...“A flat tax is a tax system, which refers to a tax on household income, taxes at a uniform rate, regardless of income level”, but “the US currently implements a progressive tax system, where high-income earners pay taxes at a higher rate than low-income earners”. I am strongly for a flat tax rate for personal taxes but against it for corporate taxes. I am “pro” flat personal taxes because American workers should be able to keep their life-long and hard earned money. You simply should not be punished for working harder and making more. Flat tax is simple, transparent and fair and it would help fix the loopholes in the US’s current tax system. A progressive tax rate punishes those who have income earned and saved. A flat tax rate makes filing and paying taxes easy for taxpayers and for the IRS in their tax calculations. A flat tax also eliminates the burden of double taxation for situations such as interest and dividends etc. A flat tax would also eliminate many filing loopholes and lead to a greater tax revenues overall. Furthermore, a flat tax rate encourages growth and job creation, as it is a sign of financial stability in the economy. People will not be afraid to achieve and, in turn, earn more because they will be taxed greater on it. A flat tax would make it simple to save and to invest. Finally, I believe it is important to understand that I am actually against a flat tax for corporations because large and profit making companies are taxed essentially nothing. This is...
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...Consumers May Be Required to Report and Pay Sales or Use Taxes For consumers that order tax-free items online, but live in states that charge a sales tax, they are technically required to report that purchase to their state tax agency and pay the sales tax directly to the agency. When consumers are required to do so, it is often called a "use" tax. The sole difference between a sales tax and a use tax is the person that ends up giving the money to the state government. When it is a sales tax, the retailer is the one handing over the money, while a use tax is handed over directly by the consumer. However, collecting use taxes on small purchases often costs more than simply letting the consumer not pay the use tax. Instead, state tax agencies try to focus more on collecting use taxes for big ticket items that are purchased online with no sales tax, such as cars and boats. However, there are a number of states that have stepped up their enforcement of their use tax laws and are now trying to make their state residents pay the taxes that should be paid. However, these states are still hampered by limited resources as well as the complexities involved with tracking down minor purchases and demanding that a use tax be paid. It is worthwhile to keep in mind that state governments are missing out on a substantial chunk of money when it comes to uncollected use taxes. It is not too hard to imagine the federal government stepping in at some point to pass legislation regarding use...
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...b Employer identification number (EIN) c Employers name, address, and ZIP code 12a See instructions for box 12 71-0794409 C o d e W $ DD 12b C o d e $ 31653.69 e Employees first name and initial 06440 6440 Last name Suff. 1 of 1 C o d e 8 Allocated tips 9 $ Copy B To Be Filed With Employees FEDERAL Tax Return 10 Dependent care benefits 0.00 13 Statutory employee 11 Nonqualified plans Retirement plan Third-party sick pay 14 Other NY SDI 32.40 Import Code: MUYE3QRK a Employees social security number 117-68-9305 f Employees address and ZIP code 15 State Employers state ID number 16 State wages, tips, etc. 710794409 17 State income tax 31653.69 Form W-2 Wage and Tax Statement 2014 18 Local wages, tips, etc. OMB # 1545-0008 12a 71-0794409 C o d e WAL-MART ASSOCIATES, INC. 20 Locality name C o d e 31653.69 5 Medicare wages and tips $ 12d Last name Suff. C o d e 8 Allocated tips 9 10 Dependent care benefits 0.00 13 Statutory employee 11 Nonqualified plans Copy 2 To Be Filed With Employees STATE, CITY or $ 6 Medicare tax withheld 7 Social security tips $ 12e C o d e 1 of 1 3927.19 4 Social security tax withheld 3 Social security wages $ C o d e 2 Federal income tax withheld 31653.69 3500.22 12c 702 SW 8TH STREET BENTONVILLE, AR 72716-0135 ...
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...tackling tax avoidance, it is important to take into account the overall contribution to government revenues by MNEs and the existing tax base, as well as new productive investments by MNEs and the future tax base. The degree to which MNEs engage in tax avoidance varies by industry and home country (among other factors), but tax avoidance practices are widespread. They cause significant tax revenue losses worldwide – in both host and home countries of international investors. Not only do they cause economic and financial damage to countries, they also raise a basic issue of fairness. In almost all cases, the shift in profits through the use of offshore investment hubs does not reflect actual business operations (i.e. the profits reported and taxes paid in a jurisdiction are disproportionate to the activities that take place there). The shifting of profits between jurisdictions results in an unfair distribution of tax revenues between jurisdictions. The practice is especially unfair to developing countries that face certain tax related challenges. • Limited tax collection capabilities. Accurately identifying tax planning practices requires an analysis of global operations for individual MNEs, an unrealistic task for most countries, and especially developing ones. There is a clear case for technical assistance to developing-country tax authorities. • Greater reliance on tax revenues from corporate investors. Developing economies tend to rely relatively more on tax revenues from a smaller...
