4 pages/≈1100 words
Accounting, Finance, SPSS
American corporate tax reforms (Research Paper Sample)
Assume you are a CPA and are hired by an elected official to recommend changes to the current tax code related to corporate taxes. Conduct researchj on the current congressional proposals related to federal corporate taxation. 1. Assess which proposal yoU believe to be the most viable and financially attractive proposal for US corporate taxpayers indicating how this proposal could be implemented. PROVIDE SUPPORT FOR YOUR RATIONALE 2. Explore the impact to corporations and the US economy if US companies could repatriate foreign profits earned without incurring a federal tax liability. PROVIDE SUPPORT FOR YOUR RATIONALE 3. Based on your research which corporate taxes would you propose to eliminate and why. 4. Determine the impact, positive or negative that your proposed eliminations would have on corporations and the economy. PROVIDE EVIDENCE TO SUPPORT YOUR POSITION. 5. Propose an alternative tax method for corporations and demonstrate how your proposed changes would be beneficial to corporate taxpayers compared to the currnet system for both corporations and the economy. PROVIDE SUPPORT FOR YOUR RATIONALE. source..
American corporate tax reforms Many policymakers and economists believe that the current economy requires radical amendments. However, there is sharp disagreement over why the corporate tax system needs a drastic overhaul and which specific policies should be amended or included in the reforms. Currently, the corporate tax ranges from 15% to 35%, depending on the earnings of a specified corporate entity. Generally, tax reforms are aimed at shrinking long term benefits, discouraging tax sheltering, and minimizing preferences and biases in tax codes. The most attractive proposed tax reform is the broader case, lower rates. The discussion on corporate tax places much emphasis on minimizing the top corporate tax rate and increasing the amount of income subjected to tax in order to offset the revenue loss. The rate can further be decreased if the revenue is not the main objective. It is proposed that reducing the current 35% rate of corporate tax would increase revenue. The joint committee on taxation has proposed that the rate could be reduced to 28% by relying only on removal of corporate tax expenditures. These Estimates are majorly revenue neutral that work through a 10 year budget window. A revenue corporate tax of 29.4 can be achieved if the budgetary estimate is adjusted to include the timing effects and deferrals. The top corporate tax could be further minimized if other changes are executed in addition to eliminating all corporate tax expenditures. For instance, deduction of interest that is not tax expenditure could be eliminated or restricted. Furthermore, additional revenues can be realized by using individual income tax to compensate the reduction of corporate rate. If there is reduction in the corporate tax and tax reforms in non corporate sector, a large volume of business activity will revert to the corporate sector, automatically broadening the tax base (Shaviro, 2004). Allowing foreign corporations to repatriate their profit without being subje...
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