...The system of tax that a country chooses has a lot of effects on both its citizens and the economy as a whole. Most countries have adopted a progressive tax system, whereby they tax different classes of people different percentages of their wages. For example, the system might tax high-income earners, middle-income earners, and low-income earners at 30%, 15%, and 10% of their earnings respectively. Over time in the U.S and other major countries, some macroeconomics analysts have been proposing the replacement of the current progressive tax system with a flat tax system. Here, the household income will be taxed at a uniform rate, regardless of the level of income (Hall, & Rabushka, 2007). Hall claims that this system is of benefit to everyone,...
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...2011 The Problem Even Congress Cannot Fix: Inequality in America The big story that has been all over the news in recent times is none other than the massive bear of a problem: inequality in America. This not so white elephant has dominated American news stations, but nonetheless has not been resolved. There is without a doubt financial inequality in America, and the main problems with this financial inequality are the flawed educational system where rich dumb kids have a much better chance to graduate college than a hard working poor kid, and the increasingly large gap between the rich and the poor. The cause for the problem of unequal opportunity in schooling is inherently the quality of instructors and schools across the nation, and the cause for the overwhelming rift between social classes is a flawed tax system which punishes success and benefits the poor. Furthermore, the solutions for these two massive problems would be to reform the American educational system to a performance based system and a reformed tax system that broadens the tax base and encourages success. Certainly, the level of financial inequality is an issue. But, why is it such an issue? One of the major underlying problems with financial inequality is the face that rich dumb kids that maybe be in the bottom twenty-five percent of their school but come from families that are in the top twenty-five percent of the socio-economic spectrum have a significantly higher chance of finishing college than students...
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...A STUDY ON PROGRESSIVE INCOME TAX A CASE STUDY OF US & BRAZIL ________________________________________ INSTRUCTOR: DALIA EL-EDEL ECON 310-02 TERM PAPER - BY: JIHAD MASHAMOUN 900-08-2910 LARA AZZAM 900-09-3033 LUJANE MULLA 900-10-1019 ABSTRACT There is no doubt that the widening income disparities were a major driving force fueling the recent uprisings within the Middle East. One solution that has been put forth for adoption is the progressive income tax. This paper intends to assess the theoretical bases and popular arguments surrounding this very dynamic topic. The first section provides a brief definition of progressive taxation in contrast with other forms of taxation. It also discusses the most dominant for and against arguments both from a theoretical and an empirical point of view. The second section provides a case study of progressive income taxes in a leading industrial and developed country; the US. The third section provides a comparative study from Brazil; an emerging economy that has recently adopted progressive taxation. Based on the theoretical analysis and the two case studies, the paper concludes by providing policy recommendations that should be implemented in order to complement progressive taxation and gain the best and most balanced results in terms of equality, efficiency and revenues. Finally taxation is only part of the economic equation; proper efficient tax system is only one step forward towards creating equal opportunities through proper...
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...The Value of Value-Added Tax Wayland Baptist University 3 May 2012 The Value of the Value-Added Tax Introduction Americans seem to fear taxes, but consistently complain about the economic instability of this country. A great deal of Americans does not even understand how to calculate the collection of, or expenditures of the percentage of taxes they pay on an annual basis. Other countries have adopted the value-added tax and are not in a massive hole of debt such as the United States. Is there value to the value-added tax? As history has indicated for hundreds of years, taxes are required for a country to face economic growth and to become prosperous. The income tax plan that is currently in place is not helping the United States economy in the least especially compared to our expenditures. But exactly which tax method would be of greatest value for the United States’ to begin the slow hike uphill to conquer the massive hole of debt. Is the income tax or consumption based tax best for Americans? This research paper may not answer the United States economic problems, but will define the various taxes and how they may benefit American’s current economic instability. Literature Review Mr. James R. White is the Director of Strategic Issues within the United States Government Accountability Office. The following article was in his testimony before the Committee on Ways and Means, House of Representatives, “Value-Added Taxes: Potential Lessons for the United...
