...extraordinary insecure thinking that they are a doctor's visit away from descending to poverty. The current tax system in the U.S is ineffective ad unfair. It does not incentive the growth of economy and pushes the industries and jobs away due the high cost to accommodate in the U.S. To keep the system as it is now it will deteriorate even more this economy, that has to create more jobs instead of shipping them away and make sure that everyone is being taxed fairly. The solution for this broken tax system is the FairTax. It consists on a change to the federal government tax laws that will replace all federal income taxes for only one consumption sale tax of 23%. The FairTax will treat everyone equally and incentive economic growth, bring international business back to the U.S and create more jobs. The FairTax is a replacement of the current tax system that raises the same amount of money that is raised with the current tax system. It creates only one tax on consumption of products and services. The idea of it is to tax the money that is spent instead of the money that is earned. Studies show that consumption is a more reliable source of revenue than income, so the FairTax is a progressive system that benefits from it: the more you spend, the more you will pay on taxes. On the other hand, if you don't spend a lot, you will not pay taxes. The FairTax is a national sale tax of 23% and the whole idea is to abolish all the others federal income taxes. This new system may causes the...
Words: 1069 - Pages: 5
...ACC 617 – Tax Policy The Fair Tax The Fair Tax is a proposal to replace our current tax system with a consumption tax. This would eliminate all taxes, including income, corporate, estate, and gift taxes. The tax would be only on new goods and services, and would be 23%. For example, a good that costs $77 would have $23 of tax, so 23% of the total of $100 is tax. This is more commonly thought of as just a 30% tax on the goods ($23/$77 = 30%). A few of the arguments against the fair tax include how easily it would be to evade the tax. A person would just need to purchase used goods in order to avoid the sales tax. This could cause the underground economy to grow significantly. Another argument against the fair tax is that the tax isn’t high enough to fund the government. With no other revenue source, this tax would need to fund all functions of government, including Social Security and Medicare. Some economists even say the tax would need to be much higher in order to fund all the functions of government. Supporters of the fair tax say it is a better alternative because it is simpler than our current tax system. Most average American’s don’t understand all the regulations of the current tax system, and having a system they can better understand would help them make more sound financial decisions. Another advantage of the fair tax system would be that it is fair. Every American is treated the same in this system, regardless of income level. Overall, the fair tax has many...
Words: 371 - Pages: 2
...Fair Tax Act Jill Payne ACCT 615 April 26, 2014 Dr. Dana Leland “In this world nothing can be said to be certain, except death and taxes.” –Benjamin Franklin One thing is for sure you can’t escape taxes. The United States (US) income tax system is complex and often hard to navigate. Much like the English language there seems to be as many exceptions to the rules as there are rules. Our current system applies a tax rate to yearly income, and allows for deductions and exemptions to reduce an individual or business’s taxable income. Many would also argue that our current system is very intrusive as it requires us to provide many details about our families and business activities. The tax formula for the individual starts with income from all sources however many forms of income are excluded and therefore are not subject to the federal income tax. This creates a loop hole that allows many people to avoid paying their taxes. Also only reported income is taxed so anyone that is paid “under the table” or through illegal activities are able to shield their income from being taxed. Is there another way? Enter the Fair Tax Act. The idea behind the Fair Tax Act is simple, instead of taxing income the US government would tax consumption. Currently many state and local governments do have a small consumption tax but not the federal government. The difference between our current system and the proposed Fair Tax Act is that money would be taxed when it is spent not...
Words: 861 - Pages: 4
...Case for Fair Tax Reform The current economic situation of the United States can be blamed on a multitude of variables and is the fault of numerous politicians from both parties as well as an abundance of special interest groups with lobbying power, not to mention several Presidential administrations. This paper will not examine all of these variables or individuals; it will concentrate on the isolated issue of tax reform on the highest earners and how it negatively affects the federal deficit and income inequality inside of the United States. What this paper will prove is that if the United States does not raise taxes on the highest earners, history shows that the divide between rich and poor as well as the divide between surplus and deficit will only widen into the future. When President Ronald Reagan shrank the tax brackets in 1987, it was the beginning of a new economic era. The theory behind cutting taxes on the richest people was that with extra money, the most profitable companies and taxpayers would invest their extra capital into the market and in the process create more jobs, expanding the economy. This may not have been the catalyst for the service economy revolution but it certainly coincided with it. A significant amount of opportunity cost was invested into foreign markets creating a cheaper workforce abroad, while domestically shrinking the labor market. According to MIT professor James Poterba, income inequality began to increase after the 1986 tax reform...
