…
Adams, P.D., Dixon, P.B., Paramenter, B.R., and Peter, M.W., (1991). Prospects for the Australian Economy 1989 to 2029-30: ORANI-F projections for the Ecologically Sustainable Development Working Groups. Final report to the ESD Working Groups, Monash University Centre for Policy Studies
Brennan, G., (2009). Climate change: a rational choice politics view. Australian Journal of Agricultural and Resource Economics, Volume 53, Issue 3, pages 309 -- 326
Cornwell, A. And Creedy, J., (1996). Carbon Taxation, Prices and Inequality in Australia. Fiscal Studies, vol. 17, no. 3, pp.21- 38
Freebairn, J., (2007). Policy Forum: Climate Change: Some Economic Policy Issues Economic Issues with Climate Change. The Australian Economic Review, vol. 40, no. 4, pp. 402 -- 9
This issue is compounded for the self-employed when retail/sales tax is added into the mix as these payments are also required quarterly, not payable when collected. This issue is simply a non-issue for an employed person as the retail/sales tax is again paid quarterly by the employer and the employee deals only with direct transaction, calculations, most of which are done automatically. These additional taxes are collected by the individual self-employed person where they are applicable, which is the majority of U.S. states and are now even collected for some online transactions in certain states, regardless of the funds availability when they are due. So, again this is something the self-employed person must take into consideration on almost a daily basis, i.e. saving collected retail/sales tax whenever it is paid or expect to write difficult checks when taxes come due. Additionally, understanding the sales tax laws in different states where…
Buffington, J. (2005). Managing your cash flow as an independent practitioner. Public Relations Tactics, 12(3), 20.
Bruce, D. (2002). Taxes and Entrepreneurial Endurance: Evidence from the Self-Employed. (cover story). National Tax Journal, 55(1), 5-24.
Federal Tax Current Event
The current epublican leadership race has seen Herman Cain as a front-runner for leadership of the epublican Party and thus, a potential presidential candidate for the 2012 election. One of the main components of his campaign is his proposal of a flat taxation plan for citizens of the United States, known as the "9-9-9" tax plan. This plan proposes to replace the current federal tax code with a flat taxation plan of 9% national sales tax, 9% personal income tax, and 9% corporate tax across the board for all Americans. In the article "Herman Cain's murky 9-9-9 tax plan," the author argues that this plan simply would not fiscally work out and that it would lead to an unfair distribution of the tax burden (Hitzlik, 2011).
Hitzlik argues that flat taxation plans such as the one proposed by Cain tend to not result with their positive…
Hiltzik, M. (October 18, 2011). Herman Cain's murky 9-9-9 tax plan. Los Angeles Times. Retrieved 12 November, 2011 from http://articles.latimes.com/print/2011/oct/18/business/la-fi-hiltzik .
Pennsylvania's Unique Tax Environment
When someone says the word tax or any related form of the word, it makes people cringe. This cringe is for a good purpose. Almost everything we purchase is taxed somehow. Most of those people do not even understand all of the specific taxes that are being taken out of their checks. When comparing between different states, Pennsylvania has some unique features to its taxation system. To begin, it has a personal income tax, adopted in 1971, which is levied at a rate of 2.8%. Business taxes include a corporate net income tax of 9.99%, capital stock and franchise taxes, and taxes on public utilities, insurance premiums, and financial institutions (Braybrooks, et al., 2011). Pennsylvania's 6% sales and use tax exempts essential items like clothing, groceries, and medicines. Local sales taxes are limited to 1%. The state has an inheritance tax and has taken action to…
Braybrooks, M., Ruiz, J. And Accetta, E. 2011. State Government Tax Collections Summary Report: 2010. United States Census Bureau. Accessed: 13 Feb 2012. URL: http://www.census.gov/prod/2011pubs/g10-stc.pdf
Congressional Budget Office. 2011. Options for Changing the Tax Treatment of Charitable Giving. Accessed: 13 Feb 2012. URL: http://cbo.gov/ftpdocs/121xx/doc12167/CharitableContributions.pdf
Whatever plan is introduced (or re-introduced) to the legislature and/or the voters of the state needs to be successfully marketed and promoted, beginning with an effective and appropriate internalizing of the externalities of the situation -- the citizens of Oregon need to be made aware of the real costs of failing to implement an effective tax structure to fund the state's operations. That is, the tax must not only be a successful corrective tax that brings the benefits of certain activities within the state in line with the expenses of programs for state citizens, but the plan must be effectively presented as such as well. Essentially, the price of citizenship is not accurately reflected in the current cost of that citizenship in the form of taxes, and more specifically the price of property ownership, the ability to purchase goods, and the ability to earn income is not well-represented and…
rich should pay more taxes than others requires a certain amount of thought and clarity on some of the words used in the argument. Firstly, what exactly does the word "rich" mean? The idea of being rich has obvious connotations such as having great amounts of money and many valuable possessions, but is that really what is meant in this argument ? The purpose of this essay is to describe and highlight the subjective nature of this argument and how there is not a correct answer.