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...sponsership like football and rubgy. Ascis has been in the asian market for many years markets mostly in Japan and well recognised in American continent,In some asian countries like Indonesia,Thailand, Singapore and Malaysia it is well knwon and still developling its brand name in some coutires. Ascis has not only focused on Sports wear but also concentrate on Apperals and expanded its sports shoe products from Running shoes to walking shoes, and football shoes. It is known in Singapore and Thailand the market share of ascis is low but still one of the leading brands. This paper mainly focuses on Ascis and Asean countries development and growth and how it impacts the buiness by entering their market. But this paper mainly focuses on major countries like Singapore and Thailandas they are the emerging market and high business prospects PEST analysis is used for understanding the growth or decline of the market this paper focus on PEST analysis of Singapore,and Thailand but main focus is Singapore. PEST Consist of Political, Economic, Social and Technological. Singapore is well known for its grasping cultrue.People push themselves in quest for 5Cs. (Cars, Condos,Cash,Credit cards and country clubs,) Singaporeans thrive themselfs to excel even at young age even with the amout of stress people have Singapore is known as the happiest countrie in Asia...
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...average rate at which an individual or corporation is taxed. The effective tax rate for individuals is the average rate at which their earned income is taxed. The effective tax rate for a corporation is the average rate at which its pre-tax profits are taxed. An individual's effective tax rate is calculated by dividing total tax expense by taxable income. For corporations, the effective tax rate is computed by dividing total tax expenses by the firm's earnings before taxes. The effective tax rate is the net rate a taxpayer pays if all forms of taxes are included and divided by taxable income. The effective tax rate is often a more accurate representation of a taxpayer's tax liability than its marginal tax rate. Two companies that are in the same marginal tax bracket, for example, may end up with different effective tax rates depending on their earnings. This occurs particularly with a progressive, or tiered, tax system, where different levels of income are taxed at different rates. For example, the first $100,000 of income may be taxed at 10%, and income between $100,001 and $500,000 might be taxed at a rate of 15%. The corporation's income is taxed at the various levels, and to determine the effective (or average) tax rate, the total tax is divided by the total taxable income The term effective tax rate has different meanings in different contexts. Generally its calculation attempts to adjust a nominal tax rate to make it more meaningful. It may incorporate econometric, estimated...
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...fought the communist terror during the war but were defeated. As a result of the occupation, Estonia lost nearly 20 percent of its population. But we never gave up. When the 1980s offered us a new chance, we took advantage of it. Estonia became one of the first countries to pry open the cracks in the Soviet Empire. Finally, in 1991, after 50 years of occupation, Estonia became free again. We had freedom but little else. Estonia was destroyed during the period of communist rule. In 1939, Estonia’s living standards and way of life were more or less the same as neighboring Finland’s. Then Estonia lost its independence, but Finland, despite losing territory and population, succeeded in keeping its independence. Life under two different political systems created a huge disparity in the development of Finland and Estonia. People learned and worked hard on both sides of the Finnish Bay, but only the Finns seemed to prosper. After starting from the same point, Finland’s gross domestic product (GDP) Talking Points • Fifty years of communist rule devastated Estonia. In 1939, Estonia and Finland had similar standards of living. In 1987, Finland’s GDP per capita was $14,370, compared to Estonia’s GDP per capita of about $2,000. • After the collapse of the Soviet Union, Estonia took...
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...Why Fairness Matters Progressive Versus Flat Taxes Robert J. Shapiro April 1996 Pro gres s iv e FOUNDATION Why Fairness Matters: Progressive versus Flat Taxes Progressive Foundation The Progressive Foundation works to develop and promote a new progressive political philosophy and governing agenda for America based on individual liberty, equal opportunity, civic responsibility, and nonbureaucratic governance. The substantive work of the Foundation revolves around some of the most difficult challenges facing America in the 1990s: assuring upward mobility for working Americans in the new world economy; resolving the great American dilemma of race; restoring a civil society and strengthening the social ties that foster a sense of community; finding America’s proper role in the post-Cold War world; and rethinking the size, shape, and mission of government in an Information Age. The Foundation explores public controversies over cultural questions—race, ethnicity, gender, religion, morality, and civic education—that are often ignored in conventional political discourse. The Foundation’s Project on Tax Reform and Economic Growth works to develop a tax reform program that is consistent with a progressive distribution of the tax burden, and can help promote stronger job and business formation, greater productivity, and higher family incomes. This report is the first of two new reports outlining the essential features of such a tax reform program. The preface contains more...
