The Congress passed the Sixteenth Amendment to impose a Federal income tax. Income tax gives the opportunity for the federal government to build bridges and roads, army, and also enforce laws and carry out other essential duties. The reason for the Sixteenth Amendment because after the Civil War, the industrial and financial markets increased of the eastern United States. Although the farmers of the west and south suffered from low prices for their farm products, due to the fact they were obligated to pay expensive prices for manufactured goods. “The Amendment provides that taxes on incomes should be apportioned among the states on the basis of population, as would be required for direct taxes. An apportioned income tax would be an absurdity,…
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 worked per week or month or business pursuing more in R&D. This will lead to a shift of the AD curve from AD1 to AD2…
2018 High School Co-op Assignment RRSP 1) A RRSP is a Registered Retirement Savings Plan, this is meant to shelter investments, allowing them to grow tax free until you retire. An RRSP doesn’t only hold cash. It can also hold stocks and mutual funds. The only tax you pay on an RRSP would be when you make a withdrawal. One of the benefits of an RRSP is to reduce your taxable income. For example, if you make $90,000 in a year and don’t contribute any money into a RRSP, you will be taxed on…
This assignment will explore how bedroom tax has affected thousands of people in Great Britain since it was first introduced in 2013 by coroallation Government. Furthermore, it will highlight the views across the populations and how some people are managing their daily life. The current British government has introduced bedroom tax policy 2013 to cut down government spending. The policy applies to those who are in receipt of housing benefit and among those are tenants of social housing and…
accounting for income tax 3.4.1 Disclosure of income tax part in notes to financial statement for each company AASB 112 para 5 describes the tax base of assets and liabilities is the amount attributed to that asset and liability for tax purpose. According to this standard, we will compare the way of each company applies it and how the companies present it in their notes to financial statements. 1. Cardno Limited presents the detail calculation of income tax by dividing the income tax expense…
Since GST (Good and Services Tax) has been available by government to implement it to the public, the reformation of GST seems to initiate a couple of issues. Those issues may include a political, or even economic aspect and many other issues. Yet today, there is a lot of argument, critics and fact about GST reform and its implications found in the Australian media. This essay will review some of the findings from the articles that are related to the GST reform and why GST holds a really…
The main cause for racial and income inequality throughout the country is due to the racial superiority some states have set, due to the migration to suburban areas and the gentrification of urban cities. Minorities usually migrate to urban cities where jobs are more available, affordable housing can be found, and the availability of food is accessible (prices of food). In the article “Food Justice and Agriculture,” it mentions, “Accessibility is also envisaged from an economic point of view,…
They’ve discovered that “income inequality has risen in the U.S. as shown in their data” (Atkinson, Piketty, and Sasz, 2011). Duca and saving also found suggestive evidence that, once the level of inequality goes up, the more complicated statistical relationship between inequality and polarization emerges. The study used two measurements of income inequality, which are the shares of the top 1 percent of families and the inverted Pareto-Lorenz coefficient to get a measurement of income…
this problem is a major factor of who gets voted into office. The reason that the rich can be taxed without the rest of the country being taxed is, America’s income tax system is set up by using a graduated tax bracket. This means that the more money a person makes, the higher the percentage of money they have to pay. The rich should not be taxed more because they already pay the highest percentage of their money to taxes, the government does not spend money wisely, and the rich…
Under the Income Tax Assessment Act 1997, a taxpayer's total capital gain consists of both net capital gain subtracted from their net capital losses for the financial year (July 1st to June 30th). Variations on income tax liability depend on whether the taxpayer has made either a capital gain or a capital loss.1 Capital gains occur whenever costs are less than the gains on a capital asset. Conversely, capital losses arise whenever costs exceed a gain. 2 The most common event for taxpayers…