1516 words - 7 pages
Department of the Treasury—Internal Revenue Service
U.S. Individual Income Tax Return
, 2011, ending
OMB No. 1545-0074 , 20
IRS Use Only—Do not write or staple in this space.
For the year Jan. 1–Dec. 31, 2011, or other tax year beginning Your first name and initial
See separate instructions.
Your social security number Spouse’s social security number Apt. no.
If a joint return, spouse’s first name and initial
Home address (number and street). If you have a P.O. box, see instructions. City, town or post office, state, and ZIP code. If you have a foreign address, also complete spaces below (see
1433 words - 6 pages
Tax deductions are related to the legislative grace and the ability-to-pay concept. 2 Restrictions:
1. Only deductions allowed by the tax law may be subtracted to compute taxable income. Congress allows deductions for the costs of earning income and certain expenditures.
2. A deduction is allowed for an item only if all requirements are satisfied.
Business Expense: the expense must have a business purpose that is unrelated to its tax effect.
Gross Income: Only the excess of an individual’s capital investement. The deduction for an item may not exceed the cost.
Basis: The cost of an asset or an expense. Represents the max amt of an expenditure that can be deducted as a recovery
2370 words - 10 pages
This report details research about flat income taxation for the Governor of California, Mr. James Cash. The research encompasses the advantages and disadvantages of flat income taxation, and how such a system would impact the economy of California. The report ends with possible responses to critics and how a flat income tax could help revive the California economy.
A flat income tax for California offers the state many advantages over its current system:
• Flat tax would decrease complexity, therefore reducing administrative expenses and increase tax compliance
• Flat taxes create a risk-averse environment, reducing the volatility of the current progressive system
4868 words - 20 pages
Solutions for Questions and Problems – Chapter 1
SOLUTIONS FOR QUESTIONS AND PROBLEMS
Chapter 1 – The Individual Income Tax Return
Solutions for Questions and Problems – Chapter 1
CHAPTER 1 THE INDIVIDUAL INCOME TAX RETURN Group 1 - Multiple Choice Questions 1. 2. 3. 4. 5. 6. D D A C B C (LO 1.1) (LO 1.2) (LO 1.3) (LO 1.3) (LO 1.3) (LO 1.4) 7. 8. 9. 10. 11. 12. C E C C B B (LO 1.5) (LO 1.6) (LO 1.6) (LO 1.6) (LO 1.6) (LO 1.7) 13. 14. 15. 16. 17. 18. B E A E C D (LO 1.7) (LO 1.8) (LO 1.8) (LO 1.8) (LO 1.8) (LO 1.10)
Group 2 - Problems 1. a. Raising revenue to operate the government. b. Furthering economic goals such as reducing unemployment. c. Furthering
1758 words - 8 pages
The American Revolution
American History 2010
In regards to the numerous successful Revolutions that have occurred, they all
share in common a broad general pattern, causes and characteristics. The
American Revolution to a certain extent aligned with this broad pattern and had
some identical causes and characteristics. In regards to the preliminary and
advanced symptoms of revolutions, the American Revolution exhibited
characteristics of discontent and the creation of mobs that was in response to
taxes imposed upon them by the British government. The steps that followed
656 words - 3 pages
Team 2: Defend the asset/liability approach of accounting for inter-period income tax allocation.
The asset/liability method of income tax allocation is balance sheet oriented. The intent is to accrue and report the total tax benefit or taxes payable that will actually be realized or assessed on temporary differences when their respective future taxable or deductible amounts are expected to occur.
The book states 5 arguments:
1. The balance sheet is becoming more important financial statement. Reporting deferred taxes based on the expected tax rates when the temporary differences reverse increases the predictive value of future cash flows, liquidity, and financial flexibility.
1329 words - 6 pages
Income Tax E-Filing – To what extent has it been accepted in Mauritius?
