Earned Income Tax Credit

Texas is one of the seven states in the United States that do not tax income. Many will see this as an advantage on keeping more money in their pockets, but just like everything, it has its disadvantages. The political system of a given state is what creates their political culture. According to professor Kim, the concept of political culture refers to a shared system of values, beliefs, and habits of behavior with regard to government and politics. Political culture shapes society different in…

demand and increases the price. It also affects the supply of labor, low wages, high prices, lost jobs. Overall, Tax causes major effects on economy. This paper will use the happenings discussed in Mankiw’s reading on Tax, The Brooking’s article, Effects Of Income Tax Changes On Economic Growth, Midimagic, article Top Ten Effects Of High Taxes, Reference.com’s Why Do People Have To Pay Tax, Miller 's chapter 17 and chapter 4 questions to discuss the effects of taxes on economy and what the…

The issue with income inequality is not one that is only a state issue, or a country issue, but of an issue that is a global problem in today’s society. It is embedded within our culture and also within the so-called “American Dream” like nothing else in comparison. Our world is ruled by Capitalism, the world’s top heavy weights are of capitalistic ideology and have structured their economies to run in said fashion. It is near impossible to eliminate income inequality in a realistic environment,…

The use of tax havens as a business motive to reduce tax liability has long been a tradition for many MNCs (Fisher 2014, p338). Recently, Apple Inc. has received worldwide attention for its tax avoidance behaviour. For instance, the Australian Taxation Office (ATO) has made an inquiry regarding Apple’s 85 million dollars income tax payment in 2015, even though the company made nearly 8 billion dollars in local revenue (Khadem 2016a). This implies that the company had avoided paying its fair…

Minsky Money Program demonstrated the concept of how money can be created by a state and through a tax obligation imposed by said state gives money its value. In the case of the Minsky Money Program, Minsky money was our imposed tax obligation that we needed to repay as our tax obligation. Minsky money’s value was attained by the fact that a grade for the class would be based on the repayment of the tax obligation. In addition, there would be no other form of money that would be accepted for the…

There are three types of tax cuts, lowering personal income tax, lowering taxes on capital gain, and lowering business taxes. Cuts in personal income taxes and business taxes will lead to a higher- after tax income and higher-after tax profits, therefore creating the incentive for workers to work more, and businesses to invest more. For example, an increase in the number of hours…

and the poor has lead to a need for a progressive tax. A progressive tax, which is currently being used in the U.S., has been seen by many as the fairest way to tax people. Although every American is guaranteed equal rights, not every American is the same therefore they should not all be taxed the same way. There are seven income tax brackets in the U.S. today. The progressive tax is based on income, so the more money a person makes the higher tax bracket they will be in and the higher their…

The Australian Accounting Standard Board Drafted Accounting Standard AASB-112, Income taxes under section 334 of The Corporations Act 2001 on 15 July 2004. The main principle of tax effect accounting as per AASB-112 are as follows:- • Computation of any future recovery of the carrying amount of assets which an entity recognizes in its financial statements • Transactions and other important events of the current period that are present in the financial statements. The recognition of asset or…

The idea of a Universal Basic Income, however, had started long before, originating during the Renaissance Era, 1516, in Thomas More’s “Utopia” [7]. Throughout the centuries many famous intellectuals like Thomas Paine and John Stuart Mill examined and expanded upon the idea. Modern day, we see the idea of a Universal Basic Income being endorsed by men like Elon Musk, the CEO of Tesla and Space-X. The purpose of the Basic Income was to tackle poverty. Modern day, it is now becoming…

Income-tax notices and how to avoid them It is not uncommon to be served with income tax notices because many people may not be aware of what they are supposed to do. Most tax notices alert the recipients about the issue that needs to be addressed or corrected immediately. Whatever reason is behind your notice, never ignore the notice because the tax department can impose fines of up to Rs 10,000 if the concerned party fails to reply to the notice in assessee. The number of people being served…