...Flat Tax Rate Memo To: From: Date: Re: Benefits/burdens of implementing a “Flat Tax” From the U.S. Federal Government to each individual taxpayer in America, everyone cares about how tax is being paid. In this memo, we will discuss the benefits and the burdens of implementing a “flat tax”. The current U.S. tax system is complex. IRS has six federal income tax brackets ranging from 10 to 35 percent. This progressive tax system punishes the most productive members of society with a higher tax rate. Some scholars, such as Dan Mitchell, argue that, “From an economic perspective, the flat tax and the national sales tax (or fair tax) are virtually identical. Both would junk the current system. Both would restore fairness by taxing at one low rate. Both would eliminate all forms of double taxation.” A flat tax is a single rate that spans all income brackets of taxpayers, rather than the current “progressive” system, which taxes higher-income individuals at increased rates and includes numerous deductions and exemptions. From the article Ramifications of a Flat Tax—Shifting the Burden to the Middle Class, the author states that, because many taxpayers believe the current tax system is not good enough, it needs to be changed. Therefore, the article introduces two flat tax systems to replace the current tax system, one is the Forbes’ Plan and another one is the Hall and Rabushka Plan. The models of these two plans are as follow: 1. Forbes Simulation Model Tax...
Words: 1417 - Pages: 6
...productions have become smaller and more capable of doing more than just making and receiving calls. Today, smartphones are the new device of our era, and with its ever advancing technology, some schools have adapted the smartphone into classrooms as a learning tool. Many schools do not allow this to happen in their curriculum because they can become a distraction, but I believe that smartphones can be beneficial for classroom learning. The first touch screen smartphone was Ericsson R380, which ran the Symbian operating system in 2000. This smartphone had no speakers, headphone jack, expansion card slot, Bluetooth, camera, or GPS (global positioning system). The R380 did support e-mail and SMS (short message service) and it also had voice memo, an organizer, and calculator software. In 2007, the release of Apple’s iPhone was the device that really brought smartphones into the mainstream. The following year, Android smartphones were released, slowly becoming the overall number one OS (operating system) in the United States. (Shinder, 2013) Shinder states, “That as smartphones gain innovative technologies and functionality, they become more complex, resulting in numerous issues and problems.” She goes on to say, “Options and features added to their operating systems make interfaces more complicated to use, which may frustrate users.” (2013) One of the biggest problems that users had about the Windows Mobile OS was that it was too complicated and difficult to use while, iPhone’s...
Words: 779 - Pages: 4
...LIT 1 Part A SOLE PROPRIETORSHIP: Sole proprietorship is the easiest, fast and most common type of business structure to start. It is business that does not have a difference from the owner and the business. Responsible for all your business’s debts, losses and liabilities can even come after personal property. • LIABILITY: Owner has unlimited liabilities because there is no difference between the owner and the business. • INCOME TAXES: The taxes are taxed just like any other form of income. • LONGEVITY/CONTINUITY: There is no partnership and when owner dies the business die since they are one in the same. However the assets can be sold. • CONTROL: The owner makes all decisions, there is no partnership therefore no one else to have input. • PROFIT RETENTION: The owner is free to do as they please with all profits. No rules or restrictions. • CONVENIENCE/BURDEN: This is the most convenient business to set up. The only cost is the actual products needed to run the business. Licenses or marketing supplies or tools needed. • LOCATION: They are no rules only to follow the laws according the state/area you are operating out of. Licenses or taxes follow the state laws. GENERAL PARTNERSHIP: General partnership is when people join together on a business and share all unlimited liabilities. Partnership can be done verbally or in a special agreement written out as an article of partnership, which can lay out all the details of the partnership. Like...
Words: 2173 - Pages: 9
...promote unity, coherence, and co-operation between fundamental organizational proceedings and ethical codes of conduct. They need to utilize accessible technology to allow for the corporation to demonstrate and enforce moral and ethical standards with more ease. Upholding strict standards of ethics is what fosters common belief and practice in other morals such as responsibility, honesty, trust, and equality for all. Organizations are each unique in their operations, and therefore they will need to create a code of conduct best suited to their specific demands. This will allow the employees to have clearer cut guidelines to be able to better evaluate their actions in different scenarios. This is not always fool proof; it can still be taxing at times to enforce even ethical standards that are established. Ethical codes set the foundation for all business proceedings, relations, and revenue. In the company’s ethical code it should establish guidelines for topics such as use of internet/company electronics, customer interaction, general conduct, employee relations, and social expectations of employees and the organization as a whole. There are more and more organization that uses technology to monitor their employee communication and their productivity. Technology helps establish ethical standards in the work place by implementing a forum where the...
Words: 1163 - Pages: 5
...In the later 19th century, Finance was a part of the Economics. But due to the globalization and more expansion of international trade, Finance plays the major role for the economic development. The development of a modern economy would not have been possible without the use of money. Bank is an important and essential financial institution for the necessity of the use of money and the protection of the money. Bangladesh is now integral part of global market. As such there is an urgent requirement for Bangladesh to place the traditional banking pretties in harness with the global trades of a free market economy by following international Banking customs, practices and standards. Today clients of a bank in Bangladesh are exposed as well as interNational markets. They have to stay update with their practice and standards to meet the demands of achieving harmony in the high standards of a free economy. Rationale of the Study: Now a days banking sector have built up as the most important player of the economy. Economists have observed that loan is of the most important aspects of economic activity because of its great role in establishing various projects that generates production and thus generating employment. The only important aspect of loan is economic and social development in addition to achieving a suitable profit margin. Islamic banks consider loan as the basic motivation for community development and a means to get rid of social and economic problems through employment...
Words: 3793 - Pages: 16
...Memo To: Chief Executive Officer From: Nicholas Petrovich cc: Controller Date: February 12, 2013 Re: Income Taxes After reviewing Deloitte (D) guidance and the requirements of the Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) 740, Income Taxes, we addressed (1.) What are the four possible sources of taxable income according to ASC 740? (2.) How much of the reversing taxable temporary differences may be considered in estimating taxable income? (3a.) In evaluating the income LOL is projecting related to future operations, is LOL in a cumulative loss position? (3b.) May LOL exclude the impact of the impairment of the non deductible goodwill when estimating future taxable income? (3c.) May LOL exclude the expense from writing off the accounts receivable from the customer who declared bankruptcy when evaluating the projections of future income? (3d.) Does the evidence of historic losses affect our ability to accept the company’s estimate of future growth? (3e.) In evaluating the income that LOL is projecting related to future operations, what evidence might you ask for to support the company’s projections? (4.) Would the tax- planning strategy to sell and lease back manufacturing equipment be a tax- planning strategy that is considered prudent and feasible? (5.) Would the tax-planning strategy to sell but not lease back the primary manufacturing facility be a tax-planning strategy that is prudent and feasible? We first looked to...
Words: 1324 - Pages: 6
...ACTG 493, Accounting Cases, Research and Analysis Group Case 1 Memorandum To: Professor Siyi Li From: Group 4 Date: July 5, 2016 Subject: eVade Pays Up (Deloitte Trueblood Case 14-07) I. Case Description and Key Facts eVade is an online retailer that fulfills its orders by shipping its products directly to customers across all 50 states in the U.S. eVade does not have a brick-and-mortar store presence in any state, but does operate distribution centers in various states, including State X. eVade does not collect or remit sales tax to State X. This practice is consistent with eVade’s practice in all 50 States. In recent court rulings, State X has taken the position that operating a distribution center within the state constitutes nexus and thus would subject any company operating a distribution center to collect and remit sales tax on all sales made within the state. As of December 31, 2011, eVade has operated a distribution center within State X for the past five years. Although the company considers the risk of detection to not be probable, eVade estimates total sales tax payable to State X to be $50 million. In addition, eVade estimates that $6 million in interest and $4 million in penalties are also payable to the state. On March 15, 2012, a tax amnesty program was established by the Governor of State X. The program provides that an unregistered taxpayer who voluntarily registers to collect sales tax prospectively will be forgiven...
Words: 4930 - Pages: 20
...ACTG 4400 Taxation Dr. Tripp Final Paper Qixi Huang Are Settlement Payments Deductible or Not? The law dictionary online defines “settlement” as a resolution of a lawsuit or a legal dispute without a final court decision. “Settlement payment,” in this essay, also refers to payments to governments because of fines or penalty. Usually, settlement achieves through negotiations among different parties through attorneys. When agreements are reached, “settlement payments” occur. Hence, people consider settlement payments as prices that one party pay to the others for their wrongful behaviors or violation of laws. For tax purposes, are settlement payments deductible? According to Internal Revenue Code (IRC) Section 162(a), any ordinary and necessary business or trading expenses are deductible during the current taxable year. That is to say if any settlement payments meet criterions of deduction under 162(a), but not in the exception of Section 162, should be deductible. In real court cases, IRS uses the exceptions of Section 162 to disallow settlement payments. Nowadays, more court cases and arguments appear to show that even though some settlement payments are in the exceptions of 162 (a), they can also be deducted. The relief of settle payments deductibility causes disagreements among tax professionals. Some believes settlement payments may be composed of deductible compensatory damages from non-deductible punitive damages; however, others worries that allowing deductibility...
Words: 2916 - Pages: 12
...U.S. Federal Income Tax Information relating to Sara Lee Corporation’s Distribution of DE US Inc/DEMB 1753 common stock on June 28, 2012 Updated 7/25 After the close of business on June 28, 2012, Sara Lee Corporation spun-off its international coffee and tea business through a stock dividend to Sara Lee shareholders. Several separate transactions occurred in connection with the spin-off: First, Sara Lee distributed all of the common stock of DE US, Inc., the U.S. subsidiary that held Sara Lee’s international coffee and tea business (“CoffeeCo”), to an exchange agent on behalf of Sara Lee shareholders of record as of the record date (the “distribution”). The CoffeeCo shares were not physically delivered to you, but were held by the exchange agent for your benefit until completing the merger (described below). Next, CoffeeCo paid a $3.00 per share special dividend to CoffeeCo’s shareholders of record immediately after the distribution of the CoffeeCo common stock, which were the Sara Lee shareholders of record as of the record date. Then CoffeeCo merged with a subsidiary of D.E MASTER BLENDERS 1753 N.V., a Dutch company (“DEMB”), with CoffeeCo becoming a subsidiary of DEMB (the “merger”). In the merger, each share of CoffeeCo common stock was exchanged by the exchange agent for the benefit of the shareholders for one ordinary share of DEMB. Shares of DEMB are listed for trading on the NYSE Euronext Amsterdam and are denominated in Euros. As a result, Sara Lee shareholders...
Words: 2125 - Pages: 9
...LEGAL ISSUES IN BUSINESS ORGANIZATIONS Legal Issues in Business Organizations Toya M. Smalls Student ID: 000295300 LIT1 Task 310.1.2-01-06 June 28, 2013 Legal Issues in Business Organizations A business can be organized in one of several ways and the form its owners choose will affect both the company’s and owners’ legal liability and income tax treatment. It is important that the business owner considers these different forms of business organizations: sole proprietorship, partnership, and corporations. Various legal structures are available to assist business owners with the organization of their business. These legal structures make provisions for the business’ liability, income taxes, continuity, control, profit retention, and regulatory requirements. Each organizational structure differs and possesses advantages and disadvantages. The first important decision that a business owner will make is selecting an organizational structure that will capitalize advantages and curtail disadvantages for their business. Legal Issues in Business Organizations Sole Proprietorship A sole proprietorship consists of one individual doing business and is the most common and simplest form of business to establish. · Liability: Sole proprietors have unlimited liability, which is a clear disadvantage. They are personally responsible for the obligations of the business, including the actions of employees representing the business. · Income Taxes: A sole...
Words: 2373 - Pages: 10
...Recruitment and Staffing Proposal Kofi Djanphie HRMN 400 Professor Smoot 9/27/15 Cover Memo TO: CEO FROM: Kofi Djanphie DATE: September 27, 2015 SUBJECT: Recruitment and Staffing The recruitment and selection process contributes significantly to the attainment of adequate personnel. In order to sustain optimal functionality within a business or to incite improvements in recommended areas, a company must be staffed with the appropriate people. “Recruitment and selection methods are particular means to develop the practices of each stage in the recruitment life-cycle and process, from sourcing candidates to the hiring decision” (Articles and News on Recruitment Methods, n.d., para. 3). Searching for and acquiring senior staff does not differentiate from the procedure that is involved with non-management candidates. They both include choosing from an array of recruitment and selection styles. Three recruitment approaches have been designated to provide HSS with the greatest opportunity to encounter the most competent individuals. Also, three selection methods were chosen to assist with the difficulties that can arise during the hiring process such as making an effective decision. Business strategy requires a cost/benefit and metrics analysis to determine areas of success and failure. An organization needs to know what worked and what did not. This ensures that ineffective practices are excluded from future proceedings that coerce the squandering of limited resources...
Words: 2569 - Pages: 11
...I:3-3 It is much easier to administer the tax law based on the accounting concept of income instead of the economic concept. Also, wherewithaltopay is greater when income is taxed as it is realized. pp. I:33 and I:3-4. I:3-4 The concept of wherewithaltopay means that a tax should be imposed when the taxpayer can most easily pay. A taxpayer who owns property that has increased in value does not necessarily have the funds needed to pay any tax. Taxing the gain when it is realized often means that the tax becomes due at the same time the taxpayer collects the sales price. p. I:3-4. I:3-5 A loan repayment is not consistent with the normal meaning given to the word income. A taxpayer is no better off because a loan is repaid. There has been no economic benefit. As a result the repayment of a loan is not taxable simply because it is not income. p. I:3-3. I:3-6 Congress taxes prepaid rental income because of concern that taxpayers might otherwise spend the money and then be unable to pay the tax when it comes due. Taxing such amounts is to tax income when taxpayers have the greatest wherewithal to pay. The problem created for taxpayers is that they are taxed before they incur related expenses. Repairs,...
Words: 6546 - Pages: 27
...Sarbanes Oxley Act Joslin Cuthbertson Hampton University Abstract The Sarbanes-Oxley Act came into effect in July 2002 and introduced major changes to the guidelines of corporate authority and financial practice. It is named after Senator Paul Sarbanes and Representative Michael Oxley, who were its main originators. The Sarbanes Oxley Act set a number of non-negotiable deadlines for publically traded companies to comply to. The Sarbanes-Oxley Act is arranged into eleven titles. As far as compliance is concerned, the most important section within these eleven titles is usually considered to be Section 404, which deals with internal controls. Since 2002, there has been a lot of debate about whether the act has positively or negatively affected corporate America. In this paper I have discussed the opinions of both sides of the argument. The Sarbanes-Oxley Act is a bill passed by Congress in 2002 after several corporations took actions that caused their companies to fail. These companies include Enron and WorldCom. As a result of these actions, stockholders lost confidence in the financial system. The intent of the bill is to protect investors of corporations by making the corporations accountable for any unacceptable accounting errors and practices. The Act is named after its main proponents, Senator Paul Sarbanes and Representative Michael Oxley. The Acts real name is the Public...
Words: 2668 - Pages: 11
...ANALYSIS OF SELECTED ISSUES RELATING TO NATIVE AMERICAN TRIBES AND THEIR MEMBERS Scheduled for a Public Hearing Before the SENATE COMMITTEE ON FINANCE on May 15, 2012 Prepared by the Staff of the JOINT COMMITTEE ON TAXATION May 14, 2012 JCX-40-12 CONTENTS Page INTRODUCTION AND SUMMARY I. 1 GENERAL RULES REGARDING THE TAXATION OF INDIAN TRIBES AND TRIBAL MEMBERS AND THE TAXING POWERS OF INDIAN TRIBES ................. 3 A. Income Taxation of Indian Tribes and Wholly Owned Tribal Corporations................ 3 1. Federal income taxation of Indian tribes and wholly owned tribal corporations ... 3 2. State taxation of Indian tribes ................................................................................. 4 B. Tax Treatment of Enrolled Members of Indian Tribes ................................................. 7 1. Federal tax............................................................................................................... 7 2. State tax................................................................................................................... 7 C. Taxing Powers of Indian Tribes .................................................................................... 9 D. Alaska Native Settlement Trusts................................................................................. 10 II. SELECTED FEDERAL TAX RULES AND ISSUES RELATING TO INDIAN TRIBES AND THEIR MEMBERS ...........................................................
Words: 17292 - Pages: 70
...Every firm (small or large), cafe, restaurant are the active microeconomics households, which influence the situation of the whole ,market. It is possible, that a single small firm can produce high-quality wares which are praised by people and very soon other firms, which produce similar wares but of lower quality will possible bankrupt being unable to compete with that one (Howson, Cindy, Successful Business Intelligence 2013). With the run of time that small firm can turn into a great company or corporation and become a leading monopolistic on the market. This is why I have decided to research Time Warner Cable. The history of the company is unlike any other with their cutting edge digital technology, range of home entertainment and information choices for the whole family to enjoy, and superior customer service that demonstrates customer satisfaction is the company's number one priority. In the late 1940s, entrepreneurs using simple antennas an Army surplus coaxial cable created the country's first cable television system and revolutionized the way Americans watched television (Warner Sperling, Cass, The Brothers Warner 2008). More than 70 years later, Time Warner Cable (TWC), the second largest cable provider, owns and manages advanced, well clustered cable systems throughout the United States and is ready to embark on it's next life phase of merging with Charter Communications. With the spread of the medium of television in the years following World War II, entrepreneurs...
Words: 6422 - Pages: 26