Date of submission:
Table of Contents
* Problem Statement
* Aims and Objectives
* Literature Review
* Research Methodology
* The Gantt Chart
Information communication technology is being integrated to deliver better and convenient public services by the government in various ways under the e- governance program around the world. Filing income tax return online is one such ambitious initiative under e-governance. Tax e-filing has
1440 words - 6 pages
BUSINESS INCOME AND EXPENSES, PART I
Group 1 - Multiple Choice Questions
1. C (LO 3.1) 7. C (LO 3.4) 13. E (LO 3.7) 19. E (LO 3.11)
2. C (LO 3.1) 8. D (LO 3.4) 14. E (LO 3.8) 20. C (LO 3.12)
3. E (LO 3.1) 9. B (LO 3.4) 15. B (LO 3.9) 21. C (LO 3.12)
4. D (LO 3.2) 10. C (LO 3.4) 16. C (LO 3.10) 22. E (LO 3.13)
5. B (LO 3.2) 11. D (LO 3.5) 17. C (LO 3.11)
6. D (LO 3.3) 12. A (LO 3.6) 18. C (LO 3.11)
Group 2 - Problems
1. Assigned for credit.
3. Gross income $50,000
Travel $ 1,000
3,188 miles x $.51 + 3,188 miles x $.555 $ 3,395
Entertainment in total $4,000 x 50
1174 words - 5 pages
· Install the software and click on the "UPDATE" - Good for the Tax Return Problem
· Print lecture notes online and bring them to the class
· Take Home Quizzes
· Assignments are not turned in - reinforce lectures; solutions are online
· Tax is the exaction for the support of the government;
· Tax laws: to help economy; social considerations (old people get credits; blind people; etc.)
· four characteristics of the tax:
no direct relationship between the tax you pay and the benefits you get. e.g. think about income tax and sales tax, you pay them but it does not mean you get direct benefit from it.
taxes are levied on the basis of predetermined
871 words - 4 pages
Explanation: CPA-00785 Becker Explanation
Choice "d" is correct, as a deferred tax liability of $100,000, since tax depreciation exceeds book depreciation. The 40% tax rate for the period(s) the difference is expected to reverse should be used.
Points Received: 8 of 8
Question 2. Question : (TCO B) Mobe Co. reported the following operating income (loss) for its first three years of operations:
Year 1 $ 300,000
Year 2 (700,000)
Year 3 1,200,000
For each year, there were no deferred income taxes (before Year 1), and Mobe's effective income tax rate was 30%. In its Year 2 income tax return, Mobe elected the two
546 words - 3 pages
x) Canon of Functional Efficiency
Classification of Tax :
Tax can be classified into different types based on different angles, which are showing below :
Definition of Assessee :
Generally tax payer called assessee. Assessee is the person on whom tax is levied to pay to the Govt.
According to income tax ordinance 1984, under section 2(7) - Assessee means a person by whom any tax or other sum of money is payable under this ordinance and includes -
a) Person against whom income tax case.
b) Person who is required to file income tax return.
c) Person who desires to be assessed and submit his/her income tax return.
d) Person who is deemed to be an
1314 words - 6 pages
Taxation system in India
India has a well-developed tax structure with clearly demarcated authority between Central and State Governments and local bodies. Central Government levies taxes on income (except tax on agricultural income, which the State Governments can levy), customs duties, central excise and service tax.
Value Added Tax (VAT), (Sales tax in States where VAT is not yet in force), stamp duty, State Excise, land revenue and tax on professions are levied by the State Governments. Local bodies are empowered to levy tax on properties, octroi and for utilities like water supply, drainage etc.
In last 10-15 years, Indian taxation system has undergone tremendous
3715 words - 15 pages
Common Sense Approach to Reforming the Federal Tax System
On February 3, 2013 marked the 100th birthday of the 16th Amendment. The 16th Amendment paved the way for the creation of the federal income tax that continues to this day to have far reaching repercussions on the American tax payer. Before the ratification of the 16th Amendment, the birth of the federal income tax dates back to the Civil War. In order to finance the Civil War, President Abraham Lincoln signed into law Revenue Act of 1861 on August 5, 1861. The Revenue Act consisted of a flat tax rate of 3% on income above $800 and 5% on individuals living outside of the United States. On July 1, 1861 United States Congress
4561 words - 19 pages
Taxable income of a corporation
Correct Answer: differs from accounting income due to differences in interperiod allocation and permanent differences between the two methods of income determination.
