...are four legal forms of business to choose from: sole proprietorship, partnership, corporation, and cooperative. In sole proprietorship, the business owner is directly responsible for all debts and obligations related to their business. In turn, all profits generated by the business are for their keeping. Some of the advantages of choosing a sole proprietorship form of business are: simplicity and inexpensiveness, direct control of decision-making, and a limited regulatory burden. Disadvantages of sole proprietorship include an unlimited liability for the owner, which can result in creditors going after personal assets if the owner’s business lacks the financial resources to cover their debt obligations. In sole proprietorship, it can also be difficult to raise capital on your own, and depending on how successful your business is, your income will be taxable at a personal rate. Similar to sole proprietorship...
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...Should the USA convert to a zero personal income tax? Abstract: This paper will discuss 2 countries that have implemented zero federal income tax and what would happen if the US chose to adopt a similar tax base. Every year most people in the United States of America gear up to file their yearly personal income taxes. The government relies on this money to operate. About forty five percent of the government income of the United States comes from personal income tax. A lot of Americans wish that they did not have to pay personal income taxes and that the US would adopt a zero income tax policy. There are many countries that currently have a zero tax model and it works. This paper will discuss the systems of Qatar and the Cayman Islands and determine if the US could benefit from similar models. In Qatar the government relies on its income from the natural gas reserves. It is one of the richest countries in the world. Qatar’s gas reserves are the third largest in the world. It requires businesses that are in the oil and gas industries to pay a thirty five percent tax rate. Residents of Qatar pay five percent of their income to social security and their employers pay 10 percent. Because the U.S. does not have the natural gas reserves like Qatar, it cannot rely on such reserves to provide income for the government. The Cayman Islands are another country with a zero personal income tax. They also do not require residents to pay into social security. Because...
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...the 1990s: assuring upward mobility for working Americans in the new world economy; resolving the great American dilemma of race; restoring a civil society and strengthening the social ties that foster a sense of community; finding America’s proper role in the post-Cold War world; and rethinking the size, shape, and mission of government in an Information Age. The Foundation explores public controversies over cultural questions—race, ethnicity, gender, religion, morality, and civic education—that are often ignored in conventional political discourse. The Foundation’s Project on Tax Reform and Economic Growth works to develop a tax reform program that is consistent with a progressive distribution of the tax burden, and can help promote stronger job and business formation, greater productivity, and higher family incomes. This report is the first of two new reports outlining the essential features of such a tax reform program. The preface contains more information about the four previous reports produced by this project. To order previous reports or additional copies of this report, please call the Foundation at (202) 546-4482. They are also available on the World Wide Web at http:/ /www.dlcppi.org/economic.htm. The Foundation is a nonpartisan research and educational foundation associated with the Democratic Leadership Council and the...
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...has become vital that immigration laws are carefully managed to ensure they yield the biggest benefits to the host nation. As more immigrants seek immigration in the USA, UK and other developed nations, many of the nations are restricting and limiting the legal registration of immigrants (Ezell, et al., 2013). But it’s important to consider the facts behind the tightening of immigration laws since they have caused more damage than benefit to many of the affected economies. Negative Effects on the Native Born Workforce While the lack of immigration declares that immigrants cannot work in a nation, many continue to seek unofficial employment at considerably reduced wages. Many businesses and employers in the developed nations are also more than willing to hire the illegal immigrants secretly as this helps them save money and be more competitive in the market. In the government’s eye, the illegal immigrants cannot secure legal employment officially but it has been observed many are working unofficially on casual, freelance and remote basis (OECD, 2012). This is greatly affecting...
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...FOREIGN EMPLOYMENT: A PERSONAL PERSPECTIVE John Smith Grantham University BA405 Multinational Management December 12, 2014 FOREIGN EMPLOYMENT: A PERSONAL PERSPECTIVE I have often thought of working and living in a foreign country. As a soldier, I was able to achieve that while stationed in Germany and South Korea. As a soldier though, one does not get the full effect of living within a society that has norms, customs and traditions different from those we find in the United States. To work and live in a foreign country as a private citizen would be a terrific experience. Much thought has been given over the years as to where. Perhaps Belize, where it is always warm, costs are comparatively inexpensive and a place that has a motto for tourist that says “go slow”. There’s probably not going to be much going there though where one can pull down a livable wage with benefits. Africa has also sounded good from time to time. I once met a soldier from Ghana. He informed me one day he was going home for vacation and as the conversation progressed, I learned that on an income of less than $1500 one could live like a king with an estate, a driver and servants. However, Western Africa may be a bit hostile for my taste. As the list narrows, I am left with Mexico, Germany and England. I have never been to England. To begin with, I would never give up my citizenship as an American. I enjoy the American exceptionalism and the...