Richness is a subjective term that can have a varying of meaning depending on where one lives and where they are perhaps travelling. If richness is based upon currency, it is not difficult to alter its value in sweeping changes that arise from traders and brokers. Richness is obviously temporary when viewing it in this way.
The word "should" suggests that the argument is…
The author of this report has been asked to review a situation where a corporation has received unwanted attention from the Internal Revenue Service (IRS) for a few reasons. Among those reasons are income that is deigned to be a de facto dividend, stock redemptions that are improper and a rental loss situation. The goal across the board is to devise a compensation and tax approach that will prevent the IRS from claiming tax avoidance or other such things as well as a plan that limits tax implications and higher costs for the firm. While it is sometimes rankling and maddening when the IRS makes such moves, their reaction is a little predictable given the facts involved.
The IRS taking issue with the compensation is a little predictable, and for a few reasons. First, it is presumed by the author of this response that the company…
prediction comparison vote real members House Representatives a law. 1. You choose real members House Representatives, Republican Democrat. (There 435 members House, find interests .
A tax on obesity as seen by Republican member of the U.S. House of Representatives Bill Cassidy and Democratic member of the U.S. House of Representatives James McGovern
Obesity has come to be a significant issue in the United States today, with more and more individuals displaying the malady's symptoms. As a consequence, the authorities have gotten actively involved in trying to control it through installing tougher regulation and by implementing programs meant to educate people with regard to attitudes they should take toward the concept. hile agreeing about the significance of this issue, American politicians seem to have different opinions on the matter -- some believe that the solution stays with tougher legislations while others consider that it all comes down to education and…
"Bipartisan Bill Launched to Treat and Reduce Obesity," retrieved July 13, 2014, from http://conscienhealth.org/2013/06/bipartisan-bill-launched-to-treat-and-reduce-obesity/
"Rep. Jim McGovern's 4th "End Hunger Now" Speech: The Obesity Paradox -- Video," retrieved July 13, 2014, from http://www.hhe.tv/rep-jim-mcgoverns-4th-end-hunger-now-speech-the-obesity-paradox-video/
"Text of the Treat and Reduce Obesity Act of 2013," retrieved July 13, 2014, from https://www.govtrack.us/congress/bills/113/hr2415/text
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%…
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.
Tax Code 1231, 1245, 1250, 291
A Section 1231 asset is an asset that is non-capital, that it may receive capital gain treatment. To be a Section 1231 asset, the asset must be personal or real property used in a trade/business that has been owned for a year -- for example, a piece of equipment like a tractor. Equipment is treated the same whether it is owned by a sole proprietor or a corporation. So if it were purchased for $20,000, sold for $50,000, with a depreciation of $4,000, with a $16,000 basis, the gain would be $34,000. If the tractor were held as a 1231 asset, the gain would be the same regardless of whether you were a sole proprietor or a corporation. The gain would be counted as an ordinary income -- and the $4,000 depreciation portion of the $34,000 could be counted as Section 1245 gain (ordinary…
Anderson, Ken; Pope, Thomas. Prentice Hall's Federal Taxation 2015: Corporations,
Partnerships, Estates, and Trusts. NY: Prentice Hall, 2015. Print.
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.
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…
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].
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…
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.
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…
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.
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,…
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.
9. eturns - defines the condition under which the product can be returned, what procedures must be used, advance notice requirements, shipping issues and the like.
10. Damages - defines procedures for reporting, estimating and recovering damages if suffered by any party. This may include penalty payments with a defined upper limit for recovery.
11. Governing Law - defines the location where litigation will occur in the event that a breach of contract suit must be pursued through the court. The Mooters interest: This contract component would have defined Britain or France as the court for litigating recourse and recovery. With regard to the Mooters situation, different jurisdictions and applicable laws apply if this suit progresses to court.