Correct Answer: III
Interperiod income tax allocation causes
Correct Answer: tax expense shown on the income statement to equal the amount of income taxes payable for the current year plus or minus the change in the deferred tax asset or liability balances for the year.
The deferred tax expense is the
Correct Answer: increase in balance of deferred tax liability minus the increase in balance of deferred tax asset
1035 words - 5 pages
51. Assume Jack and Jill, 25 and 75 percent shareholders in UpAHill corporation, have tax bases in their shares at the beginning of year 1 of $24,000 and $56,000, respectively. Also assume no distributions were made. Given the income statement above, what are their tax bases in their shares at the end of year 1?
Description | Jack | Jill |
Initial Tax Basis | $ 24,000 | $ 56,000 |
Ordinary Business Income | 10,625 | 31,875 |
Interest Income | 500 | 1,500 |
Dividends | 125 | 375 |
Tax Basis in Stock at end of Year 1 | $ 35,250 | $ 89,750 |
2218 words - 9 pages
Dear Gary and Linda:
I noted several errors in your original 2009 federal income tax return, and I have prepared an amended 2008 federal income tax return, Form 1040X, on your behalf based on the information that you have provided. Please review the amended tax return carefully for any errors and/or omissions prior to signing and dating at the bottom of Form 1040X.
Your original return showed an overpayment of $11,869, and you have received a refund check for this amount. The amended tax return indicates a balance due of $3,819. As a result, you owe a total of $15,688 (the original erroneous $11,869 overpayment, plus the $3,819 amended balance due).
One copy of the amended
632 words - 3 pages
With tax season approaching, I wanted to share information about a tax-advantaged retirement
account that everyone receiving taxable compensation in 2014 can fund. You have until April 15
to make an Individual Retirement Account (IRA) contribution of up to $5,500 1 for the 2014 tax
Accounts and Eligibility
There are two types of IRAs -- Traditional and Roth.
You can make a full Roth IRA (post-tax) contribution if your individual* 2014 Modified
Adjusted Gross Income (MAGI) 2 is less than $114,000 -- or a partial contribution if it’s between
$114,000 and $129,000.
*Married filing jointly:
2014 Roth income limit threshold is between $181,000 and $191,000
527 words - 3 pages
Q: Will the tribe be subject to the federal income tax on the rental payments the client makes to the tribe? (If the rental payments are not taxable to the tribe, the client can try to negotiate a lower rent.)
A: In general, tribes are not subject to any federal income tax.
Q: The tribe does not currently impose any taxes on businesses. Can the tribe, should it decide to do so in the future, impose an income tax on the client’s reservation hotel?
A: Yes. The tribal government has the authority to collect tax revenue and often do so by imposing taxes on nonmembers doing business on the reservation. Like any other government they can freely change the tax laws at their discretion.
5284 words - 22 pages
total government revenue.
· One of the main objectives of taxation is to reduce inequalities in income and wealth.
· In order to ensure the economic growth, the tax system must be so designed as to raise the rates of savings and investments.
· The government not only raises revenue through taxation but it also imposes restriction on the use of certain goods and services.
· In order to protect the local industries from the uneven competition government may provide tax incentives for poor local industries.
· The tax revenue can be used by the government to ensure the economic development of a country.
