Assignment 1: Should the U.S. Convert to a Zero Personal Income Tax? 3.6 trillion per year to fund Social Security, Medicare, homeland defense and safety, education, transportation, and the interest on debt obligations. In spite of the services and benefits that the government provides, many taxpayers dread paying income taxes but consider them a necessary evil. Consequently, there is much debate about the inequities contained within the tax code, due to tax shelters and tax credits provided to some taxpayers which thereby increase the tax burden on others. Using the Internet or Strayer Library, research one (1) country that has a zero income tax rate. Analyze the way in which the one (1) country that you have researched provides services and benefits to its citizens without collecting personal income taxes. For the country that you have chosen, determine whether or not the U.S. Suggest at least two (2) advantages and two (2) disadvantages of the U.S. Provide a rationale for your response. Create a proposal for where the revenue would be derived if the U.S.
The proposed tax base. Whether or not tax payers at certain income levels should be exempt from taxation. The primary way in which the IRS would calculate the tax rate in order to ensure that the same level of tax revenue would still be collected. The primary way in which your plan will achieve equity. Speculate on the primary way in which the federal government could make up any shortfalls if it does not collect its targeted revenue from personal income taxes, and ascertain the most significant way in which the U.S. Department of the Treasury, through the IRS, can still adhere to its fiscal and monetary policies. Use at least three (3) quality academic resources in this assignment.Note: Wikipedia and other Websites do not quality as academic resources. Be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides; citations and references must follow APA or school-specific format.
Check with your professor for any additional instructions. Include a cover page containing the title of the assignment, the student’s name, the professor’s name, the course title, and the date. The cover page and the reference page are not included in the required assignment page length. Examine the types of taxes imposed at the federal, state, and local levels; the federal tax formula; and the rules for arriving at personal and dependency exemptions. Use technology and information resources to research issues in federal taxation. Write clearly and concisely about federal taxation using proper writing mechanics. Jane’s Air Conditioning Service decided that this year was the year to “take over” the air conditioning business in her town. Beginning in January, she started advertising her business (even though there was snow on the ground), bought a supply of Freon, updated her vehicles and bought new uniforms for her service technicians who were making house calls.
Jane comes to you to determine how to optimize her deductions in order to reduce her tax liability. What advice would you give her as to the expenditures above (assuming they all took place in the same year)? Be sure to also explain what may (or may not) be capitalized and/or deducted. As part of his contract at his new job, Jim is provided a company car and gas card to go back and forth to work. He sometimes uses the car for out-of-town travel approximately once a month. Explain the applicable tax law regarding employee compensation and the criteria for deducting expenses Make at least two recommendations for ways that Jim can ensure that he is compliant with the tax law. A business owner comes into your office and asks for guidance as to the best way to maximize tax deductions for the company and the employees. Explain the tax deferral concepts and the impact on the business, the employee, and potential tax consequences on both. Please be specific with your recommendations.