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...contract ) - Working for a Asian Company as Western employee - Major problems working with Chinese staff & - Managing Chinese staff INFORM YOU WHEN HEADING ASIA: BUSINESS WISE What is my product ? How is the market ? Competition ? Expectations ? How big is my Chance ? INFORM YOU WHEN HEADING ASIA : PERSONAL WISE My salary ? Exchange rates ? Expenses ? Social security ? Tax ? Retirement ? Social life ? Family life ASIA BUSINESS WISE BUSINESS TYPE 1 Starting your own company in Asia 2 MAJOR TYPES 1) RO (registered office ) 2) WHOFE (whole owned foreign company) COMPANY TYPES: RO Easy to setup Setup time a few weeks Cheap to setup ( less as 500 euro and no starting capital needed) Can not hire staff Tax rate 11,67% on all activities No Legal power Can not be used to protect IP or whatever company rights COMPANY TYPES: RO Due to the high tax level not used for big activities. Depending the type of business useful for starting business ( no start up deposit ) COMPANY TYPES: WOFE Difficult to setup Setup time 3 months minimum Has all rights as Chinese owned company Only pay tax on real made revenues !!!!!!!!!!!!!!!!!!!!!!!!!!!!!! Money deposit up to 60.000 euro ( starting capital ) COMPANY TYPES: WOFE Due to money deposit not given to every beginner to start up a WOFE Remind,...
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...1. From the definition of GDP we arrive at the following expression: c + i + g + x-m = y = c + s + t Discuss the three important economic relationships that can be derived from this expression related to the definition of GDP and explain each carefully. The expression above depicts two different ways to come up with real GDP for a country. The left side of the expression explains expenditure side of computing real GDP which can be rewritten as: y = c + i + g +x – m In real terms, it could be said that real output (y) is equal to real aggregate expenditure (c + i + g + x – m). The right side of the equation depicts how to determine real GDP by the total income all people within a certain economy. This equation is written as: y = c + s + t If we combine both equations, we can rewrite the formula for savings (s) in the following two ways: s = i + (g – t) + (x – m) This shows that savings must be matched by the uses of savings, investments, government deficit, and net exports. It also points out the “crowd out” effect where by increased government spending will decrease private investment due to the fact that the amount of savings is fixed. The graph below shows how the aggregate demand curve changes with increase in government spending in the short term and the long term. s – (g – t) = i + (x – m) This equation, derived from calculating GDP, shows how domestic savings, s – (g – t), is balanced by the demand for saving, i + (x – m). It...
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...First Time Home Owners Tax Credit Laura R. Kohler National American University Everyone dreams of owning their own home at some point in their life. This idea is set into our heads as children. We grow up, get a job, get married, buy a house and start a family. It’s the American dream. What if there was more incentive to buying your first house? Good news, there is. The first time home owners’ tax credit was designed especially for you. That is if you so happened to purchase your home between April 2008 and April 2010. In 2000, the United States economy began to fall. With this fall came the housing market crash. Some say that the housing market has yet to recover. It’s made a big step though. With the big fall in the housing market, Washington got worried and decided to step in to help. In December of 2009 mortgage rates were at a historical low. There were ideas of making a tax credit that would be 10% of the purchase price to help lower mortgage rates for anyone who bought a home. They thought that this would make people jump at the opportunity and finally make that first purchase. Another idea was to help struggling owners lower their mortgage and refinance. The problem with this was finding out who should really be saved. Purchasing is an amazing first step. It’s a great way to start securing a financial future for you and or your spouse and family. The big question is, are you ready? One of the first things that you will need to figure out...
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...Tax Issues Relating to Bitcoins Wipula Kurudugahamada Research in Taxation Professor Richard L. Russell April 9, 2015 Tax issues relating to Bitcoins 1. Introduction What are the flat currencies? The currencies created by a government. Then there is a central regulatory agency responsible for the issue. The accepted characteristics of present day use money are included a store of value, a unit of account, and a medium of exchange. However, the supplies of currencies are governed and authorized by the central bank on behalf of the government. However, after the mortgage crisis in 2008 the money supply increased sharply therefore the confidence in the government issued currency declined among the people. At this point, the paper by Satoshi Nakamoto was published online describing the “Bitcoin” for the first time. In the opinion of Nakamoto, the major problem with conventional currency today and discussed the easiness of bitcoins.1 In a nutshell, Bitcoin is an electronic cash system started in 2009. Therefore, it is new to the market. Still most of the countries have been studying the system and how it operates. But it is not fully accepted in a lot of countries as a legal tender. There are more than hundred thousand vendors in the market today who accepts bitcoins as a currency. There are more than sixty thousand in the USA.2 However, until March, 2014 IRS notice 2014-21 came into operation; the bitcoin was treated as currency in the USA for tax purposes...
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...career in respective filed. I have completed some business courses (Bachelor Degree in accounting from University of Calcutta, India, Master Degree in accounting from National University, Bangladesh and Certified Cost and Management degree from The Institute of Cost & Management Accountants of Bangladesh) but my intention to earn a real education from USA. After migrate to USA I have been working with Certified Public Accountant. Working with real world and professional environment I think accounting degree in the united state is better than any other degree to reach to destination of future career. My final academic/ professional goal in my life to became a certified public accountant. Accounting is the study of how businesses track their income and assets over time. Accountants engage in a wide variety of activities besides preparing financial statements and recording business transactions including computing costs and efficiency gains from new technologies, participating in strategies for mergers and acquisitions, quality management, developing and using information systems to track financial performance, tax strategy, and health care benefits management. There's a lot to get out of a career in accounting. The basics of how a business works will be learned. The field of accounting offers stimulating and challenging work that is...