Words: 2609 - Pages: 11
...income tax rate. Most Americans were not concerned since the Amendment was sold to them as something that would only affect corporations and the rich. With ever increasing fervor these corporations created lobbyists to convince Congress to exempt them from some or all of the income tax. The big breakthrough in this was taxing the worker directly with payroll taxes during World War II. This method of collecting income tax was sold to Americans as temporary, but Congress has extended it indefinitely and the public has become used to it. The next few decades saw the debate revolve around creating tax breaks for individuals in an attempt to modify behavior or spending. This has resulted in over 67,000 pages of tax code and an entire industry devoted to tax compliance and evasion, with the unintended behavioral change of corporations and the rich parking their money outside of the United States in small island nations to avoid taxation. These offshore accounts are estimated to hold $10 trillion dollars, a number approximate to the national debt. The FairTax Act should be enacted because it eliminates all federal income taxes for individuals and corporations, eliminates all federal payroll withholding taxes, abolishes estate and capital gains taxes and repeals the 16th Amendment; thus eliminating the need for offshore accounts. The FairTax Act will replace these costly, oppressively complex and economically inefficient taxes with a progressive national retail sales tax, which...
Words: 1878 - Pages: 8
...The Fair Tax Act of 2013 is an alternative tax plan introduced Senator Saxby Chambliss (R-Ga) to the Senate Finance Committee on January 23, 2013. Subsequently Senate bill S. 122 and House bill H.R.25 were written. The Congressional findings of the 113th Congress in regards to the Federal income tax, which prompted the introduction of this alternative tax plan, found that the present systems of federal taxation retards economic growth thus reducing the living standards of the United States citizens, impedes the International Competitiveness of Industry in the United States, lowers productivity, as well as a host of other negative findings attributed to our current Federal taxation scheme. Those that supported the introduction of this legislation have the belief that a consumption tax, which is the hallmark of the Fair Tax plan, would have a positive effect on savings and investment thus easing tax compliance resulting in an increase in economic growth and international competitiveness of American industries. Glen R. Hubbard wrote: “A shift from the current tax system to a broad-based consumption tax is best thought of as a two-step process”. His findings first conclude that most elements of consumption tax reform are consistent with moving to a pure income tax with uniform capital taxation. Once there, to get to a consumption tax the key element of reform would be the replacement of depreciation allowances for physical investment with expensing of capital assets. Both of these...
Words: 2324 - Pages: 10
...Cindy Vasquez Professor Tonetti 2/4/15 ENG 023 State fair When people arrive to the festival, they see the blue, red, yellow and white lights, the smell of fried food and they see the big stuff animals to take home and how people form in lines just to enjoy the festival with all the attractions that one festival has. Many families wait for that day to come to enjoy quality time together. In the article Garrison Keillor explains how the fair is very similar to the mercer’s Italian Festival and there’s many similar things that stands out. Many families love to go to fairs to distract their mind from everything. It’s a way to take away stress. First of all Garrison Keillor explains how greasy and delicious the food is, that is one major factor that makes the Mercer festival similar to the one in the book. People wait in line just to waist their hard earned money on unhealthy greasy food, yet they enjoy every bite of it. Its one day that the family can eat anything they want because the simple fact that they can’t eat it daily. In both festivals they serve hot dogs, sausage, ice cream, fried food such as, fried snickers, French fries and fried Oreos. Second of all many families spend so much money in arcades and prize games, they either come out empty handed or with large stuffed prizes. For instance both festivals have three very similar prize games such as, basketball, ring toss, and squirt water into the clown’s mouth. People go to ATM’s to take out money to spend on games...