The following contract components could have been included in the Mooters' sales contract; however, given its likely low monetary exposure, these contract components are likely unnecessary.
Entire Agreement - defines that no…
Black's Law Dictionary. (1990). St. Paul, MN: West Publishing Co.
UN Convention on Contracts for the International Sales of Goods. (1980). [Online]. Available: http://www.uncitral.org/pdf/english/texts/sales/cisg/CISG.pdf.
Uniform Commercial Code - Article 1. (2008). Cornell University. [Online]. Available: http://www.law.cornell.edu/ucc/1/ .
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.
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…
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.
Rich Should Be Taxed More
In every free market economy, there is a particular tax system which is implemented and has to be followed by the citizens of the country but every tax system comes with its advantages and disadvantages. The taxes that are implemented may be in the form of direct taxes such as the earnings of an individual, inheritance and other such incomes, while the indirect tax is levied on the purchases, sales, etc.
The regressive tax system is whereby the amount of tax that a person has to pay decreases as the income of the individual increases. This is a burden on the poor in the society who are crushed under the burden of the taxes because the tax payments take up most of their earnings as a result. A progressive tax system on the other hand implies that a person has to pay more in taxes…
Mccaffery, Edward J. Fair not flat: How to make the tax system better and simpler. University of Chicago Press, 2002.
Messere, Ken. The Tax System in Industrialized Countries. Oxford University Press, 1998.
Yang, Ming Yu. "The applicability of the progressive tax from the perspective of contribution theory." International Journal of Management, 2003.
The United Kingdom is one of the largest markets in the world for Starbucks, with over 700 stores, by far the largest in Europe. The company ran into a scandal, however, when it was revealed that the company was not paying taxes in the UK, but was rather paying the taxes in the Netherlands and Switzerland, which has a much lower tax rate. Some politicians decided to make a name for themselves by attacking the foreign company (Starbucks' major competitors in the UK are local chains Costa and Caffe Nero, both domestic companies). The ensuing negative publicity hurt Starbucks' sales, which fell below ?400 million for the first time since 1998 (Campbell, 2014).
At issue is the fact that the UK signed into membership with the European Union. The EU established rules that allowed companies to headquarter in one European country and operate subsidiaries in another…
Bergin, T. (2012) How Starbucks avoids UK taxes. Reuters Retrieved December 18, 2014 from http://uk.reuters.com/article/2012/10/15/us-britain-starbucks-tax-idUKBRE89E0EX20121015
Burnett, J. (1999). A strategic approach to managing crisis Public Relations Review. Vol. 24 (4) 475-488.
Campbell, P. (2014). Sales slide as Starbucks feels tax backlash. The Daily Mail. Retrieved December 18, 2014 from http://www.dailymail.co.uk/news/article-2612668/Sales-slide-Starbucks-feels-tax-backlash-Coffee-chain-axes-six-shops-14m-drop-business-past-year.html
Campbell, P. (2014, 2) Anger as Starbucks boss says may not pay UK tax for up to three years. Daily Mail Retrieved December 18, 2014 from http://www.dailymail.co.uk/news/article-2856284/Starbucks-chief-reveals-coffee-giant-not-pay-normal-tax-THREE-YEARS.html
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…
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
Government Should Tax Spending Vice Income
A "sin tax" is a specific type of tax that is levied on certain types of goods and services that the government has deemed unnecessary for individual consumption or action, and that society as a whole considers undesirable, but is nevertheless popular with many citizens. Predominant examples of this are alcohol, tobacco, and gambling. Alcohol and tobacco, for instance, move from an economic to a social issue because of numerous health and behavioral issues that result from use, and have a cost to society. Because of this, it is valid that the government be able to tax certain substances or activities.
The idea of sin taxing is designed not to punish, but to suggest that certain activities are not best for society: alcohol because it causes traffic issues, crime, social ills; tobacco because of the medical and productivity costs; and gambling because of its…
Ensuring Solutions to Alcohol Problems. Ensuring Solutions. (2011). Web. http://www.ensuringsolutions.org/
Hoe, K. The Role of Excise as a Sin Tax. The Star Online. . (January 19, 2010). Web. http://biz.thestar.com.my/news/story.asp?file=/2010/1/19/business/5496890&sec=business
Williams, R.; Christ, K. Taxing Sin. Mercatus Center at George Mason University. (July 2009). Web. http://mercatus.org/publication/taxing-sin
Soda Tax in California
The issue of soda tax, or the implementation of rules that guide the soft drinks industry in terms of guiding the consumer on the content of the soda which often is at the expense of the manufacturer, is not new to California. New York City had a similar bill that was passed but later on shelved due to a court ruling that favored the soft drinks manufacturers who pressed for a ruling out of the directive as unconstitutional. There were three consecutive appeals that failed hence the hopes for that regulation that banned sale of big size bottles of soda among other regulations seem to fizzle out flat (Matias C., 2014).