· Export of products and import activities can be directed in favor of industries through tax
1594 words - 7 pages
Q (a): An investor recently purchased a corporate bond which yields 9%. The investor is in the 36% combined federal and state tax bracket. What is the bond's after-tax yield?(b): Corporate bonds issued by corporation currently yield 8%. Municipal bond of equal risk currently yields 6%, At what tax rate would an investor be indifferent between these two bonds? Thanks in advance
.a- 9%(1 ' 0.36) = 5.76% or 5.8%
b- Corps Bond Yield=(Municipal Yield)/(1- Taxation rate)get an answer of .25 or 25%
Complete Chapter 2 problem, 2-8, p. 79
The Wendt Corporation had $10.5 million of taxable income.a. What is the company¶s federal income tax bill for the year?b. Assume the firm
2262 words - 10 pages
GLOSSARY OF TERMS: CHAPTER 1-GENERAL PRINCIPLES 1.TAXATION - IS THE PROCESS OR MEANS BY WHICH THE SOVEREIGN, THROUGH ITS LAWMAKING BODY, RAISES INCOME TO DEFRAY THE NECESSARY EXPENSES OF THE GOVERNMENT. 2.NECESSITY THEORY -THE THEORY THAT THE EXISTENCE OF GOVERNMENT IS A NECESSITY. 3.BENEFIT-RECEIVED THEORY THE THEORY THAT STATES THAT THERE ARE RECIPROCAL DUTIES OF PROTECTION AND SUPPORT BETWEEN THE STATE AND ITS INHABITANTS. 4. NON-DIVERSION -TAX MONEY COLLECTED FOR SPECIAL PURPOSE MUST BE APPLIED ONLY FOR THAT PURPOSE 5. PERSONAL, POLL OR CAPITATION TAX -TAX OF A FIXED AMOUNT IMPOSED ON INDIVIDUALS RESIDING WITHIN A SPECIFIED TERRITORY WITHOUT REGARD TO THEIR PROPERTY OR THE OCCUPATION IN
1517 words - 7 pages
Every entity at the end of the accounting period will make financial record in order to determine the profit or loss during the period. Any income of the entity must be subject to the tax even though they are having profit or suffering loss. The accounting treatment for income taxes is determined by Australian Accounting Standards Board (AASB) 112 which adopts the tax effect method that incorporates both current and future tax consequences of “transactions and other events of the current period that are recognised in an entity’s financial statements and the future recovery (settlement) of the carrying amount of assets (liabilities) that are recognised in an entity’s statement of financial
1382 words - 6 pages
treats people fairly. Roughly speaking, we want a tax system that taxes on the basis of ability to pay, (p.289).” Anderson goes on to explain that in order to understand how tax systems work one must be able to understand what is taxed. He defines the term tax base as, “the item or activity that is taxed, (p.292).” He gives three examples of tax base. The first example is income tax. Income tax is according to Anderson, “applied to certain forms of income such as wages but not to other forms of income such as interest earned from municipal bonds. The second example is sales tax. Sales tax is according to Anderson, “applied to certain transactions, like the purchase of a good, but not other
2366 words - 10 pages
Operating profit margin 0,95 times 1,21 times
* Effective Tax Rate
We calculate this profitability ratio by dividing the income taxes of the company by her earnings before income tax. This ratio measures …………………..
I am going below to calculate, analyze and compare the effective tax rate for the Mac Donald and KFC companies for the years 2009 and 2010.
Year 2009 Year 2010
Income taxes (ap. ..) $1,796.0+1,060.4 $2,387.0+1,179.1
531 words - 3 pages
$250,000 x .40%= $100,000 tax liability
Question 2. 2. (TCO B) Thorn Co. applies Statement of Financial Accounting Standards No. 109, Accounting for Income Taxes. At the end of Year 1, the tax effects of temporary differences were as follows:
tax assets Related asset
Accelerated tax depreciation ($75,000) Noncurrent asset
Additional costs in inventory for tax purposes
628 words - 3 pages
unless there is a business purpose for using a fiscal tax year, and the Internal Revenue Service approves.
If the S corporation cannot establish a business purpose for using a fiscal tax year, it may be eligible to make the Section 444 election.
C corporation establishes its tax year when it files its first income tax return.
The first tax year must end not more than 12 months after the date of incorporation.
C corporation that is not a personal service corporation may choose a calendar tax year or a fiscal tax year, so long as the tax year selected does not distort income. This allows the corporation to establish a tax year in conformity with its natural business cycle.
