Capitol Tax : Capitol Income Essay

Sole Proprietorship. Sole owner of a business. The manager and the owner is the same person. The sole proprietorship has unlimited liability. You pay taxes as owner and

Sole trader is where a business is run as an individual; so that all profits are their own after tax has been paid on them. Within a sole trader organisation it is possible to employ staff, as the sole trader only means that you own the business personally and do not actually have to work by yourself.

In the United States, the top one percent received about 20 percent of the overall income for 2016. This creates an uneven distribution of income causing Americans to argue about whether or not the wealthy should pay more in federal income taxes. One side of the argument is that the wealthy make a huge portion of the nation’s income; therefore, they should have higher tax rates. The other side argues that wealthy Americans already pay their fair share of taxes by paying nearly 40 percent and should not be forced to pay more. These arguments both use compelling evidence to make their claims; however, a solution could be reached by increasing the tax rate of the top one percent by only 10 to 20 percent.

The federal and state governments provide the American citizens with all of the basic necessities within our communities and society that is taken for granted. Programs responsible for assistance in times of need, providing a quality standard of living, and maintaining the strongest military in the world costs incomprehensible amounts of money and could never exist without taxes from the American people. Taxes are payments made by individuals and businesses to support the government and its services. The constitution grants that congress “shall have the power to lay and collect taxes, duties, imposts, and excises and to pay the debts and provide for the common defense and general welfare of the people”. Taxes paid by Americans redistribute

The pool cost the petitioner over $19,000, and we cannot accept his contention that such amount was spent primarily for therapy for his leg in view of the limited need for such therapy and the alternatives which were then available.

Parent Corporation owns 85% of the common stock and 100% of the preferred stock of Subsidiary Corporation. The common stock and preferred stock have adjusted bases of $500,000 and $200,000, respectively, to Parent. Subsidiary adopts a plan of liquidation on July 3 of the current year, when its assets have a $1 million FMV. Liabilities on that date amount to $850,000. On November 9, Subsidiary pays off its creditors and distributes $150,000 to Parent with respect to its preferred stock. No cash remain to be aid to Parent with respect to the remaining $50,000 of its liquidation preference for the preferred stock, or with respect to any common stock. In each of Subsidiary’s tax years, less than %10 of its gross

sole trader- is a type of business entity that is owned and run by one individual and in which there is no legal distinction between the owner and

According to the assignment, my family of four must live at the federal poverty level of $24,300 per year, which equates to $2,025 per month; however, that is gross pay. After taxes, my family’s disposable income is $1,863, which I calculated using federal and state tax tables in Quickbooks accounting software. After tithing 10% ($203) and saving 10%, my remaining disposable income is $1,457 per month. A breakdown of the use of this monthly amount follows:

The rich get richer and the poor get poorer. Such a phrase has become accepted as a part of American life. A country that was built on opportunities has become complacent of the equalities that are being taken away from them and are being given to the elites. Currently there are 7 income tax brackets for heads of households ranging from 12% of $9,525 to 37% of $500,000. However, in 1978 there were 34 brackets for heads of household income tax ranging from 14% of $8,492(2,200)to 70% of $703,351.32 (182,200),adjusted for inflation. What can be observed is that there has been a decrease in the highest tax margin, once $700,000 now $500,00. as well as a 37% decrease in the highest tax, was 70% now 33%. This means that the wealthy have had their income taxes almost halved where as the lower class

* 26 U.S. Code § 3510 - Coordination of collection of domestic service employment taxes with collection of income taxes

Hypothetically, someone goes to church on Sunday and is asked by his/her pastor to donate 10% of that person's annual income to help feed the hungry and agrees to do so. Then later finds out that 3% percent of the church’s income goes to actually helping the poor and the rest is being used to expand the church and its resources. He or she then realizes a portion of the income that was donated is not going to the cause she wants to support. So where is her offerings actually going towards? Religious organizations across the U.S. are receiving tax exemptions due to the 1st amendment stating the separation of church and state, and the way this impacts our economy is a violation of what actually are 1st amendment states due to the research showing where this money is actually being distributed. For example, to quote an article on procon.org, one of the cons says that it is unconstitutional when giving such organizations tax breaks that it is supporting religion by our government. To quote, “ Associate Justice of the US Supreme court, William O. Douglas, in his dissenting opinion in Walz v. Tax Commission of the City of New York, decided May 4, 1970, stated: "If believers are entitled to public financial support, so are nonbelievers. A believer and nonbeliever under the present law are treated differently because of the

Sole trader-it’s a business that is owned by only one person and it can have one or more employees. This type of business organization often succeeds because the owner has total control of businees, the owner keeps all profit and it’s cheap to start-up,but also it can be difficult to raise financial,it may be difficult to specialise or enjoy economies of scale and can also have problems with continuity if sole trader retires or dies.

Taxation systems are usually modeled in such a way that they take into consideration the social welfare of the citizens. The government and other policy makers have the responsibility of ensuring that the system takes into account the needs of the citizens. The bottom line is that taxation should foster equal distribution of resources. The rate of taxation is usually arrived at after several considerations have been made. The rates are not fixed as they depend on the various economic changes. The issue of how taxation should be distributed among the different economic classes is yet to be addressed.

A sole proprietorship is the most common form of forming a business in the United States. The individual that forms the sole proprietorship and the business is one in the same. For example, if the business owes creditors money, the individual who created the sole proprietorship business has to pay the bill. When entering into contracts the individual is actually agreeing to the contract since the person and business is one in the same.

Sole traders have unlimited liabilities,meaning that in terms of law there is no separation between them,hence the sole trader is also liable for the debts incurred within the business, which makes it very risky to run for a long-term.