It is the same spirit as that of Bloomberg in New York that state senator Bill Monning has put forth a proposal that would require the sugary drinks for instance the sports drinks that are…
Calefati J., (2014). Health warning labels proposed for sodas, other sugary drinks sold in California. San Francisco Mercury News. Retrieved November 28, 2014 from http://www.mercurynews.com/california/ci_25137374/health-warning-labels-proposed-sodas-other-sugary-drinks
Bernstein S, (2014). California lawmaker proposes warning labels for sugary drinks. Retrieved November 28, 2014 from http://www.businessinsider.com/r-california-lawmaker-proposes-warning-labels-for-sugary-drinks-2014-13
Esterl M., (2014). Berkeley Voters Approve Tax on Sugary Drinks. Retrieved November 28, 2014 from http://online.wsj.com/articles/berkeley-voters-approve-tax-on-sugary-drinks-san-francisco-ban-falls-short-1415189224
Matias C., (2014). New York City's Soda Ban Fizzles Out For Good. Retrieved November 28, 2014 from http://www.huffingtonpost.com/2014/06/26/soda-ban-new-york-struck-down-bloomberg_n_5533197.html
Globalization and Taxes
Competition for Taxes
One of the most difficult issues regarding the state regulation of their tax relations in regard to international business is the presence of various "tax havens" that are present across the globe in today's modern economy. According to some estimates, as much as half of the world's stock of money either resides in tax havens or passes through them (Palan, 2002). The term tax haven has been widely used since the 1950s; yet there is no consensus as to what it means (Palan, Murphy, & Chavagneux, 2010). The influential U.S. Treasury's Gordon eport concluded: there is no single, clear, objective test which permits the identification of a country as a tax haven . Corporations and private businesses now have a plethora of ways to reduce their tax liabilities. Globalization has exacerbated this problem even further. The mere presence of these various tax shelters…
Bhagwati, J. (2004). In Defense of Globalization. New York: Oxford University Press.
Dyreng, S., Lindsey, B., & Thornock, J. (2011, April 30). Exploring the Role Delaware Plays as a Domestic Tax Haven. Retrieved from Social Science Research Network: http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1737937
Friedman, T. (2005). The World is Flat. New York: Farrar, Straus, and Giroux.
Kanter, J. (2015, October 21). E.U. Orders 2 Nations to Recover Taxes From Starbucks and Fiat. Retrieved from The New York Times: http://www.nytimes.com/2015/10/22/business/international/starbucks-fiat-eu-tax-netherlands-luxembourg.html?_r=0
Smiths to Minimize Their Total Tax Liability
Mr. and Mrs. Smith's concerns about their future income and estate tax bills are important because of their need to engage in tax planning, which can be described as organizing personal financial affairs in order to lessen taxes. In light of their concerns and current situation, there are several recommendations or ways with which the Smiths can reduce their future income and estate tax bills. Therefore, your advice to them on tax planning should be based on considerations of these various recommendations in light of their advantages and disadvantages in addressing their concerns.