C corporations that
595 words - 3 pages
a) No or low taxes on all or certain types of income and capital. The main purpose of an operation involving tax haven is to obtain benefits in taxation, taking advantage of its no or lower taxation. Thus, there may be extremely low or no capital gains or transfer tax, gift, death or estate duties. The difference in the level of taxation between jurisdictions is determinant to decide whether a tax haven should be used and, if so, which one. The no or nominal tax criterion is not sufficient, by itself, to result in characterization as a tax haven. The OECD recognized that very jurisdiction has a right to determinate whether to impose direct taxes and, if so, to determinate the appropriate
2546 words - 11 pages
As a couple is walking down the aisle after they have just been married, the only thing that is probably on their mind is the love that they have for each other. But afterwards, whether simply hours or up to many months later, almost half of those couples will discover something they may not like. They will owe “Uncle Sam” anywhere from a few dollars to more than a thousand dollars more in taxes. The Congressional Budget Office estimates that 43 percent of all married couples pay an average of $1,480 more in taxes each year than single people that earn the same income (Hederman, 2000). This tax penalty is completely unfair to these hard-working Americans that fall into the
1203 words - 5 pages
to: | Mr. & Mrs. John smith |
from: | carol johnson |
subject: | tax issues |
date: | September 29, 2012 |
Dear Mr. & Mrs. John Smith:
After carefully evaluating your tax issues my staff and I have come to the following conclusions on the questions you presented us.
1. John Smith tax issues:
a. How is the $300,000 treated for purposes of federal tax income?
The $300,000 you earned is considered earned income; therefore, it should be reported as gross income on either a Schedule C of your individual income tax return or if you have reported your company as being a LLC, you can file a LLC return.
b. How is the $25,000 treated for purposes of
346 words - 2 pages
Financial Analysis - Income Statement Data
In Thousands 2007 2008 2009
16,325,900$ 18,627,000$ 19,176,100$
16,325,900 18,627,000 19,176,100
9,165,400 10,239,600 10,571,700
7,160,500 8,387,400 8,604,400
- - 596,300
5,028,700 5,953,700 6,149,600
2,131,800 2,433,700 1,858,500
2,131,800 2,433,700 1,858,500
68,100 69,200 98,000
2,199,900 2,502,900 1,956,500
708,400 619,500 469,800
1,491,500$ 1,883,400$ 1,486,700$
#DIV/0! #DIV/0! #DIV/0!
Preferred Stock Dividends
Net Earnings per Share (EPS)
Net Income Before Taxes (NIBT)
Income Tax Expense
Net Income After Taxes (NIAT)
Number of Shares Outstanding
General & Administrative
Net Interest Expense
565 words - 3 pages
are differentA higher rate of tax applies to foreign residents' taxable income and foreign residents are not entitled to a tax-free threshold.You are not entitled to claim the tax-free threshold and tax offsets if you are not an Australian resident for tax purposes. However, there is an exception with seniors and pensioners, zone or overseas forces tax offsets. |
Question 8 Do you want to claim the tax-free threshold from this payer?
Answer yes if you want to claim the tax-free threshold, you are an Australian resident for tax purposes and one of the following
* (1) you are not currently claiming the tax-free
541 words - 3 pages
The most common types of taxes are:
* Income Tax is a tax on all yearly profits arising from property, profession, trades or offices or as a tax on a person's income, profits and the like. The amount levied varies from the income received annually by the taxpayers.
* To those who are not fixed income earners like doctors, lawyer, dentist, accountants, and other professionals pay the Professional Tax.
* Property Tax is imposed on persons with real properties whether acquired, inherited, or donated based on their market value. The best example is the Real Estate Tax, tax on land or building owned.
* Excise Tax is imposed on all produced and sold in the country
1926 words - 8 pages
Tax Deductible Losses
Tax Deductible Losses
Congress has provided taxpayers with the ability to reduce their taxable income by claiming tax-deductible losses for the past several decades. The variety of losses that could be claimed has changed over time in response to wars, economic conditions, political pressures, and legislative changes. This paper will examine the allowable loss deductions, the impact on taxpayers, and the effects of the changes to the tax law.