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...ASSOCIATES Supply-Side Investment Research 10-yr T-Note: 4.27% DJIA: 10,538.66 NASDAQ: 2,057.37 CIC Securities January 6, 2004 S&P 500: 1,123.67 S&P 500 Undervalued: 56.7% THE LAFFER CURVE: PAST, PRESENT AND FUTURE1 By Arthur B. Laffer The story of how the Laffer Curve got its name isn’t one of the Just So Stories by Rudyard Kipling. It began with a 1978 article published by Jude Wanniski in The Public Interest entitled, “Taxes, Revenues, and the ‘Laffer Curve.’” As recounted by Wanniski (associate editor of the Wall Street Journal at the time), in December of 1974 he had been invited to have dinner with me (then professor at the University of Chicago), Don Rumsfeld (chief of staff to President Gerald Ford) and Dick Cheney (Rumsfeld’s deputy and my former classmate at Yale) at the Two Continents Restaurant at the Washington Hotel in Washington, D.C. (just across the street from the Treasury). While discussing President Ford’s “WIN” (Whip Inflation Now) proposal for tax increases, I supposedly grabbed my napkin and a pen and sketched a curve on the napkin illustrating the trade off between tax rates and tax revenues. Wanniski named the trade off “The Laffer Curve.” I personally don’t remember the details of that evening we all spent together, but Wanniski’s version could well be true. I used the so-called Laffer Curve all the time in my classes and to anyone else who would listen to illustrate the trade off between tax rates and tax revenues. My only question on Wanniski’s...
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...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 is a development of the last one hundred years. Prior to the ratification of the sixteenth Amendment in 1913, the income tax was a contentious issue as it was deemed unconstitutional. Prior to 1913, the government relied heavily on property taxes and excise taxes to raise revenue for its operations. However, there were attempts to establish an income tax prior to the ratification of the amendment. The Revenue Act of 1862 created the first progressive income tax in the United States. The Act was passed in response to the government's need to fund the Civil War. The income tax was simple and provided two tax brackets, the highest being a 5% tax on taxpayers with incomes in excess of $10,000, per annum (Taxhistory.org, n.d.). The argument against the income tax was based on the...
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... Multiculturalism can have an effect in any institution of culture whether it involves government, education, economics, religion, or family. For the purpose of this paper we will focus on strategies and situations many businesses will face. Culture will be defined as “the pattern of shared beliefs and values that give members of an institution meaning, and provide them with the rules for behavior in their organization” (Shafritz, Ott & Jang, 2011, p. 364). We will discuss why the need arises for a business or organization to expand or change their ventures to another vicinity outside of their native culture; what problems can occur during the transition of moving from one culture to the next; and the benefits behind using multiculturalism. Multiculturalism today is met with the demand of the economy on a global scale. Capitalism or the pursuit of profits is a driving factor for businesses to relocate in the hopes of achieving higher margins in profit. The stakeholders, those who have vested both time and resource into a business or organization are persistently pushing businesses for higher profits. Businesses must consider what barriers are necessary to break down in both their country and the one they are considering to expand inside. “In the modern structural, organizational economics, and systems/environment theories of organizations, organizations are assumed to be rational-utilitarian institutions whose primary goal is to accomplish established goals” (Shafritz...
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...rP os t 9-205-030 OCTOBER 5, 2004 MIHIR A. DESAI MASAKO EGAWA op yo The Continuing Transformation of Asahi Glass: Implementing EVA Toshiya Iwasaki, who founded our company in 1907, succeeded in Japan’s first commercial manufacturing of flat glass after numerous failures. He used to say, “Never take the easy way out, but confront difficulties.” He built the corporate culture to challenge the most difficult problems. — Shinya Ishizu, President and CEO Shinya Ishizu was in a difficult situation of his own devising. As president and CEO of Asahi Glass Company (AGC), he presided over a Japan-based multinational manufacturer of flat glass, chemicals, and electronics and displays, with annual sales of •1.3 trillion and the largest global market share in most of its product categories. Worldwide, AGC controlled a network of over 200 subsidiaries and affiliates in 25 countries, generating •52.4 billion in overseas operating profits in FY2003—sixth largest among all Japanese companies.1 (See Exhibit 1 for financial information and Exhibit 2 for AGC’s global presence.) tC After he was appointed president and CEO in 1998, Ishizu began implementing a number of drastic changes to the company’s structure and corporate culture in order to create a truly international enterprise. In 2002, he split AGC into four business units on a global basis which were dubbed “in-house companies” and appointed two non-Japanese executives to manage the glass business, which...