One of the ways through which the Smith's can minimize their total tax liability is through giving annually, which will help lessen future estate taxes. As of 2015, the federal estate gift and estate tax exemption amount was $5.43 million, which implied that taxable estate exceeding this amount would be…
Bischoff, B. (2015, March 5). 5 Ways to Give Your Home to Your Children Tax-Free. Retrieved June 29, 2017, from http://www.nextavenue.org/5-ways-give-your-home-your-children-tax-free/
First Republic Investment Management. (2017, March 20). Gifting to Family Members: Pitfalls and Benefits. Retrieved June 29, 2017, from https://www.firstrepublic.com/all-articles/life-and-money-plan-your-legacy/gifting-to-family-members-pitfalls-and-benefits
Kohler, M.J. (2015, June 18). Why You Should Hire Your Kids This Summer. Retrieved June 29, 2017, from https://www.entrepreneur.com/article/223968
Massachusetts Financial Services Company. (n.d.). Minimize Taxes with Estate Planning and Gifting. Retrieved June 29, 2017, from https://www.mfs.com/wps/FileServerServlet?servletCommand=serveUnprotectedFileAsset&fileAssetPath=/files/documents/heritage/hp_epgift_flye.pdf
In Pennsylvania taxation is a huge issue, much like in the rest of the United States. arring factions on either side of the political agenda work to either raise or cut taxes within a given year. In times of economic crisis, such as is occurring in the United States at the present has forced citizens and government officials to reexamine taxation practices in the hopes of overturning the depression. In additional to federal taxes, businesses and individuals of the U.S. are required to pay taxes to the state and to their local communities (Financing page 458). State taxation can be extraordinarily high. It has been proven that many states have higher corporate tax rates than several countries of the world. hen comparing Pennsylvania to other states in the country, it becomes apparent that the current tax rate is exorbitant and putting a great deal of pressure both on…
"Financing Government Expenditures."
"The Tax Foundation: Pennsylvania." (2009). Retrieved from http://www.taxfoundation.org/taxdata/show/477.html
Business Plan for a Financial Divorce Software
Business Plan Divorce Software
Business Plan relating to the Sales of a new Financial Divorce Software.
Business Plan relating to the Sales of a new Financial Divorce Software
Keys to Success
Legal Form of Ownership
Location and Facilities
Products and Service
Ps of Marketing
Financial Statements and Projections
evenue and Cost Estimate
Forecasted Profit and Loss Statement
Forecasted Balance Sheet
Financial planning is involved in every aspect of life. Individuals and businesses have to formulate their daily, monthly, and yearly budgets in order to achieve a balance between their incomes and expenditures.…
Association of Divorce Financial Planners, (2012). Divorce Financial Planning. Retrieved on July 7th, 2012, from
Blythe, J. & Megicks, P. (2010). Marketing Planning: Strategy, Environment and Context, 3rd Edition. U.K: Prentice Hall
Cadle, J., Paul, D., & Yeates, D. (2010). Business Analysis, 2nd Edition. Swindon: British Informatics Society
Francis, P. (2010). Creating the Marketing Executive of the Future Using Key Deming Principles, Journal of Executive Education, 9 (1): 127-138
Australian Tax on Wine
usiness Submission - Australian Tax on Wine
With the Australian government seeking to impose additional taxation upon the use and sale of wine, there have been many outcries of indignation arguing how this would affect the Australian wine industry, and eventually the Australian economy. However, what needs to be considered are the consequences and the public cost of continuing with the discounted taxation to which wine makers in Australia are currently subjected to. The effect on the Australian GDP needs to be taken in to account with the harms that alcoholism in the increasingly youth population is set to unleash, if made available readily and at subsidized prices.
The risks and problems that have arose from the increased alcohol consumption by the Australian public in recent years, especially the young generation, point towards a possible increase in the health deterioration of most Australians while also impacting…
ABS. (2013, February 22). Australian Wine and Grape Industry, 2011-12. Retrieved from Australian Bureau of Statistics: http://www.abs.gov.au/ausstats/[email protected]/mf/1329.0
Anderson, K. (2010, May). Reforming taxes on wine and other alcoholic beverage consumption. Wine Economics Research Centre Working Paper No. 0810 . Australia: University of Adelaide.
Andrews, T. (2013). Stop the wine Supertax! Retrieved from Australian Taxpayers' Alliance: https://www.taxpayers.org.au/nowinesupertax/
Government, A. (2011). Australian National Preventive Health Agency. Retrieved from australia.gov.au: http://australia.gov.au/directories/australia/anpha
University has offered its professor $200,000 in order to relinquish tenure and resign. In particular, the aspect to consider is the tax consequence of such compensation. The professor's standpoint is that tenure should be treated as an intangible capital asset, and relinquishing tenure ought to be a long-term capital gain. The main tax issue in this case is whether the relinquishment of tenure encompasses a sale or interchange of a capital asset, which qualifies to be treated as long-term capital gains or should it be treated as ordinary income. The paper will look at cases that have addressed this issue and come up with different ways in which this issue should be treated.
