Johnson Control Taxes

The current tax policy in the United States is very confusing and it is very costly for our government to administer it. It is in the best interest of our country and its citizens to revise or replace our current tax policy.

period to complete each in-class quiz. Each quiz will be graded based on 50 points.

Both coauthors explain “the myth of corporate taxes” with two statements: “When it comes down to it, no corporation or business really pays taxes,” and therefore, “the burden of it all falls on us [the taxpayers]” (32). They continue their explanation with another claim: “The economic education of Americans is so woefully inadequate that many of us actually think we pay less as individuals when the taxes are transferred to businesses and corporations” (31). To illustrate their point, the authors created a fictional corporation with simple guidelines. Although not their actual example, the following is similar: Qwerty Inc., a manufacturer of computer keyboards, has 200 employees and 100 shareholders. At the end of the year, Qwerty Inc. sold 1000 keyboards at $100 dollars each; therefore, the yearly income was $100,000. After labor, cost, taxes, and other charges, Qwerty’s profit is $2000 for the year. If the government adds a 10% corporate tax increase, Qwerty now owes an additional $200 in taxes. According to Boortz and Linder’s logic, Qwerty has several possibilities to balance the budget from the tax increase: the shareholders could see their dividends decrease, the price on the keyboards could be raised, some employees could be fired to save on cost, or employee benefits could decrease to cover the cost of the tax increase. This simple example demonstrates the current tax code’s consequences on the taxpayers (citizens and consumers) and introduces “the embedded

The American government has struggled with the issue of taxes and the budget for over a hundred years. Class conflict, adversarial political parties, and convoluted economic philosophies have resulted in a never-ending debate over taxation. The New York Times newspaper article, “Senate Panel Vote Backs Budget Plan”, from June 1993, discusses the current feelings of the time in regards to the budget and taxation. Moreover, the article mentions factors such as democrat-republican debate, trickle down economics, and high verse low taxes for the middle class. The issues discussed in this 1993 article differ only slightly from the taxation conversation of today. However, now in 2011, we face a budget crisis that threatens the American economy

Stanton Delaplane once joked about the IRS, saying he heard it had suggested a simplified tax form with only one question: How much money did you make last year? The IRS response was, "Mail it in"." Thank goodness, our taxes haven 't gotten quite that bad. It is true though, that the majority of Americans, most of us included, have to bite the

In the article “Job One: Tax Code Rewrite,” William O’Keefe, an author who cares about tax reform, argues that the Obama Administration should rewrite the tax code in order to reduce the unemployment rate. He supports this claim with a formal tone by using opinions and anecdotes as evidence. According to William, we need “systematic reforms to our tax code and regulatory policy.” The author targets a tax reform audience that cares about the economy. William’s purpose is to persuade readers that Obama’s stimulus tax bill will not help the economy or business in the long run. This work is significant because it challenges the Obama Administration to rethink their priorities.

The less taxes we pay, the more lives we save. The United States has the highest corporate tax rate of the 34 developed, free market nations that make up the Organization for Economic Cooperation and Development (DECD). Unlike other countries, the United States pays a marginal corporate tax rate of 35% at the federal level and 39.2% state taxes are accounted. This is causing thousands of corporations to move operations out of the United States and into other countries. Therefore, the United States should lower the taxes of big corporations.

Throughout years large American industrial companies have been running away from U.S. taxes, but there has been a new change. Companies such as Apple and Google have been affected by a change foreign countries are going through collecting higher taxes than before. It seems as if no longer can these companies get away with paying low taxes. This is happening because the European Commission have passed an order to collect high taxes. One example is Ireland who was ordered to collect fourteen billion dollars from Apple, which brought a surprise to this company. Companies have run out of places to run and pay one percent or less of taxes in foreign places, instead of paying back home.