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...S. Tax System The art of taxation was in the “plucking the goose so as to obtain the largest amount of the feathers with the least possible amount of hissing”, said by Jean-Baptiste Colbert, the seventeenth-century French finance minister. (Miller) From the historic perspective, current government of United States has developed a very efficient tax system of plucking its private–sector goose. While it seems this tax system indeed obtain the largest amount of the feathers, but the amount of hissing is growing. Due to a drop in individual income taxes, corporate income taxes, and estate taxes combining with the substantially change in the composition of top incomes, the U.S. tax system has became less progressive. According to the relationship between tax base and tax rate. There are three branches of tax system in the United States: proportional taxation, progressive taxation, and regressive taxation. Progressive taxation and regressive taxation are based on the proportional taxation, in which tax rate is fixed weather the taxable base amount increases or decreases. Based on the proportional taxation system, the progressive taxation is the one in which the tax rate increases as the taxable base amount increases, and the regressive taxation is opposite. Under those three taxation systems, there are kinds of taxes, primary including individual income tax, corporate income tax, estate and gift tax, and payroll tax. From the historic perspective, the overall U.S. federal tax system...
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...Seminar/US-VA Government Research Paper What should the federal government do about an issue facing the United States of America today? You will be writing a research position paper that will receive grades in both your English and government classes. The paper will serve as an introduction to Model Congress. Project Objectives: • Prepare for Model Congress and complete a benchmark for English 12 POS ▪ Students will select a federal policy issue which interests them and research the policy (if it is a historical topic, think about the following: did Congress pass the legislation? Why did the policy succeed or fail? Did the president approve or veto the policy?) ▪ Each public policy topic from the list may only be selected by ONE student in each class period ▪ Students will make connections between their chosen public policy and topics studied in U.S. Government. Students must choose three of the topics below to address in their paper somehow: 1) Bipartisanship or lack thereof in Congress 2) Bureaucracies (agencies or heads of agencies) 3) Divided government or unified government 4) Federalism (lobbying efforts from states) 5) Interest groups (name specific) 6) Media (advertisements – describe) 7) Presidential leadership 8) Party discipline (or lack thereof) in Congress Requirements of the Combined Research Paper 1. Thesis Statement 2. Annotated Bibliography 3. Formal Outline 4. Final Paper (including parenthetical...
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...ACC 555 Entire Course Individual Tax Research and Planning https://homeworklance.com/downloads/acc-555-entire-course-individual-tax-research-and-planning/ ACC 555 Entire Course Individual Tax Research and Planning ACC 555 Assignment 1 – Tax Research Imagine that the Internal Revenue Service (IRS) has selected your client for an audit. Your client and the IRS disagree about the amount of tax revenue owed. You agree with your client’s position. You must provide a defense for the client that requires you to research the issues in order to render an educated opinion on a course of action for your client. Note: You may create and/or make all necessary assumptions needed for the completion of this assignment. Write a three to four (3-4) page paper in which you: 1. Prepare a defensible strategy for the client by using the six (6) steps in the tax research process. Propose how each of the steps provides support for the client’s position. 2. Create a fact-based argument that you plan to propose to the client as a defense of his / her position with the IRS. ACC 555 Assignment 2 – Tax-Deductible Losses Write a six to eight (6-8) page paper in which you: 1. Research the manner in which tax-deductible losses originally became part of the U.S. Tax Code. Conclude whether or not tax-deductible losses overall are reasonable. Provide support for your conclusions. 2. Suggest what you believe to be a significant tax-deductible loss. Discuss whether or not the deductibility...
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