Words: 545 - Pages: 3
...I would not be the person I am today if I did not join 4-H seven years ago. 4H has affected me in the most positive ways possible, from learning new life skills, meeting new people, creating friendships, and even solidifying my career choice of being a veterinarian. When I first joined 4-H in 2010 I was living in California and was only a part of two projects. I added on two projects the next year, and I was in five projects the year I moved here to New Jersey in 2013. I am now currently apart of Fluff-N-Stuff Rabbit and Small Animal Club, Gloucester County Goat Club, Canine Can Do Dog Club, Peckin Pals Poultry Club, Helping Paws Animal Community Service Club, Taste Buds Cooking Club, Small Treasures Miniature Dollhouse Club, Senior Council, and Bulleseye Bombers Archery Club. I am also the Gloucester County Key Ambassador, a part of the South Jersey Youth Representative Council; which I represent Gloucester County teens and plan state events for south jersey 4-H teen members. I also received first runner up at the State Agricultural Ambassador Contest this past November. I have learned numerous skills and discovered many talents that I have through all of these clubs, events, and positions held. Leadership, public speaking, organization, confidence, knowledge, and communication are all skills I have learned, and continue to improve, through 4H. I have learned leadership from running for different officer positions, and helping new and younger members. My public speaking skill...
Words: 1253 - Pages: 6
...At a young age I discovered my love for animals and a passion to giving back to my community. Eight years old and making the decision to join 4-H is the best decision a young girl could make. A close family friend was generous to give a rooster to that young girl and the love and need for farm life soon came after. Goats, chickens, rabbits, pigeons, sheep, and pigs were the animal species I have raised and shown over the last ten years. Showing animals came great responsibility as it takes dedication, time, and problem solving. Living on a farm there are always tasks that need to be met. Cleaning stalls, disease prevention, and the list goes on. Throughout my years of 4-H and since I was eight years old I have always dreamt to have my own farm and be a veterinarian. Today, this is still my goal. Being a veterinarian is not only about saving animals. It is about giving back to beloved pet owners and in some cases giving back to the world's food supply by contributing to disease prevention and longevity of animals. Furthermore, in high school I have striven to maintain a high grade point average while staying active. I am active in sports, clubs, and community service. At Indiana University Southeast I will still be able to remain active in the community. It is close to home as I will still be able to do volunteer work and be active in my colleges community activities as well as my hometowns. Going to college at IUS will not only give me this advantage, but the opportunity to...
Words: 576 - Pages: 3
...Facts ‘Big Skinny’ was launched successfully at street fair. Solved five key problems people have with their wallets. 1. Size - Reduce Wallet size by 50 to 75% 2. Weight - Under an ounce 3. Card Pocket Size - Extra wide pocket 4. Slipperiness of the Interior - Lined with rubber coating which keep gravity. 5. Lack of Versatility - water resistant and tough enough even for machine wash. Its price is only $20. The costumers are happy with the product. Try to achieving maximal growth with online marketing. Problems Choices of online marketing options: 1. Display Ads: - Internet’s closest equivalent to booth at street fairs - Internet users were conditioned against display ads for they are irrelevant and irritating most of the times. - Sold on pay-per impression, rather than genuine clicks. 2. Algorithmic Search: - No guarantee that the site would appear in response to particular search. - The search engine retained wide discretion about changing the ranking methods. 3. Sponsored Search: - Advertisers paid on per-click, when users clicked on the ads. - Listings were sorted mainly on highest bids and click-through rates. 4. Social Media: - They have their own fan base. - Installed an AddThis website applet. - Their fan can share Big Skinny’s site on by their own social media. - Free of charge. 5. Interactive Content: - Engage customers Kiril included several interactive components on its site. - Big Skinny also organized essay contests for its fans...
Words: 314 - Pages: 2
...rhetorical situation. Defining Topic, Angle, Purpose 1. What is your chosen topic? (For example: a profile of Barb Collins, a volunteer at the local homeless shelter; a profile of “Shipwreck Days,” a citywide flea market and festival; or a profile of Burdick’s Grocery, the oldest family-owned business in town.) The annual “Martin County Fair” that recently took place in February is my topic for this week’s assignment. 2. What personal angle can you present on this topic? (Consider what is new about the topic or what unique perspective can be shared about this topic.) The Martin County Fair and most fairs in general have evolved to be more of an event for the rides. County Fairs and State Fairs were a celebration of Spring and for youths and farmers to show their “Prized” livestock. Each year the quantity of animals being shown in the fair has decreased and the fair has become more of a “Carnival”. 3. What is your purpose for writing? (What do you hope to accomplish? Why are you writing?) My purpose for writing is to inform and persuade people to take time to learn a little bit of the history behind the annual Martin County Fair. Possibly encourage young people to take an interest in raising and showing a farm animal. Analyzing your Readers You will be writing your Profile essay to your local community. Imagine you might submit the Profile to your local newspaper or have it shared in a community newsletter; the readers of those...