Our current income tax system today is very complex, unfair, inhibits saving, investment and job creation, imposes a heavy burden on families, and weakens the integrity of the democratic process. It can't be fixed and must be replaced. The U.S. income tax code is a long and complex system. The income tax system is so complex; the IRS publishes 480 tax forms and 280 forms to explain the 480 forms. The IRS sends out eight billion pages of forms and instructions each year. The administrative costs of the tax system far exceed those borne directly by the IRS. Each year Americans devote 5.4 billion hours complying with the tax code, which is more time than it takes to build every car, truck, and van produced in the U.S.

More than 25 years ago, there was a major overhaul of the U.S. corporate tax system. The Tax Reform Act of 1986 reduced a corporate tax rate from 46 percent to 34 (Gross & Schadewald, 2012, p. 40). The federal budget deficit forced the government to lower the corporate tax rate. The level of corporate tax rate in the USA was lower than it was in Canada, Germany, and France. The tax rate for corporations remained unchanged until 2011. In 2011, fiscal barriers led to changes of the tax reform. Today, the reform package includes the exclusion of deductions and credits, and tax rate reduction. However, the net effect of those components may boost the tax liability of domestic companies.

While the concepts, statistics, and conclusions Noah raises are vitally important to the overall message of the book, it could never achieve critical acclaim without its accessibility to the everyday reader. While many of the concepts seem above readers’ heads, Noah’s direct, clear, and concise writing style ensures that he will not alienate an audience uninformed about the nuances of the US tax code.

This year around the April 15th deadline, tax-paying Americans should have realized that they were paying more in taxes than they should have. More and more people are evading the International Revenue Service, employers and workers alike. Americans are reverting to the underground economy, where tax-evaders, illegal workers, prostitution, and drug rings are abundant. This type of hidden income made by these activities go unreported in the national income, and has become accepted as the status-quo all over the world. The Underground economy is difficult to control, but can be managed with well thought out tax plans, and more severe punishment.

The United States tax system is in complete disarray. Republicans and Democrats agree that the current tax code is complex, unfair, and costly. The income tax system is so complex; the IRS publishes 480 tax forms and 280 forms to explain the 480 forms (Armey 1). The main reason the tax system is so complex is because of the special preferences such as deductions and tax credits. Complexity in the current tax system forces Americans to spend 5.4 billion hours complying with the tax code, which is more time than it takes to manufacture every car, truck and van produced in the United States (Armey 1). Time is not the only thing that is lost with the current tax system; Americans also lose

The recent passage of tax reform by the US Senate raises the spectre of the statutory corporate tax rate falling to 20% from 35%. Republicans justify the measure by claiming that the statutory rate is too high and, furthermore, they assert that lowering its level will induce US corporations to feel less inclined to use overseas tax shelters. The reality is, however, that corporations seldom pay the statutory rate. Since the beginning of the post-Great Recession recovery, the effective rate being paid by US companies has been significantly lower than the statutory rate. According to the National Income & Product Accounts (NIPA), the effective tax rate paid by US corporations during Q3 was just 21%

I believe that there should be corporate income tax, as it acts as a “user fee” for the “special privileges” (Rosen, Ch 19) corporations receive. The corporate income tax is a separate tax on corporate income, in which varies in a bracket between ten percent and thirty five percent. The effective corporate income tax rate is estimated at thirty two percent, and eighteen percent for non-corporations. Workers compensation, labor expenses, interest payments, and depreciation are tax deductible from taxable income. Since corporations sell stock to stockholders, those stockholders purchased a certain percentage of the corporation. In turn, purchasing a portion of the corporate liability. If a stockholder accumulates income within the corporation in which he holds stock shares, he reduces his tax liability. Although the shareholder’s additional income would eventually be taxed, his stock will grow at the before-tax rate of interest. This benefits the corporation and the shareholders, as neither party holds the entire liability, nor do the shareholders pay debt if the corporation is not generating profit. Corporate income tax also preserves the integrity of personal income tax. I believe that there should be corporate income tax, as the lack-there-of could create “potential opportunities for personal tax avoidance” (Rosen, Ch 19).