This particular issue was directly addressed in the Foote vs. Commissioner case. The ruling made by the taxation court implied that the tenure does not classify as a capital asset and therefore the relinquishment of tenure by…
Everett, J. O., Raabe, W. A., & Gentile, J. (2005). Tenure Buyouts: The Case for Capital Gains Treatment. The ATA Journal of Legal Tax Research,3(1), 78-9.
Leagle. (2016). Merrill J. Foote v. Commissioner, 81 T.C. 930 (1983). Retrieved 10 July 2016 from: http://www.leagle.com/decision/1983101181betc930_1955/FOOTE%20v.%20COMMISSIONER#
For instance, in a hot market, with a highly desirable home, For Sale By Owner may be the most profitable option, foregoing any realtor fees, and retaining much of the selling price. However, if something goes wrong, this equation could quickly turn to favor the protection of a realtor. The following chart summarizes the advantages and disadvantages of both selling methods. It uses a $300,000 home and several assumptions to explore the feasibility of both selling options. This scenario will assume that the home is already paid off and there is no mortgage. It will also assume that all taxes are paid and that no litigation results from the sale. It will also assume that the home needs no outstanding repairs as a result of the sale.
Fig.1. Sale by Realtor
Asking price of home
Realtor fees (avg. 6%)
Home Owner's arranty…
KeytLaw. Affordable Fixed Price Legal Services. 2009.
< http://www.keytlaw.com/az/services.htm >. Accessed May 1, 2009.
ListByOwnerOnMLS.Com. List on MLS, Flat Fee MLS Listing. 2009.
< http://www.listbyowneronmls.com/?location=Google >. Accessed May 1, 2009.
The production and sale of alcoholic beverages contribute a small share in national product in the United States and in other advanced economies. However, the damaging effects of alcohol consumption on health and safety constitute a very significant economic burden, reducing our overall standard of living. Chronic heavy drinking causes organ damage that result in disability and early death. Other possible consequences include cognitive impairment, addiction, reduced productivity, neglect of family responsibilities, and birth defects. The acute effects of alcohol abuse are still more costly: traumatic injury and property damage from accidents, criminal victimization, domestic violence, unwanted sexual encounters and venereal diseases, and hangover. In sum, alcohol is not just another commodity. Around the world, historically and currently, public concern about the consequences of excess alcohol consumption for individual health and community well-being has been incorporated in cultural norms, which are often reinforced by private rules and government…
B.Tucker, I. Survey of economics. In I.B.Tucker.
Frank J.Chaloupka, M.G. The Effects of price on Alcohal Consumption and Alcohal Related problems.
Frank J.Chaloupka, p. G. (n.d.). National institute on Alcohal Abuse and Alcohalism. Retrieved from The Effects of Price on Alcohal Consumption and Alcohal related problems: http://pubs.niaaa.nih.gov/publications/arh26-1/22-34.htm
J.Moore, P.J. (n.d.). Health Affairs. Retrieved from The Economics of Alcohal Abuse And Alcohal Control Policies: http://content.healthaffairs.org/content/21/2/120.long
Are you or your spouse self-employed or own a business?
What kinds of income do you and your spouse have?
What kind of deductions do you and your spouse have?
Was there any out of pocket medical expenses?
Do you plan to itemize those deductions?
Do the children work?
Do the children file income tax returns?
Do the children live with you?
Did you pay more than 50% of the children's support?
Do you pay more than 50% of your fathers support?
What was the fair market value of the inherited property at your father's death, or when it was given?
What kind of retirement accounts do you and your spouse have?
What kinds of investments do you and your spouse own?
Do the children have education expenses you paid for?
Options in reducing taxes on adjusted gross income include starting a work 401K, or increasing the…
EBIT is $98,500 in this case. Now to find total interest, you have to find the interest rate and multiply it by the total loan. The business requires $565,500 of assets, so let us set our baseline at that. Multiply that by .075 (the interest rate) and one gets 42,412.5 total interest payable (in one year). Divide EBIT by total interest payable, and you get 2.3. Now the company needs to increase the TIE by decreasing the interest earned.
Simply set the total interest payable (the only changing variable) to x to get 98,500/x = 4.0. Divide by zero, divide by four, and you get $24,625 total payable interest. At 7.5%, the total loan would be $328,333. The debt ratio would then be $328,333 divided by total assets, 565,000. Which results in a .5 debt ratio.
3) LeCompte Corp. has $312,900 of assets, and it uses only common equity capital…
elling Human Organs: The Ethical Issue
elling body transplants is one of the latest ventures that entrepreneurs have devised. ome see it as servicing a public good, whilst others perceive it as one more example of capitalism at its worst.
