For many years the IRS has talked about switching to a flat tax, wherein taxpayers would...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
For many years the IRS has talked about switching to a flat tax, wherein taxpayers would pay a "flat" or set percentage of tax on their gross income. Congress has not been too quick to act on this. A very simplistic example of how this would work would be, if your gross income was $60,000 and the flat tax rate was 10%, then your taxes would be $6,000. Under this system, itemizing deductions would be done away with and a lot of the adjustments to lower income to taxable income that we have in place now would be eliminated; however there would still be some consideration as to an individual's filing status, age, number of dependents and possibly types of income. A. Do you think our present tax system should be reformed? Why or why not? B. What are your thoughts on a system using a flat tax rate without a lot of adjustments to income to reduce gross income to the amount that would be taxed. Would a flat tax system be preferable to the one we have? Explain why you answered as you did. C. Do you have any recommendations as to how our system of taxation in this country could be improved to make it equitable to all individuals regardless of their income, filing status or age? For many years the IRS has talked about switching to a flat tax, wherein taxpayers would pay a "flat" or set percentage of tax on their gross income. Congress has not been too quick to act on this. A very simplistic example of how this would work would be, if your gross income was $60,000 and the flat tax rate was 10%, then your taxes would be $6,000. Under this system, itemizing deductions would be done away with and a lot of the adjustments to lower income to taxable income that we have in place now would be eliminated; however there would still be some consideration as to an individual's filing status, age, number of dependents and possibly types of income. A. Do you think our present tax system should be reformed? Why or why not? B. What are your thoughts on a system using a flat tax rate without a lot of adjustments to income to reduce gross income to the amount that would be taxed. Would a flat tax system be preferable to the one we have? Explain why you answered as you did. C. Do you have any recommendations as to how our system of taxation in this country could be improved to make it equitable to all individuals regardless of their income, filing status or age?
Expert Answer:
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
Posted Date:
Students also viewed these accounting questions
-
For many years the reaction Hz (g) + I2 (g) →7 2 HI (g) and its reverse were assumed to be elementary bimolecular reactions. However, I.H. Sullivan (J. Chem. Phys. 46, 73 (1967)) suggested that...
-
For many years the financial and accounting community has recognized the importance of the use of audit committees and has endorsed their formation. By now the use of audit committees has become...
-
In 100 years, where do you think our primary energy will come from? Why?
-
The roller coaster in Figure P6.36 starts with a velocity of 15 m/s. One of the riders is a small girl of mass 30 kg. Find her apparent weight when the roller coaster is at locations B and C. At...
-
Identify reasonable values for M12 and M22 in the example on quantity discounts presented in section 6.15.2 of this chapter.
-
For the current year, Boardwalk Games has the following inventory transactions related to its traditional board games. Date Transactions Units Unit Cost Total Cost January 1 Beginning inventory 102 $...
-
Based on your experiences in college, draw and label a conceptual model that shows the factors that lead to your satisfaction (or dissatisfaction) with a course?
-
Caldwell Company has 20,000 shares of common stock outstanding during all of 2007. It also has two convertible securities outstanding at the end of 2007. These are: 1. Convertible preferred stock:...
-
PATA PLC acquired 7 5 % of the equity interest in POTEA PLC at 1 January 2 0 1 9 for KShs . 5 0 million. The Statement of Financial Position as at 3 1 March 2 0 2 0 were as follows: PATA PLC POTEA...
-
On January 1, 2021, Acme Co. is considering purchasing a 40 percent ownership interest in PHC Co., a privately held enterprise, for $700,000. PHC predicts its profit will be $185,000 in 2021,...
-
WILL DEFINITELY UPVOTE 23 A national homebuilder builds single-family homes and condominium-style townhouses. The homebuilder collects data on the selling price, lot cost, type of home, and region of...
-
Wesley Corp. stock is trading for $27/share. Wesley has 20 million shares outstanding and a market debt-equity ratio of 0.49. Wesleys debt is zero-coupon debt with a 5-year maturity and a yield to...
-
Consider an American put option on XAL stock with a strike price of \($49\) and one year to expiration. Assume XAL pays no dividends, XAL is currently trading for \($5\) per share, and the one-year...
-
Suppose Amazon stock is trading for $2000 per share, and Amazon pays no dividends. a. What is the maximum possible price of a call option on Amazon? b. What is the maximum possible price of a put...
-
In early 2018, Qualcomm Inc. had \($15\) billion in debt, total equity capitalization of \($88\) billion, and an equity beta of 1.33 (as reported on Yahoo! Finance). Included in Qualcomms assets was...
-
Now suppose Natsam Corporation has \($275\) million of excess cash. The firm has no debt and 500 million shares outstanding with a current market price of \($19\) per share. The board decided to do...
-
Shirley is reconciling her checking account. She has compared the end balance in her bank statement to the balance in her check register. The say $430.29. Is Shirley finished reconciling her account?
-
Portal Manufacturing has total fixed costs of $520,000. A unit of product sells for $15 and variable costs per unit are $11. a). Prepare a contribution margin income statement showing predicted net...
-
Lisa Sizemore, a taxpayer in the 10-15 percent tax bracket, purchased stock as an investment on July 11, 2011. She sold the stock on July 9, 2012, 2 days before qualifying for the long-term holding...
-
During the 2012 tax year, Irma incurred the following expenses: Union dues..............................................................$275 Tax return preparation...
-
Olive Corporation was formed and began operations on January 1, 2012. The corporation's income statement for the year and the balance sheet at year-end are presented below. The corporation made...
-
Quick Copies recorded a cash collection on account by debiting Cash and crediting Accounts Payable. What will the trial balance show for this error? a. Cash is overstated. b. Liabilities are...
-
Daniel Bronstein practices medicine under the business title Daniel Bronstein, M.D. During July, the medical practice completed the following transactions: The business uses the following accounts:...
-
In December, the first five transactions of Gillespie Consulting have been posted to the T-accounts. Prepare the journal entries that served as the sources for the five transactions. Include an...
Study smarter with the SolutionInn App