Words: 1001 - Pages: 5
...A little town was unusually noisy today. There came a fair. And since very morning everybody – children, adults and elderly people- gathered in the central square. Such a fuss! The fair was a very important occasion for people. They worked hard for the whole year and took a rest during those summer days. It was greatly celebrated. The square was decorated with flags, ribbons and flowers. Music was playing loudly. Children were laughing. And artists were performing and singing. All of those noises were combined in a melody of universal holiday. A little bird was singing with the melody. She liked fairs. She liked holidays. But in that town they were so infrequent! What a pity! -Mommy! – Asked the little bird her mother that was cleaning her feathers sitting under the roof beam, - Why people don’t like the fairs? Why they have fun so rarely? -Because, my little birdie, they should work hard to deserve this holiday. -I want more holidays, mommy! - Stubbornly twittered the little bird, - Where can be more holidays? -Well, I don’t know if it is true, but one day the Old Raven told us the story about the City. There are more people, so there should be more fairs, I guess…- the mother-bird murmured thoughtfully. -The City, - the little bird repeated it dreamily. It was the day when the little bird decided to go to the City. Next morning when the mother was asleep the little bird managed to leave their cozy nest and to start its long way to the City. The bird had been...
Words: 632 - Pages: 3
... |Measurement basis of agricultural crops, livestock, orchards, | | |forests. | |1.IFRS IAS 41, Para 10-33 |Fair value with value changes recognized in profit or loss. | |2.U.S GAAP |Historical cost is generally used. However, fair value less | |ASC 905-330-35-3 |costs to sell is used for harvested crops and livestock held | | |for sale. | | |US- inventory of corps and livestock shall be valued the lower| |3. Underlying theoretical difference |of cost or market. | | |IFRS-inventory of corps and livestock shall be valued only at | | |fair market value. | | |This is the biggest objection US companies have to IFRS. | | |Because, when market decides your inventories’...
Words: 2603 - Pages: 11
...Financial Accounting Standards Board. Positions of the Financial Accounting Standards Board are arrived at only after extensive due process and deliberation. 2. Overview Financial reporting topics Exposure draft, Business Combinations (joint with the IASB) Exposure draft, Consolidated Financial Statements, Including Accounting and Reporting of Noncontrolling Interests in Subsidiaries (a replacement of ARB 51) Fair value measurement Proposals for optional fair value measurements Exposure draft, Accounting for Uncertain Tax Positions, an interpretation of SFAS 109 Performance reporting Share based payment (SFAS 123R) 3. Joint IASB-FASB project on business combinations Intent => replace SFAS 141 and converge with international standards Will include mutual enterprises Will include acquisitions of businesses through means other than a purchase of net assets or equity interests A separate project is addressing business combinations involving not-for-profit organizations General principle: recognize assets acquired and liabilities assumed in a business combination at fair value Exceptions : income taxes, benefit plan obligations, operating leases Departure from the cost-based provisions in APB 16, which also appeared in SFAS 141 as originally issued Joint IASB-FASB Exposure Draft is available at the FASB’s website 4. Joint IASB-FASB project on business combinations Examples of proposed changes, relative to current practice Business combination achieved in stages Sometimes...
Words: 3971 - Pages: 16
...still sustaining their annual revenue. Latin America Latin America, a country known for its potent and fertile soil, is often taken advantage of by larger and more highly-developed countries because of its vast landscape and their lower tax rates. With the growing spotlight on moral and ethical business practices, the issue of fair trading has now come down to company’s marketing ploys. Companies, such as Target and Starbucks, use their fair trade practices to market themselves to more environmentally centered people. The issue of fair trade practices in Latin America stems from the countries past issues with unethical treatment, pay, and conditions for workers. According to the Stanford Social, the history of fair trade goes all the way back to the origins of bartering for goods back in the 16th century used while colonizing countries and trading with the indigenous people (Haight). In the eighteen hundreds, companies like the Dutch East India Company, “operated for the benefit of the mother country in “the colonies,” and were afforded monopoly privileges and protected from local competition by tariffs.” (Haight) These business practices made trading with underdeveloped countries unfair and often harsh. In the nineteen sixties, the fair-trade practices...
Words: 889 - Pages: 4