Barry Jacobs is an example of an international broker for bodily parts whose business involves matching up kidney "donors" with patients needing kidney transplants. The donor receives a magnanimous paycheck; the recipient receives a healthy kidney, and Jacobs, himself, profits by business in worse ways (Chapman, 1984). Jacobs and other advocates of organ-selling see this business as filling a necessary void. Approximately, 100,000 organ transplants are needed per annum, and only an annual 10,000 are performed due to the deficiency of matching organs. Biomedical breakthroughs have increased the success of these operations, but the procedures cannot always be accomplished due to depletion of stocks. People are simply not willing to…
Annas, GJ (1984) Life, Liberty, and the Pursuit of Organ Sales, Hastings Center Report, 14, 22-23.
Chapman, FS (1984) The Life and Death Questions of an Organ Market, Fortune 108-118.
Borna, S (1987) Morality and Marketing Human Organs, Journal of Business Ethics, 6, 37-44.
All products have to be returned in the original packaging and be in the same condition that they were in when the customer got them. The return may be rejected, or costs deducted for missing parts, non-original packaging, abuse, misuse or user negligence (Toshiba Laptops, 2010).
If I were to buy this computer and wish to return it not only would I be responsible for the shipping costs to send it back there is a chance that it would be rejected by the company. As long as the product is returned in the original packaging and in the same condition as I received it then I would be given a full refund minus any shipping costs that I had originally paid. This is basically saying that if I were to receive the computer in good working condition and would then decide that I did not like it or want it…
Toshiba Laptops. (2010). Retrieved May 19, 2010, from Toshiba Web site:
UCC: uniform commercial code. (2004). Retrieved May 19, 2010, from Cornell University Law
McLure, C.E. (1997). Electronic commerce, state sales taxation, and intergovernmental fiscal relations. National Tax Journal, 50(4), 731-750.
This study takes place within the context of a marketplace that is that is increasing utilizing electronic commerce as a way to facilitate transactions between vendors and consumers. Taxation in regard to electronic commerce is a complicated situation, which resulted in some confusion and uncertainty for tax administrators and tax payers alike.
The aim of the study by McLure (1997) was to explore the implications associated with electronic commerce as it relates to tax administration. A review was conducted in order to synthesize information with regard to this issue in order to devise a proposal for a solution with regard to taxation and electronic commerce.
Design: This examination was conducted as a systematic review broken down into five succinct sections. The first section, the introduction, presented the situation under investigation, in particular the…
McLure, C.E. (1997). Electronic commerce, state sales taxation, and intergovernmental fiscal relations. National Tax Journal, 50(4), 731-750.
Marijuana Use and Laws Relating to Marijuana
The difference between laws regarding marijuana in the 1950s and 1960s and public attitudes (and usage) regarding marijuana today is striking. Usage, laws, and attitudes regarding marijuana (or cannabis) have dramatically changed over the past 40 or 50 years. This paper will use data and journalistic research to present the huge changes in laws, usage, and public attitudes as regards the issues surrounding marijuana.
CEDRO -- Center for Drug Research, University of Amsterdam (Library Data)
According to research conducted by the Center for Drug Research at the University of Amsterdam, the first empirical survey on the use of marijuana was conducted in 1971. It was launched by the "Shafer Commission" (under the auspices of the National Commission on Marihuana and Drug Use) and it conducted what is believed to be the very first in-depth survey of the American general population on drug use…
Boyette, C., and Wilson, J. (2015). It's 2015: Is weed legal in your state? CNN. Retrieved
April 11, 2015, from http://www.cnn.com .
Harrison, L.D., Backenheimer, M., and Inciardi, J.A. (1996). The Nature and Extent of Marijuana Use in the United States. Retrieved April 11, 2015, from http://www.cedro-uva.org .
Hughes, T. (2015). Colo. Pot users helping build schools with tax dollars. USA Today.
At the completion of these three-month Employee Development Workshops, trainers and supervisors will meet with the sales clerks to go over their experiences, with a review in hand and asking for input from the sales clerks as to how to make their job more efficient and rewarding.
Supervisors who work with employees on a daily basis must realize that training does not stop when the three-day Training and Orientation Program is completed, but continues on the job, as personnel deal with customers in many different situations. Local school are encouraged to work with personnel and help them learn new techniques regarding sales and customer relations. In return, the Department Store will look for employees from among their graduates.
