In 1968, the Supreme Court ruled that citizens can sue to stop the government from spending that violates the Constitution. In a recent 5– 4 decision, the Court ruled that a tax credit that can be used for tuition payments at religious schools was not subject to challenge because a tax credit is not government spending. Do you agree with this decision? Your answer should take advantage of the concept of tax expenditures.
Answer to relevant QuestionsCalifornia law requires registered domestic partners to treat their earnings as common property for state tax purposes. Because federal tax law generally respects state property law, the Internal Revenue Service ruled that ...According to one econometric study, “Denmark and Sweden are on the wrong side of the Laffer curve for capital income taxation” [Trabandt and Uhlig, 2009]. Explain what the words “wrong side” mean in this context. During the 2012 presidential campaign, Mitt Romney argued that even though he paid only about 14 percent in taxes on his investment income, his total tax burden was much higher because the income is also taxed through the ...The ABC corporation is contemplating purchasing a new computer system that would yield a before- tax return of 30 percent. The system would depreciate at a rate of 1 percent a year. The after-tax interest rate is 8 percent, ...According to a New York Times columnist, “The estate tax affects a surprisingly small number of people. In 2003, . . . just 1.25 percent of all deaths resulted in taxable estates, with most of them paying relatively ...
Post your question