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...Правен факултет ‘ Јустинијан Први ’ – Скопје Универзитет ‘ Свети Кирил и Методиј ’ – Скопје ДАНОЧНИОТ ТРЕТМАН, ОЛЕСНУВАЊАТА И ОСЛОБОДУВАЊАТА НА ДОМАШНИТЕ И СТРАНСКИТЕ ПРАВНИ ЛИЦА Скопје 14.05.2015 Клучни зборови: данок, домашни и странски правни лица, , олеснувања, ослободувања, слободни технолошко-индустриски развојни зони. ВОВЕД 1. Што се даноци и слободни технолошко-индустриски развојни зони Даноците се најважен јавен приход, со кој државата од субјектите кои се под нејзина даночна власт, принудно зафаќа парични средства без непосреден противнадомест, заради задоволување на финансиски потреби и остварување други економски и социјални цели. Нивни карактеристики се: Деривативност – тие се инструмент за прераспределба на доходот, односно на имотот, заради финансирање на јавни расходи; Присилен карактер – Плаќањето данок не е чин на доборволно давање, туку произлегува од авторитетот на државата; Со даноците се финансираат јавните расходи; Отсуство на непосреден противнадомест – за платениот данок, државата не дава специјална услуга на оној што го платил данокот. Нивната полза е од општ карактер; Данокот е парчно давање. Елементите на даночно – правниот однос се : субјекти на даночно правниот однос (Активен даночен субјект – Тоа се даночните доверители. Постои само еден единствен активен субјект – ДРЖАВАТА и Пасивен даночен субјект – Даночен должник кој може да биде физичко или правно лице кое е должно да ја исполни обврската од даночно – правниот однос. Даночен...
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...Tax is a levy or a financial charge that the government imposes on taxpayers, which may be an individual or a legal entity. If a taxpayer evades paying tax, then he can face punishment in the court of law. There are three charging tax system methods that the government uses to levy taxes; these are the progressive method, the regressive method and the progressive method. The proportional system charges a constant rate regardless the amount of salary a person earns. The regressive tax is whereby the income of an individual goes up, and the tax to pay decreases, while as in the progressive taxpayer. If congress approves a new tax that will fund scientific research to find an alternative fuel sources, and everyone pays $200, then this is the proportional tax that is same as the flat tax. The system is deducting everyone $200 regardless of their income status in that the rich and the poor all contribute a fixed charge. In this project, the proportional tax system is the best method to fund this project. In the consideration, in a benefit principle point of view, the poor benefit much on the government operations like the ongoing scientific research, and so they are to pay accordingly. More so the rich in the economic growth and investment perspective, the rich with more income will invest in the capital goods. Investments and in this case, capital goods stimulate and promotes growth in the economy; thus, this benefits all members in the society. So the rich are to pay fewer amounts...
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...CHAPTER 2 CORPORATIONS: INTRODUCTION AND OPERATING RULES SOLUTIONS TO PROBLEM MATERIALS Question/ Problem Learning Objective 1 LO 1 2 LO 1 3 LO 1, 7 4 LO 1, 2 5 6 LO 1, 2 LO 1, 2 7 8 9 10 LO 1 LO 1 LO 1 LO 2 11 LO 2 12 LO 2 13 LO 2 14 LO 2 15 LO 2 16 17 LO 2 LO 2 18 LO 2 Topic Choice of entity: tax and nontax factors in entity selection Corporation versus S corporation: treatment of operating income and tax-exempt income; no distributions Corporation versus proprietorship: treatment of losses Corporation versus partnership: treatment of operating income and STCG Corporation versus LLC and S corporation Closely held corporations: shareholder transactions Double taxation LLCs: single member LLCs: multi-owner default rule Accounting periods: general rule and fiscal year limitation Accounting periods: PSC fiscal year limitation Accounting methods: limitation on cash method Accounting methods: limitation on accrual of expenses to cash basis related party Net capital gain: corporate and individual tax rates contrasted Net capital loss: corporation and individual contrasted Recapture of depreciation: § 291 adjustment Passive loss rules: closely held C corporations and PSCs contrasted Passive loss rules: closely held C corporation Status: Present Edition Q/P in Prior Edition Unchanged 1 Unchanged 2 Unchanged 3 Unchanged ...