The issue of tax deductible losses is closely associated with the government's ability to tax income or revenue. Though this may seem an arbitrary issue to modern day Americans, Congress' ability to tax income
629 words - 3 pages
and a recovery of capital I not income. Therefore, the Federal government does not have the power to tax the award.
Whether Murray was compensated for his reputation and his mental suffering is he required to pay taxes for such compensation? If so what amount and how should it be reported on his income tax.
Code Sec 61(a) state “Except as otherwise provided in this subtitle, gross income means all income from whatever source derived, including (but not limited to) the following items:
(1) Compensation for services, including fees, commissions, fringe benefits, and similar items;
(2) Gross income derived from business;
(3) Gains derived from dealings in property;
1311 words - 6 pages
public school will receive government funds.
* Students who are within lower income households receive government support with cheaper loans or scholarships.
For the government to work on these educational and health care systems, they need to raise money since a significant level of money is needed. It must possess viable income to achieve the goal, especially for education and health systems. The government can raise money through the tax system and cooperation with the private sector. Through a well-developed tax system, the government can levy taxes to individuals and businesses properly. In addition, the government will raise money in cooperation with the private sector by
1644 words - 7 pages
You Decide-Week 4
John Smith tax issues:
a. How is the $300,000 treated for purposes of federal tax income?
Mr. Smith, in regards to your $300,000 earnings for the successful litigation of your clients case, this will be treated as current year earnings. The payment fits all three doctrines of income starting with the economic doctrine which states “all income from whatever source derived” IRC Code Sec. 61 (a). The constructive receipt doctrine, outlining constructive receipt of payments, allows us to treat the payment for this current year only even though it was income from a case that lasted two years. “Income is not constructively received if the taxpayer’s control of
1905 words - 8 pages
taxing schemes an income tax was imposed on the wealthy, office holders, and the clergy. A tax on movable property was imposed on merchants. The poor paid little or no taxes.
Charles I was ultimately charged with treason and beheaded. However, his problems with Parliament came about because of a disagreement in 1629 about the rights of taxation afforded the King and the rights of taxation afforded the Parliament.
The King's Writ stated that individuals should be taxed according to status and means. Hence the idea of a progressive tax on those with the ability to pay was developed very early.
Other prominent taxes imposed during this period were taxes on land and various excise
4514 words - 19 pages
According to the investors guide.com direct tax is referred as any tax levy that is both
imposed and collected on a specific group of people or organizations.
Direct Taxes like Income Tax, Wealth Tax etc.,
2- Indirect tax.
Indirect taxes are collected from someone or some organization other than the person or
entity that would normally be responsible for the taxes.
Indirect Taxes like Service Tax, VAT etc.,
Investors guide as that, differentiate between direct and indirect tax are more complicated.
Because, there legal and economic view different. In a legal sense, the meaning of direct and
indirect taxes changes so that a direct tax, according to the U.S. Constitution, applies only
1523 words - 7 pages
unemployment (Dutta, 2006).
Taxes can affect many other things besides net income and Gross domestic product. Taxes can affect government spending, unemployment rates, investing, and even consumer prices. Government spending is always an issue in today’s economy. The government runs off of tax money amongst other sources of income. To raise taxes as mentioned earlier could have one of two impacts on government spending. If the tax rate is too high many entrepreneurs and corporation’s see no need to expand. This not only affects unemployment rates, but also the government’s tax income. With the government receiving less income one of two things will occur, either government will have to spend
1975 words - 8 pages
services * Financial accounting for income taxes * Tax controversy services * Advisory and consulting services Compliance services As businesses expand operations into new markets the complexity of managing tax risks and complying with reporting requirements multiplies. Our globally-managed tax compliance framework enables Deloitte’s tax professionals to help multinational organizations achieve their goal of accurate, cost-effective compliance that also provides global visibility to the right information for making informed strategic decisions.Back to topFinancial accounting for income taxes Financial accounting and reporting for income taxes have become increasingly complex. Tax
854 words - 4 pages
The Tax Deductibility of Expense in Slovak Law
The Slovak Republic has been engaged in competition with surrounding countries to attract foreign investors. One aspect of the continuing competition is that many countries have lowered their corporate income tax rate. The Slovak Government reduced its corporate income tax rate to 29% effective from January 1, 2000 and it is proposed to reduce this further in future. However, this tax rate does not tell the whole story. To assess the actual tax burden one should also consider which costs are allowed as tax deductible and which costs are not. In this article we will address some of the most important issues in this area.