New Sales Personnel will be encouraged to train on their own outside of work in order to improve their position and pay. Unions and professional associations sometimes offer training programs to help…
Kelly, Ruth (2008) Dream big,. School-To-Careers Grant from the NJ Department of Education. Retrieved June 27, 2009 from http://www.emerson.k12.nj.us/staff/rmkelly/Custom/Classwebpages/DreamBig/GroupC/JobPages/CashierC.html.
Occupational Outlook Handbook, 2008-09 Edition, U.S. Bureau of Labor Statistics, Significant Points. Retrieved June 28, 2009 from http://stats.bls.gov/oco/ocos116.htm .
Marketing and Increasing Profits / Marketing Plan: Vet Life Apparel
Sales and Profits
Vet Life Apparel
Vet Life Apparel, based in the Wilmington NC is owned and run by two Marine veterans Corey and Kevin, who after completing their active duty service and having participated in a number of combats decided to venture into the private sector. Vet Life is creative and full of purpose. This is why it will always give you something to wear and give the veterans community something to be proud of. Vet-Life raises awareness about PTSD, helps the homeless veterans get off the street, and helps the disabled have access to living conditions through nonprofit charities (Vet Life 2016).
The objective of this report is to discuss a marketing plan that can help the company increase its overall sales.
Glass door. (2015). Companies in Wilimgton, NC, U.S.. Retrieved from https://www.glassdoor.co.in/Reviews/wilmington-reviews-RCH_IL.0,10_IM932.htm?&countryRedirect=true on 6th January, 2016
Howard, J. (2015). Top 5 Trends in Apparel Retail for 2015. Digital marketing Magazine. Retrieved from http://digitalmarketingmagazine.co.uk/digital-marketing-lead-generation/top-5-trends-in-apparel-retail-for-2015/1610 on 6th January, 2016.
Inc. (2012). Top Retail Companies on the 2011 Inc. 5000. Retrieved from http://www.inc.com/inc5000/list/2011/industry/retail / on 6th January, 2016.
MBASkool. (2015). Zodiac Clothing SWOT Analysis, USP & Competitors. Retrieved from http://www.mbaskool.com/brandguide/lifestyle-and-retail/2425-zodiac-clothing.html on 6th January, 2015.
CVS enames Itself CVS Health as it Ends Sale of Tobacco Products
(1) Who are the major winners and losers in this story? Why do you think so?
There is a mix of winners and losers in this story and some parties could be considered both. For example, CVS is gaining a lot of support for its new focus on health, but it also does so at the expense of revenues. The video mentions that CVS's revenue will decrease from the organization stopping the sale of tobacco products at its retail chains.
The consumers could also be considered both winners and losers. The video mentions one individual who states that he will simply have to walk across the street to buy his cigars. However, other tobacco customers could be more significantly inconvenienced and have to travel further to buy tobacco products. However, depending on the perspective, some would argue that…
Boughton, J. (2014, January 16). Reflecting on the history of smoking cessation. Retrieved from MedPage: http://www.kevinmd.com/blog/2014/01/reflecting-history-smoking-cessation.html
A sales tax is particularly regressive because low income people spend a greater percentage of their income. They might spend 100% of their income, which means they would pay a sales tax on all of that money. A wealthy person will spend more in terms of dollars on a sales tax, but will also not spend 100% of his or her income. Some of that income will be saved, meaning that not all of the wealthy person's income will be subject to this tax.
For poor people a higher portion of income will be taxed, and there is also less margin for tax increase in their budgets. A wealthy person can afford to pay a little more tax and still have a roof over his or her head, and food on the table. At lower income levels, even a moderate sales tax like 5% is going to put those things…
Investopedia. (2012). Regressive tax. Investopedia. Retrieved November 28, 2012 from http://www.investopedia.com/terms/r/regressivetax.asp#axzz2DYg31VBU
McKinnon, J. (2011) Huckabee presses for national sales tax. Wall Street Journal. Retrieved November 29, 2012 from http://blogs.wsj.com/washwire/2011/07/21/huckabee-presses-for-national-sales-tax/
Montgomery, L. (2009). Once considered unthinkable, U.S. sales tax gets fresh look. Washington Post. Retrieved November 29, 2012 from http://www.washingtonpost.com/wp-dyn/content/article/2009/05/26/AR2009052602909.html