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...government-funded programs. Taxes affect every person, business, and property. This environment of constant change is a challenge for most accountants or anyone for that matter. This paper seeks to explore the history of the Federal Income Tax System, the Internal Revenue Code, the Internal Revenue Service, and guidelines and improvement of the tax system. History of Taxation in the United States The history of taxation in the United States commenced when the British, French and Spanish Empires ruled the individual colonies established in the US. This was back in the 1790’s after World War I. After their independence from Europe, the taxation system continued by collection of poll taxes, tariffs, and excise taxes. There were various acts passed by parliament which imposed taxation of various items such as lead, paper, paint, glass, stamps, sugar, and tea as a means of tax collection. From these come the Sugar Act, the Stamp Act, and the Townshend Revenue Act. The Boston Tea Party was the insurgency against the British colonists by the American colonists to not pay the tea tax levied upon them. Federal Government Income Tax History The taxation system in the United States is governed by different levels of government. There are different methods of taxation as well. The tariffs imposed were the largest source of federal revenue from 1790 to the eve of World War I. This was the largest source of income until the collection of income taxes. Congress adopted federal...
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...Is the income tax reform needed?...You judge. ….. COMM/215 25 July 2008 …… Is the income tax reform needed?...You judge. The term “taxes” always has been the least favorite subject of conversation among people in the United States, especially shortly before April 15th of every year. Even small thoughts about tax rules, regulations, and policies bring headache to majority of population. The American income tax system seems very complicated, and now it is time to change it. Every American needs to contribute equally, one or two percent of his/her income. Institution of taxes has deep roots in history of every country, and taxes are key part of government’s revenue. Prior to enacting federal income tax, all taxes were taken base on tariffs or sales. United States history of income taxation began in the 19th century with the imposition of income taxes to fund The Civil War expenses. The 16th Amendment, ratified in 1913, states, “The Congress shall have power to lay and collect taxes on incomes, from whatever source derived, without apportionment among the several States, and without regard to any census or enumeration” (McNulty, p. 2099). Over the years, the tax procedures have gone several modifications. Nowadays, the marginal federal income tax brackets determine how much an individual owes the Internal Revenue Service based on the income. This means a person earning higher salary is taxed not only more money, but in fact a higher percentage of their income. All the...
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...Efficient Taxation for a Progressive Nation By 3000 BC Egypt had become a nation of stability and distinguished itself as a country with its own system of writing that transmitted wisdom and learning from one generation to the next. A succession of pharaohs had ruled the country to administer the resources and businesses of far-flung communities. In the absence of the use of money, taxes in the form of wheat and other field produce were collected by government bureaucrats based on estimated harvest. As early as the Egyptian times, the government spent revenues that were yet to be collected. In modern times, when we hear about “deficit spending”, we learned it from the Egyptians. The wheat or grains collected were stored in granaries where they are tallied and the records kept in the books. Surpluses after every good harvest were returned to the farmers during times of want and calamities. Others were used to supply the needs of their soldiers in their camps. Before the fall of Roman Empire, Europe had become the world’s central authority and had a established trade network that stretched from England and Germany into the Mediterranean countries. Rome had also provided a means of currency or the use of money for commerce and trade. The Roman government had also left a legacy of extensive system of paved roads, aqueducts or water system, and a form of government based on the local system. From these local governments, an economic system developed where labor was provided by...
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...CHAPTER 22 – PROBLEM 50 & 51 [pic] 50. (LO3) Jack and Jill are owners of UpAHill, an S corporation. They own 25 and 75 percent, respectively. a. What amount of ordinary income and separately stated items are allocated to them for years 1 and 2 based on the information above? |Description | | Year 1 | | Year 2 |Explanation | |Sales revenue |(1) | 175,000 |(2) | 310,000 | | |Cost of goods sold |(3) | (60,000) |(4) | (85,000) | | |Salary to Jack and Jill |(5) | (40,000) |(6) | (50,000) | | |Employee wages |(7) | (15,000) |(8) | (20,000) | | |Depreciation expense |(9) | (10,000) |(10) | (15,000) | | |Miscellaneous |(11) | (7,500) |(12) | (9,000) | | |Total expenses |(13) |(132,500) |(14) |(179,000) |Year 1: (3) + (5) + (7) + (9) + (11) | | ...
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...Many internet marketing agencies use article marketing as one of their top search engine optimization strategies. You can accomplish several things by using this strategy to market your small business online. One of the most important things you can accomplish is to set yourself and your business up as an expert in the particular niche you are in. In your articles you will be giving advice and suggestions on your niche rather than selling your products. When people read your articles on the various article distribution websites and web pages that have published your article on their site they will begin to view you as an expert in the field, so when they need to purchase products in that field they will think of you and come to your site. This is a very powerful sales approach in the market today because people do not want to be sold, they want the feeling they are purchasing something. By using this sales approach you will be giving them the feelings they need to make the sale easier and you will find in the long run you will sell more because of this approach. All of the people that read your article will also have a chance to come to your website through your bio box or resource box. It is a part at the end of the article that tells about you or your company and either has your URL listed in it or a direct link back to your web site, so readers can go directly to your site if they are interested. This link that is in the resource box is very important, equally as...