As a general
665 words - 3 pages
taxes at the corporate income tax rate and files its own corporate tax forms each year. Moreover, Corporations cannot deduct dividends from business income.
Limited liability mean their liability is limited to their investment and limited liability companies means a limited partnership without a general partner.
Corporations and limited liability companies give owners limited liability. Limited partnerships provide limited liability for the limited partners, but not for the general partners
* Limited liability and perpetual life
* Stockholders, directors, officers are typically not liable for the company’s debts and obligations
1250 words - 5 pages
wealth that have been realized that are not the result of labor (earned) or capital (unearned).
Increases in wealth that have NOT been realized and are typically not taxed due to the administrative convenience concept.
Annuities (Constant Payment- Ex. Pension, Retirement)
The original investment is excluded from gross income (Capital Recovery Concept)
Must spread the recovery over the time period of receipt
Each payment includes
Return OF investment -- Excluded
Return ON investment -- Taxable
Use before-tax dollars
1451 words - 6 pages
policy briefconsumption taxes: the way of the future
* Government more and more interested in taxes on consumption to finance a large share of public spending
(1). Increased international tax competition>>联想：可能是公司都找到税收最低的国家创立空壳公司来合理避税>>different to collect income taxes>choose consumption to be the main source of revenue.
(2). Move from tax on income to tax on consumption
>>improve economic efficiency
>>increase the rate of growth
increase VTA rate >>to finance a cut in social security contributions.
825 words - 4 pages
tax law allows companies to use those losses to reduce its tax bill. This is known as a net operating loss carry-forward.
The second tax break, though, called the active financing exception, is a whole different story. According to Robert Willens, a corporate tax expert, this tax break was first enacted in 1997 and it allows companies to avoid paying U.S. taxes on overseas profits — if those profits were derived by “actively financing” some activity or deal. Therefore, by intentionally shifting billions of dollars in profits from its U.S. income statement to its overseas income statements and parking its profit in foreign countries, GE has been cutting the percentage of its American
1111 words - 5 pages
the standard and itemized deductions as well as all exemptions making the tax based off of what you earn in income. Critics say that this would eventually shift more of the burden to the middle class and less to the wealthy. I would say that while the wealthy would end up paying less tax in the end because they are paying a lower rate, this does allow them more income to expand in other ways, whether it’s through their own businesses or investments which can have an impact on the economy.
Another alternate system that is being discusses is a national sales tax, or fair tax. This would eliminate the tax code and IRS all together by taxing only purchases and not income. It would also
3705 words - 15 pages
. Assuming that the income effect of the tax-induced price change is negligible, the excess burden of the tax will be:
2 out of 2 points
If a lump-sum tax is imposed, the slope of the new budget line relative to the budget line prior to the tax:
If the price elasticity of supply of labor is equal to 0.5 and the price elasticity of demand for labor is â€“2, then which of the following is likely to result from a tax on labor earnings?
A lump-sum tax:
2 out of 2 points
Other things being equal, the more inelastic the demand for a taxed good,
2 out of 2 points
Differential tax incidence
1012 words - 5 pages
, Marshall R. Jones, determined deficiencies in Alacare Home Health Services Federal income tax of $136,895 for 1995 and $58,726 for 1996 and accuracy-related penalties under section 6662(a) of $27,379 for 1995 and $11,745 for 1996.
Identify the issues:
As a Medicare-certified home health care agency, Alacare must comply with accounting guidelines contained in the Medicare Provider Reimbursement Manual Publication. The respondent determined that Alacare’s policy of expensing assets that cost less than $500 was not a proper method of accounting, and that Alacare must capitalize the cost of the disputed assets over their useful lives.
Locate applicable authorities: