Taxes
Why does income tax penalize savers but consumption tax would not?

Consumption tax differs from income tax in that it allows taxpayers to deduct any savings they may have from their overall income prior to calculating their taxes (p.644). This type of taxation has become increasingly advocated due to widespread low savings among people in the United States and long-term negative effects this may have on the economy (p.644). With a consumption tax, both savers and non-savers are taxed based on the figures associated with their labor income alone (p.649). However, with the consumption tax, those who have saved money are not required to pay any sort of tax on income earned from accrued interest in their accounts, which is different from requirements with regard to income tax (p.649). This illustrates how savers are penalized with income tax because they are taxed on interest accrued. Overall, the consumption tax has more…...

However, a related New York Times article on the story reported: "In court papers, the I.R.S. said that First Data had actively marketed and sold offshore services to American merchants, typically investment and Internet-commerce advisory shops, who in turn used the service to help their clients hide taxable income…In 2002, the unit [Cardservice International and now called First Data Independent Sales] which works with 3,200 independent sales offices and agents to sell and provide financial processing services, began marketing offshore processing services with First Atlantic Commerce, an e-commerce company in Bermuda, according to court documents" (Browning 2009). The IRS states that First Data, "clearly markets offshore merchant account services to U.S. merchants as a means of tax avoidance by advertising its services on the eb sites of foreign promoters of abusive offshore tax schemes and products" (Browning 2009).
The pressure placed upon First Data is emblematic of the greater scrutiny…...

mla

Works Cited

100 billion the country could use. (2009, March 14). Editorial. The New York Times.

Retrieved April 18, 2009 at  http://www.nytimes.com/2009/03/14/opinion/14sat1.html 

Browning, L. (2009, April 15). Credit card processor asked for offshore data. The New York

Times. Retrieved April 18, 2009 at  http://www.nytimes.com/2009/04/16/business/16tax.html?_r=1&partner=rss&emc=rss

S. domestic law, a U.S. citizen or resident (Non U.S. person) who is a beneficiary of a foreign retirement plan would be subjected to the existing U.S. income taxation on all of the income that is accrued in their foreign investment plans even though their income is never currently distributed per se to the beneficiary. This should be the case unless the foreign retirement plan accounts as the employee's trust as described in section 402(b) of the U.S. Internal evenue Code and the said individual is not one of the highly compensated workers who is subjected to the meaning of the section 402(b)(4)(a) Internal evenue Code.
Therefore, as long as a given foreign retirement plan accounts as an employee's trusts with the person not being one of the highly compensated workers, then there is never an inclusion that is required by law. On the contrary, if the given foreign retirement plan…...

mla

References

Augustyn, FM (1985) "A Primer for Incorporating Under the Income Tax Laws of France, Germany, or the United Kingdom," 7 J. International. L. BUS. 267

Ault, Hugh J., and David F. Bradford, "Taxing International Income: An Analysis of the U.S. System and Its Economic Premises," in Assaf Razin and Joel Slemrod, eds., Taxation in the Global Economy, Chicago, IL: University of Chicago Press, 1990, pp. 11-52; reprinted in Robert Z. Aliber and Reid W. Click, eds., Readings in International Business: A Decision Approach, Cambridge, MA: The MIT Press, 1993, pp. 365-406.

Doggart, C (1987) Tax havens and their use, 6-7

Drucker, J. (2008) "Corporate Tax Reporting Draws GAO Scrutiny." The Wall Street Journal, A2

The state of Pennsylvania also levies additional taxes on its citizens.
Taxes are levied not only for individuals, but also for businesses. Taxes are levied differently for incorporated and non-incorporated businesses. Incorproated businesses are considered an independent entity and is therefor taxed independent of its owners. This is commonly referred to as double taxation meaning the owner of the corporation must pay taxes twice, once on the salary derived from the business and once on the busisiness's total income. Non-incorporated businesses are viewed as being an extension of the individual tax payer, so the payer must only file one form and pay one total amount (571).

State taxes are linked to Federal Income Taxes in that Federal Taxes deduct the amount owed in state taxes from the tax payer's gross income. This is meant to ensure that tax payers are not taxed twice for money that was already paid to the…...

Later, however Democratic leaders approved a bipartisan plan, minus the homestead tax increase. ("State income tax unthinkable," 2007)
Income Tax Proponents, Opponents and Components Income tax proponents argue that even with Florida's exemptions for food and medicine, poorer people pay a higher percentage of their income in the form of sales tax than wealthier citizens. They argue that an income tax would prove to be fairer as sales tax is regressive. These individuals to support Florida adopting an income tax insist that this method of taxation, unlike the sales tax, could be adjusted to shift the burden to individuals who can afford to pay more than those who are poorer. ("State income tax unthinkable," 2007) Iris Lav, the center's deputy director, nevertheless insists that the probability of anyone persuading Floridians that they need to adopt an income tax, equates to: "a little bit of 'If fishes could fly'."

Dominic Calabro, president…...

mla

References www.questia.com/PM.qst?a=o&d=5017547397

Achenbaum, W.A. (2006). Land of Sunshine, State of Dreams: A Social History of Modem Florida. Journal of Social History, 40(1), 262+. Retrieved October 10, 2008, from Questia database:  http://www.questia.com/PM.qst?a=o&d=5017547397 .

A www.questia.com/PM.qst?a=o&d=5016653967

Archibald, R.B., & Feldman, DH (2006). State Higher Education Spending and the Tax Revolt. Journal of Higher Education, 77(4), 618+. Retrieved October 10, 2008, from Questia database:  http://www.questia.com/PM.qst?a=o&d=5016653967 .

Bell, Michael, Brunori, David, Green, Richard, Wolman, Hal, Cordes, Joe, and Qadir, Tanya. (2005, August). "GWIPP WORKING PAPER SERIES State and Local Fiscal Policy and Economic Growth and Development." Working Paper Number 26. The George Washington University. Retrieved October 10, 2008, at  http://www.gwu.edu/~gwipp/papers/wp026 .

UK Government estore the 50% Additional ate of Income Tax?
The United Kingdom has developed to become one the highest taxed nations across the globe despite impaired competitiveness and stifled economic growth. Unlike most OECD countries that have lessened their tax burdens since 1997, UK taxation has increased, which has resulted in reduced competitiveness of the country's position as a low tax regime. The other characteristics of UK taxation include forcing taxpayers into higher rate tax bands, which enforces higher tax rates for more people. However, in the past few years, there have been debates and controversies on whether the United Kingdom government should restore the 50% additional rate of income tax. This debate or controversy has been characterized with arguments and counter-arguments in favor and against such a move respectively.

ecent History of the Additional ate of Income Tax

As previously mentioned, the United Kingdom is ranked among the highest tax…...

mla

References:

Goodley, S. 2014. Labour's 50p tax rate: what you need to know. The Guardian. [Online]. 26th

January 2014. Available at:   Accessed 4th December 2014.http://www.theguardian.com/money/2014/jan/26/labour-50p-tax-rate-what-you-need-to-know 

Merrick, J. 2014. 'Labour will bring back 50p income tax for earners' says Ed Balls. The Independent. [Online]. 25th January 2014. Available at:   Accessed 4th December 2014.http://www.independent.co.uk/news/uk/politics/labour-will-bring-back-50p-income-tax-for-top-earners-says-ed-balls-9084983.html 

Nelson, F. 2014. Why Ed Balls is deceiving us about his plans, and the 50p tax. The Spectator.

Finally, a 1998 Center on udget and Policy Priorities report, examined research, data and findings on the EITC found that when this research was summarized to its substantiate bits, several positive themes over the benefits of the EITC emerged. They include (Greenstein & Shapiro, 1998):

Substantial positive effects on inducing single parents to work. A study by Northwestern University economists ruce Meyer and Dan Rosenbaum. Meyer and Rosenbaum found that more than half of the substantial increase in employment rates among single mothers over the 1984 to 1996 period was due to EITC expansions; a larger effect on single mother employment than all other factors combined (Greenstein & Shapiro, 1998).

EITC offsets between one-fourth and one-third of the decline during the past 20 years in the share of national income received by the poorest fifth of households with children (Greenstein & Shapiro, 1998).

Among working families, particularly in the south where working families…...

mla

Bibliography

ACORN Financial Justice Center. (2004). Increasing Incomes & Reducing Rapid Refund Rip Off. Washington, DC.

Cancian, M., & Levinson, a. (2005). Labor Supply Effects of the Earned Income Tax Credit: Evidence from Wisconsin's Supplemental Benefit for Families With Three Children. Journal of Economic Literature .

Center on Budget and Policy Priorities. (2009, December 4). Policy Basics: The Earned Income Tax Credit . Retrieved March 20, 2010, from Center on Budget and Policy Priorities:  http://www.cbpp.org/cms/index.cfm?fa=view&id=2505 

Cordes, J.J., Ebel, R.D., & Gravelle, J.G. (2005). The Encyclopedia of Taxation and Tax Policy, Second Edition. Baltimore: Urban Institute Press.

This generous act not only saves the taxpayer some extra cash come pril, but it also helps a number of charities across the country. Charities can either use donated vehicles for their own use or they can auction them off in order to use the cash to help those in need. Either way, the charity is getting great use out of the old bucket which was just a nuisance to someone else.
Rules regarding donations have changed drastically over the years. In previous years, all one would need to do in order to donate a vehicle was to claim the market worth of the vehicle to the charity receiving the donation. They would then give you the paperwork necessary in order to claim the donation in one's tax returns for that year. However, in more recent years, this system has changed thanks to people who had been abusing the chartable…...

mla

A prime example of how charitable donations work and save the taxpayer money is the act of donating one's vehicle to a charitable organization. This generous act not only saves the taxpayer some extra cash come April, but it also helps a number of charities across the country. Charities can either use donated vehicles for their own use or they can auction them off in order to use the cash to help those in need. Either way, the charity is getting great use out of the old bucket which was just a nuisance to someone else.

Rules regarding donations have changed drastically over the years. In previous years, all one would need to do in order to donate a vehicle was to claim the market worth of the vehicle to the charity receiving the donation. They would then give you the paperwork necessary in order to claim the donation in one's tax returns for that year. However, in more recent years, this system has changed thanks to people who had been abusing the chartable donation tax breaks. People wanting to cheat on their taxes had been claiming their cars to be worth more than market value; this then ended up costing the government millions of dollars. New restrictions limit not only the owner, but also the charities receiving the donations as well. The actual deductible amount now depends on the worth of the vehicle, along with how the receiving charity uses that said vehicle. All vehicles, including not only cars but also used panes and oats, are more limited as tax deductions when they exceed the amount of $500. Today, if one's vehicle is worth more than $500, the actual tax deduction is based on how much the charity actually sold the vehicle for. However, there are some loop holes which allows tax payers to receive the full value for the vehicle. Kay Bell explains that is one's vehicle is used in a progressive way by the charity; donors can file for the original value of the car. If one donates one's vehicle, notice of the eventual fate of that vehicle must be received by the charity which received it within thirty days. One must also include proof of the donation with one's tax returns, when "previously, such receipts were generally only kept by the taxpayer in case the IRS questioned the claim deduction," (Bell 2007).

Donations do save you money on your taxes. However, they are in the form of small deductions in relation to one's gross income and don't do much on the scale of everyday life for the taxpayer. These breaks are more for encouragement. The idea is not only to encourage donations, but to also give small rewards to those who do make the decision to donate items in order to help charities around the country.

consumption tax alternatives: retail sales tax, flat tax and personal consumption tax. Justifications for tax reform range from the need to simplify the current system to raising revenues to modifying social policy. In the face of growing demands by politicians and taxpayers alike, the topic of tax reform has produced alternate federal income tax proposals. This essay compares income tax to consumption tax, and also reviews the retail sales tax, flat tax and personal consumption tax systems. The comparisons include discussion of differences between proposals, relative degree of effectiveness, as well as ease of implementation. Each of the major categories proposed accomplish tax reform with varying degrees of success, which must be considered along with their associated trade-offs. This essay examines some specifics of those approaches.
Reasons for Tax Reform

Growing support for tax reform comes from both politicians and taxpayers alike. Surveys conducted during the 2009 tax filing season showed…...

mla

Works Cited

AICPA. (2009). Tax reform alternatives for the 21st century. New York: American Institute of Certified Public Accountants, Inc.

Citizens for Tax Justice. (2011). Analysis: 12 corporations pay effective tax rate of negative 1.5% on $171 billion in profits. Retrieved August 18, 2011 from:  http://www.ctj.org/pdf/12corps060111.pdf 

Fichtner, J.J. (2005). Reforming the U.S. corporate tax system to increase tax competitiveness. Joint Economic Committee U.S. Congress. Retrieved August 18, 2011 from:  http://www.house.gov/jec/CorporateTaxReform.pdf 

Graetz, M.J. (2006). 100 million unnecessary returns: A fresh start for the U.S. tax system. Retrieved August 18, 2011 from:  http://www.nasi.org/usr_doc/Michael_Graetz_Background_VAT_Paper_09_19_06.pdf

UK Government estore the 50% Additional ate of Income Tax
The ecent History of the Additional ate of Income Tax

It is important to note, from the onset, that income tax remains the government's largest revenue source -- effectively raking in an average of 30% of the total tax collected. In essence, every individual has what is referred to as personal allowance on income tax, whereby every tax year, all incomes that do not exceed the set allowance are not taxed. All other income is subject to the various tax rates captured in several bands. In the year 2009 budget, it was announced that beginning April 2010, individuals raking in incomes exceeding £150,000 would be subject to a new 50% tax rate (HM evenue & Customs, 2014). The previous rate, prior to the introduction of the top rate by the Labor government had been 45p. However, the incoming government reduced the…...

mla

References

Fleming, L., 2004. Excel HSC Business Studies. Glebe NSW: Pascal Press.

HM Revenue & Customs, 2014. Guidance -- Rates and Allowances: Income Tax. [online] Available at: < [Accessed 2nd Dec 2014].https://www.gov.uk/government/publications/rates-and-allowances-income-tax/rates-and-allowances-income-tax>

Parenti, M., 2010. Democracy for the Few. 9th ed. Mason, OH: Cengage Learning

The Economist, 2009. Resenting the Rich. [online] Available at: <   [Accessed 2nd Dec 2014].http://www.economist.com/debate/days/view/293 >

As mentioned above, several organizations are making efforts for advertising this measure. Even so, the IS expects that a higher number of first-time applicants intend to use the EITC benefits. The factors that led to this situation are represented by the high turnover rates determined by the crisis.

In addition to this, several studies in the field have observed the fact that the level of EITC influences wages and the proportion of the workforce. In other words, EITC has been observed to lead to reduced wages. This result of the EITC affects eligible and non-eligible workers, which are disadvantages by the EITC introduction. EITC also leads to increased workforce, which determines improved sustainment of the economic situation.

eference list:

1. Qualifying Child ules (2010). Internal evenues Service. etrieved February 15, 2011 from http://www.irs.gov/individuals/article/0,,id=218779,00.html.

2. Program Areas (2008). The Piton Foundation. etrieved February 15, 2011 from http://www.piton.org/index.cfm?fuseaction=Content.article1&CFID=14333438&CFTOKEN=22349543.

3. Dougherty, C. (2011). Alternate Measure Says Poverty Didn't…...

mla

Reference list:

1. Qualifying Child Rules (2010). Internal Revenues Service. Retrieved February 15, 2011 from  http://www.irs.gov/individuals/article/0,,id=218779,00.html .

2. Program Areas (2008). The Piton Foundation. Retrieved February 15, 2011 from  http://www.piton.org/index.cfm?fuseaction=Content.article1&CFID=14333438&CFTOKEN=22349543 .

3. Dougherty, C. (2011). Alternate Measure Says Poverty Didn't Rise. The Wall Street Journal. Retrieved February 15, 2011 from  http://blogs.wsj.com/economics/2011/01/06/alternate-measure-says-poverty-didnt-rise-in-2009/?KEYWORDS=earned+income+credit .

4. Rothstein, J. (2009). Is the EITC as Good as an NIT? Princeton University. Retrieved February 15, 2011.

countries that do not have an income tax. The first are small tax-shelter countries that seek to attract high net worth individuals. Their economies of tiny, and based on the value of transactions that such individuals bring to the country. Monaco, for example, requires substantial amounts of money to be deposited into its banks, which allow those banks to lend the money out (Maverick, 2016). Such countries succeed because they are tiny, and have minimal local populations and infrastructure needs. Another type of tax-free country is the failed state. A place like Somalia lacks the infrastructure for collecting taxes, and therefore lacks them. But such countries also provide zero services for their people, and are entirely unattractive places in which to live, despite on paper being the libertarian paradise of zero government intervention in daily life. The third category are countries that generate sufficient revenues in other ways that…...

mla

References

Bouyamoum, A. (2016). Get ready for taxes, Christine Lagarde tells UAE and other Gulf nations. The National. Retrieved May 13, 2016 from  http://www.thenational.ae/business/economy/get-ready-for-taxes-christine-lagarde-tells-uae-and-other-gulf-nations 

CIA World Factbook (2016). United Arab Emirates. Central Intelligence Agency. Retrieved May 13, 2016 from  https://www.cia.gov/library/publications/the-world-factbook/geos/ae.html 

Maverick, J. (2016). Five countries without income taxes. Investopedia. Retrieved May 13, 2016 from  http://www.investopedia.com/articles/personal-finance/100215/5-countries-without-income-taxes.asp 

Reuters (2016). U.S. retail sales rose 1.3% in April versus 0.8 increase expected. CNBC. Retrieved May 13, 2016 from  http://www.cnbc.com/2016/05/13/us-retail-sales-rose-13-percent-in-april-vs.-08-increase-expected.html

Dropping or Lowering Corporate Taxes
This is a paper with two charts concerning corporate taxes. Corporations are taxed under a tax rate structure depending on the income. There has been talk about dropping the corporate tax. This paper will discuss the pros and cons of this. hat methods can be used to drop or lower corporate taxes and why?

HO CORPORATE TAXES HELP OUR ECONOMY

here did the corporate income tax begin? How does it affect our economy? hat is the future of the corporate income tax? ill deleting corporate income tax be the answer for the economy? hat about cutting part of this tax? How does the corporate income tax help the economy? These are questions that will be answered in this paper as well as how the corporate tax is affecting our economy now.

The Beginning of Corporate Income Tax

How the corporate tax began is an example of why tax systems…...

mla

Works Cited

Bonura, Chris; Finn, Kathy; Kamerick, Megan; McNulty, Ian; and Stuart, Stephen. "Tax-free Corporations" New Orleans City Business. 12/25/2000. Vol. 21. Issue 27. p.11

Business Tax Cuts a Logical Component of Economic Stimulas Package" New Report on Corporate Income Taxes Shows Rising Collections. Federal Tax Burdens and Expenditures by State.  http://www.taxfoundation.org/corporatetaxes.html 

Current Corporate Income Tax Developments (Part II). Tax Advisor. April 2002. Vol. 33 Issue 4. p.234

Edwards, Chris. "Reducing Business Tax Penalties to Spur Growth" February 13, 2002  http://www.cato.org/cgi-bin/scripts/printech.cgi/dailys/02-13-02-2.html

Tariffs Tariffs were used to fund the United States government prior to the imposition of the permanent income tax mainly because it did not cost so much to run the federal government: there were fewer expenses in terms of funding social services, such as Medicare, Social Security or other unemployment. Tariffs brought in sufficient funds for what was required of the government and the government had even maintained a balanced budget for a time. This was the case under President Andrew Jackson, who proclaimed:
Through the favor of an overruling and indulgent Providence our country is blessed with a general prosperity and our citizens exempted from the pressure of taxation, which other less favored portions of the human family are obliged to bear.... How gratifying the effect of presenting to the world the sublime spectacle of a Republic of more than 12,000,000 happy people, in the fifty-fourth year of her existence, after…...

mla

Works Cited

Eddlem, Thomas. “Before the Income Tax.” New American, 2013.

https://www.thenewamerican.com/culture/history/item/14268-before-the-income-tax

Tax Advise
Table of Contents (optional)

Louise is aged 50 and single. Since 1994 she has carried on a retail business as a sole trader. Her trading profits as adjusted for tax purposes and after capital allowances, for the year ended 30th April 2009 were $150,000.

The business is carried out from a number of valuable retail outlets, all of which are owned by Louise personally. These units have been acquired over a number of years since 1994 and their market values have increased considerably in recent years.

Apart from her single personal allowance tax credit, Louise is entitled to income tax relief in respect of $10,000, which she pays annually to a evenue approved pension scheme.

Louise's personal living expenses and other financial commitments total $50,000 per annum (including the contribution of $10,000 to the evenue approved pension scheme referred to above).

Louise is considering transferring her business to a limited company and has asked…...

mla

References

Maertin, James CPA. U.S. Tax Preparation Worldwide. [

 http://www.jamesdance.com/deductions.htm %5D

  "HM Revenue and Customs: About Us." Hmrc.gov.uk. Crown Copyright. 2005-04-18.http://www.hmrc.gov.uk/menus/aboutmenu.htm 

Understanding the law on e-commerce is crucial for businesses operating online. Here are a few reasons why it is important:

1. Compliance with regulations: E-commerce laws are in place to protect consumers and ensure fair business practices. By understanding and following these regulations, businesses can avoid legal issues and penalties.

2. Protection of personal data: Being aware of laws governing the collection and handling of personal data is essential for safeguarding customer information. Compliance with data protection laws is crucial to maintaining trust and credibility with customers.

3. Intellectual property rights: E-commerce businesses must understand laws related to trademarks, copyrights, and patents to....

Key Tax-Saving Strategies for Individual Employees in Financial Planning Literature
1. Maximize Retirement Contributions:
401(k) and 403(b) Plans: Contributions are made pre-tax, reducing taxable income. Withdrawals are taxed at retirement rates, potentially lower than current rates.
Traditional IRAs: Contributions up to a certain limit are deductible, reducing taxable income. Withdrawals are taxed as ordinary income.
2. Utilize Health Savings Accounts (HSAs):
Contributions are made pre-tax, reducing taxable income.
Earnings grow tax-free.
Qualified withdrawals for medical expenses are tax-free.
3. Opt for Flexible Spending Accounts (FSAs):
Employee-funded accounts allow individuals to set aside money for healthcare or dependent care expenses pre-tax, reducing taxable income.
4.....

Government Programs to Support and Protect Vulnerable Workers

In the contemporary workforce, a significant proportion of individuals face various forms of vulnerability, rendering them susceptible to exploitation and economic hardship. Government programs play a crucial role in mitigating these vulnerabilities and ensuring workers' well-being. By adopting comprehensive and well-designed programs, governments can empower vulnerable workers, promote equitable opportunities, and foster a more inclusive and sustainable labor market.

1. Wage and Hour Protections:

Minimum wage laws, overtime pay regulations, and wage theft prevention measures are essential pillars of worker protection. Governments should ensure compliance with these regulations and provide robust enforcement mechanisms. This safeguards....

1. The Impact of Tax Policy on Housing Market Stability An In-depth Analysis

2. Exploring the Link Between Tax Incentives and Housing Market Volatility

3. Proposals for Tax Policy Reforms to Promote Long-term Housing Market Stability

4. The Role of Tax Credits in Mitigating....