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...Tax Planning dan Pengendalian Atas Unsur-unsur Objek Withholding Tax (Selain Pph Pasal 21) HUSNUNNIDA MAHARANI MONICA AUDREY LUTFI ARDHANI JOINT PROGRAM – FEB UNIVERSITY OF BRAWIJAYA Withholding tax Sistem perpajakan dimana Wajib Pajak Orang Pribadi maupun Badan Dalam Negeri diberi kepercayaan oleh peraturan perundang-undangan untuk melaksanakan kewajiban memotong pajak atas penghasilan yang dibayarkan kepada penerima penghasilan. Memotong pajak Menyetorkan ke KPP Melaporkan pajak yang dipotong Manfaat Withholding tax Risiko Strategi Fokus Menjadikan waktu lebih efisien Menghemat biaya Meningkatkan akuntabilitas data Meningkatkan kinerja diri WP dan fiskus Meningkatkan kepatuhan Pengumpulan pajak secara otomatis Meningkatkan penerimaan pajak Withholding tax di Indonesia PPh Pasal 4 ayat (2) PPh Pasal 21 / 26 PPh Pasal 15 PPh Pasal 23/26 PPh Pasal 24 PPh Pasal 22 Identifikasi atas Objek Withholding Tax Objek PPh Pasal 22 Objek PPh Pasal 23 Objek PPh Pasal 26 Objek PPh Pasal 4 ayat 2 • kegiatan usaha di bidang impor & bidang lain yang memperoleh pembayaran barang dari APBN / APBD • Bunga, dividen, dan royalti • Penyerahan jasa yang diterima WP badan • Penyerahan jasa yang diterima WP pribadi (selain yang dipotong PPh Pasal 21) • Objek PPh yang dipotong sebesar 20% dari jumlah bruto • Objek PPh yang dipotong PPh 26 dan dipotong pajak 20% dari perkiraan penghasilan neto • Bunga dan diskonto obligasi • Penghasilan dari transaksi penjualan saham • Bunga deposito...
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...1. (TCO A) On July 1, 2010, an interest payment date, $60,000 of Parks Co. bonds were converted into 1,200 shares of Parks Co. common stock, each having a par value of $45 and a market value of $54. There is $2,400 unamortized discount on the bonds. Using the book value method, Parks would record (Points : 4) | no change in paid-in capital in excess of par. a $3,600 increase in paid-in capital in excess of par. a $7,200 increase in paid-in capital in excess of par. a $4,800 increase in paid-in capital in excess of par. | 2. (TCO A) On March 1, 2010, Ruiz Corporation issued $800,000 of 8% nonconvertible bonds at 104, which are due on February 28, 2030. In addition, each $1,000 bond was issued with 25 detachable stock warrants, each of which entitled the bondholder to purchase for $50 one share of Ruiz common stock, par value $25. The bonds without the warrants would normally sell at 95. On March 1, 2010, the fair market value of Ruiz's common stock was $40 per share and the fair market value of the warrants was $2.00. What amount should Ruiz record on March 1, 2010 as paid-in capital from stock warrants? (Points : 4) | $28,800 $33,600 $41,600 $40,000 | 3. (TCO A) On January 1, 2010, Trent Company granted Dick Williams, an employee, an option to buy 100 shares of Trent Co. stock for $30 per share, the option exercisable for 5 years from date of grant. Using a fair value option pricing model...
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...UNIVERSIDAD DE PUERTO RICO EN BAYAMÓN DEPARTAMENTO DE ADMINISTRACIÓN DE EMPRESAS Trabajo de Investigación con Análisis Crítico IVA Tabla de contenido Introducción 1 Impuesto de Valor Agregado 2 El IVA en Latinoamérica 3 El comercio internacional y el IVA 4 El caso de Puerto Rico 6 Conclusión 7 Referencias 9 Introducción El Impuesto de Valor Agregado (IVA) es definido por Vázquez (2011) como “un impuesto que tradicionalmente se ha caracterizado por su relativa simplicidad”. De acuerdo a este autor, el empresario aplica el impuesto a la naturaleza de las operaciones realizadas, sin tomar en considreación quien adquiere o hacia donde se dirigen los bienes. El Departamento de Hacienda de Puerto Rico (2015) indica que dicho impuesto se encuentra vigente en 150 países alrededor del mundo. En el caso de Puerto Rico, no existe dicho impuesto, sin embargo, existe un equivalente conocido como Impuesto de Venta y Uso (IVU), además de que fue contemplada la implementación del IVA durante un periodo de tiempo. A pesar de que por el momento no se ha establecido dicho impuesto en la Isla, la posibilidad de que se implemente existe y es importante que se conozca en detalle de que se trata y como puede afectar la forma de hacer negocios. En el trabajo que se presenta a continuación se discute el trasfondo del IVA y como este impuesto ha logrado ocupar una posición de importancia en diferentes países, particularmente en América Latina. También se presenta información...
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