Tom: The first issue when it comes to personal income taxes will be the major disparity between effective tax rates for the rich and poor in the country. Data and reports from the Internal Revenue Service (IRS) shows that the effective tax rate of wealthy American’s have come…
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The rich taxpayers are seem to be reporting almost 48.5% of their total income as capital gains and dividends, effectively getting 48.5% of their income taxed at extremely lower rate of 15% compared to that of the low income people. The trend now is that such wealthy taxpayers with more than $10 million continue to report huge increase in their income and get taxed at extremely lower rates. Legendry investor Warren Buffet has complained that he pays much lower tax rates than his secretary.
John: I should agree with Mike on this point. Studies have shown that one of the major reasons for income inequality in US is such special tax rates on investment income. While the percentage of capital income is as high as 50% for some of the wealthy, it is as low as 2% for people below the income level of $200,000. In fact, Mitt Romney is reported to have close to $14 million income and the effective tax rate is seemed to be as low as 13.5%. All these instances point to the fact that current tax system just keeps accelerating the income disparity in US. A fix to this is indispensable in order to check this inequality from spreading. One option that the government can consider is to increase the tax rates on investment income.
I: Taking it on from John, I should say that is already high time that the government should find a fix for this issue. Effectively, only a higher tax rate can curb the huge tax rate disparity in US. Regarding John’s note on increasing the tax rates on investment income, I should say that it will again adversely affect the small taxpayers who have considerably small percentage of investment income. Increase in the tax rate on such income would effectively leave the small taxpayers with fewer after tax profits. Therefore, a more ideal choice would be to determine the tax break loopholes that allow the rich to lower their income tax percentage and close such
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(“Personal Income Taxes Essay Example | Topics and Well Written Essays - 500 words”, n.d.)
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(Personal Income Taxes Essay Example | Topics and Well Written Essays - 500 Words)
“Personal Income Taxes Essay Example | Topics and Well Written Essays - 500 Words”, n.d. https://studentshare.org/macro-microeconomics/1610607-personal-income-taxes.
Everyone knows that a portion of the money they have earned will be going to the government to pay its bills, and most people will concede that taxes are a necessary evil if there is to be infrastructure, order, and public assistance among many other services which taxes fund.
In fact, if a person wins a jackpot for twelve hundred dollars or more, the casino takes down the personal information and passes that information with the amount won on to the IRS (Smulik, Roche, & Roche, 2011).
Such a statement must be filed before the statutory period expires. (irs.gov, 2011) Interest by definition is that amount payable for use of another person’s money, after borrowing it. In order to reduce the debt with the interest amount paid upon ones tax return one must be legitimately liable for that debt and as such has to be in a position to itemize one’s deductions for tax on the return.
It has been suggested over time that personal income and wealth levels have become skewed to favour those at the top. Consequently, wealth levels have increased in significant amounts for people who were already at the top tiers of personal income and wealth.
However, America has a local and state tax system that is very polar to these beliefs with the wealthy paying almost half the taxes that the less well off. In its comprehensive report, in 2009, the Institute of Taxation and Economic policy did an analysis of all states in the U.S., in addition to other major localities, and discovered that local and state tax systems are very regressive (Davis et al 2).
Australian Taxation system. Research done in several Australian newspapers has testified that taxation is the backbone of the Australian economy. The country’s system of government is divided into the federal government which controls all taxations that take place in the country.
However, the targeting of specific commodities for different taxation treatment violates the neutrality principal of taxation by targeting certain products, and since cigarettes, like lottery tickets which are also heavily taxed, are disproportionately purchased by lower- and middle-income consumers (Talking taxes: Policy brief #9, 2005), these taxes are considered regressive.
However empirical evidence remains inconclusive.
In financial theory, disagreement exists with respect to the effect of capital structure on firm value. The traditional view of corporate capital structure and valuation holds that there is an optimal capital structure and thus the total value of the firm can be increased through a judicious financing mix.
There are a number of valid arguments for companies that might wish to remove income allocation entirely at the time income has been earned. Most of the firms believe it is costly, complex with the conceptual framework. For this reason, companies that practice effective and efficient methods of decreasing income taxes.
cing for capital is the raising of money through selling of bills, notes and bonds to investors as well as borrowing money from a financial institution to use for capital expenditure. In return, the institutions become creditors and the corporation has to promise in writing to
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