Income Families Essay

Ranfy Leonardo Dr. Kersey Pols 2212 14 November 2014 Tax policy in New Jersey and Alabama Taxes have always been a contentious issue of debate in the United States; furthermore it is exacerbated by the specific philosophy of individuals, states, and regions. Too be clearer, nobody enjoys paying taxes, however it is the cost we pay for having civilization. Nevertheless, selfishness creeps in to many individuals who feel no particular benefit. Taxes have a real way of polarizing many

Introduction This report will analyse the pros and cons of various business structures in Australia, particularly company and trust. Jack and Jill are running a business, which produces income of $350,000 in 2015 and 2016. This report will highlight tax calculation under Company and Trust structure. At the end of the report there will be a recommendation of which is the most effective business structure to minimise tax payable and how to boost superannuation for better retirement. Company Div.

calculations and balance sheet for the 3 financial years ending 30 June 2015 - 2017 Family balance sheet Financial year ending June 2015 Assets $ $ Family house 620,000 Boat 20,000 Car Jenny 35,000 Car Jerry 12,000 House contents 50,000 Commonwealth Bank shares 53,000 Term deposit with Bundoora 165,000 Savings account with Bundoora 26,000 Superannuation funds (combined) 330,000 Total 1,290,000 Liabilities Family home mortgagee 250,000 Personal car loan 16,000 Credit card debt 6,000 Total

be less complicated. Flat tax would not punish people for having higher income; instead flat tax would create equality to all tax payers. The taxpayers would not be complaining to the neighbors or their close relatives about their tax rates and how different they are from each other. Despite the fact that federal employees would be out of jobs, the United States should have flat tax implemented because flat tax spans all income brackets of taxpayers and would have low rates with no deductions or exemptions

enforcement of taxes. Typically, members of the Democratic Party support a progressive tax, which taxes higher earners at a higher rate. Republicans, however, tend to agree with a flat tax. This policy taxes everyone at the same rate, regardless of income. Although these two ideologies are the most common, there is still a place for a third or fourth opinion from other political parties. The Democratic and Republican views on taxes don’t include every possibility for the United States. Democrats

the housing bubble burst in 2006, and when the Great Recession occurred in 2009; however, to recover from the losses, most of costs increased again and reached their peaks in 2011, and 2012. While all costs rose with two, or even three digits rates, income increased only 37 percent (Desilver, “For Most Workers, Real Wages Have Barely Budged For Decades”), therefore, many people fell behind the living standard. Furthermore, with the powerful influence of media, American become more and more materialistic

that helps pay your monthly health insurance bill. Form 8962 - Jeff’s $18,000 Income QUESTIONS AND ANSWERS Why Is

1 percent of total income, while the poorest fifth received about 3.2 percent” (McConnell). There are many sources of income inequality that effect poverty in the United States and the role that discrimination plays in reducing and increasing wages for different people and how the people of the United States are affected by it. The average household income in the United States is, in fact, one of the highest in the world. Unfortunately, does not provide information about income inequality. There are

due from the estate during lifetime or tax liability beneficiaries will have to pay in case one is incapacitated. Strategies such as transfer of property as a gift, setting up a trust and establishing a family limited partnership exist to reduce tax liability and maintain assets within the family circle (Stephen, 1991). Consequences of potential transactions Transfer of partial ownership of the asset to both children is a form of a gift. The strategy is beneficial as it first reduces the size of

The top 1 percent of the wealthiest people in the U.S. pay a total of over 40 percent of all federal income taxes, which is more than the entire bottom 95 percent of all tax payers. Government programs are funded through Social Insurance Taxes that are the fastest growing source of federal income though it’s actually counted separately in special trust funds by the Treasury. Both federal and state governments combine these taxes that are used to