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... Determine his residential status for A.Y. 2014-15 and 2015-16. 4. Mr. Jack, a foreign citizen (not being a person of India origin), comes to India, for the first time in last 30 years on April 15, 2005. During the F.Y. 2010-11, 2011- 12, 2012-13, 2013-14 and 2014-15 he is in India for 130 days, 80 days, 13 days, 210 days, and 75 days. Determine his residential status for A.Y. 2015-16. 5. Mr. P was born in Lahore in 1946. He has been staying in England since 1970. He came to visit India on 03.10.2014 and returns on 30.3.2015. Determine his residential status for A.Y.2014-15. SCOPE OF TOTAL INCOME 1. The following are the particulars of income of Mr. X for the previous year 2014-15 | |Rs. | |Rent from a Property in Delhi received in USA...
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...Legal Forms of Business Mike Robertson LAW531 May 7, 2012 Julie Benes Legal Forms of Business The well-informed businessperson understands choosing the correct business form is important. The type of business form determines what type of business organized, how money flows in and out of the business, how the business and owners are taxed, and the levels of risk to owners. There are several types of business forms. These types are sole proprietorship, partnership, Limited Liability Partnership (LLP), Limited Liability Company (LLC), S Corporation, franchise, and corporation. The businessperson needs to have an understanding of which business form is justified for their business startup. The beginning businessperson looks at the sole proprietorship a majority of times because of its simplicity (Anthony, 2011). A sole proprietorship is the simplest form of business organization. The owner of the business, the sole proprietor, is the business. There is no separate legal entity. Sole proprietorships are the most common form of business organization in the United States (Cheeseman, 2010). One example of a business that becomes a sole proprietorship is an independent contractor. The future business owner completes work for a business, but they are not an employee of these companies, they are considered self-employed and therefore a sole proprietor. Most person call this “moonlighting.” For example, if an electrical contractor with a full-time job also does home electrical...
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...The Value of Value-Added Tax Wayland Baptist University 3 May 2012 The Value of the Value-Added Tax Introduction Americans seem to fear taxes, but consistently complain about the economic instability of this country. A great deal of Americans does not even understand how to calculate the collection of, or expenditures of the percentage of taxes they pay on an annual basis. Other countries have adopted the value-added tax and are not in a massive hole of debt such as the United States. Is there value to the value-added tax? As history has indicated for hundreds of years, taxes are required for a country to face economic growth and to become prosperous. The income tax plan that is currently in place is not helping the United States economy in the least especially compared to our expenditures. But exactly which tax method would be of greatest value for the United States’ to begin the slow hike uphill to conquer the massive hole of debt. Is the income tax or consumption based tax best for Americans? This research paper may not answer the United States economic problems, but will define the various taxes and how they may benefit American’s current economic instability. Literature Review Mr. James R. White is the Director of Strategic Issues within the United States Government Accountability Office. The following article was in his testimony before the Committee on Ways and Means, House of Representatives, “Value-Added Taxes: Potential Lessons for the United...
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...allows a state authority to tax the company. Creating nexus in various states can produce increased administrative costs; however, nexus can also allow for lower tax expenses. California has been ranked in the ten worst states for businesses by the Tax Foundation. Virginia was number six for their corporate tax rank. California states that if tangible personal property is shipped from an inventory in California to a state that is protected from imposing tax (one reason could be protection by the P.L. 8-272) (R&TC § 25135) it should be thrown back to California and taxed by California (Cal. Code Regs., tit. 18 section 25106.5 through 25106.5-11). Creating nexus will result in the avoidance of the throwback to California. Apportionment Factors: The calculations were made based on the states formula provided by the state for the apportionment purposes. Such as Florida Rule 12C-1.015; Illinois, 86 III. Adm. Code 100; Maryland Reg 03.04.03.08; Sec 58.1-414 Virginia code; TTC 171.1055 Texas code; and Rule R865-6F-8 Utah. Strategies: Currently a majority of Cougar’s income is being apportioned to California because Cougar does not have nexus in other states. We can create strategies that will move the apportioned income away from California and into more favorable states including Virginia. We calculated the approximate amount of tax savings following the implementation of each of our suggested strategies using the same apportionable income calculated by the company...
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...Washington DC, USA Review of the Tax System in Bangladesh A Prerequisite for Industrial Growth T. A. M. Nurul Basher* E-mail: nurul-basher@betelco.com Abstract - This paper has been written to highlight the sustainable industrial growth problems being faced by the entrepreneurs in Bangladesh. There are multifarious problems for Industrial growth in Bangladesh but the major bottleneck is the adverse tax system. There exists no consideration for industrial raw materials import in so far as application of duties and taxes compared to those of finished consumer goods. The net result is increase in production cost which in turn makes the product noncompetitive. So as not to create an extra burden on industrial productions, the government needs to remove duties and taxes from imported raw materials as in many Middle Eastern countries and Thailand. The government implicitly accepts the adverse effects of the improper taxes on our industrial growth and has tried partially to alleviate some of these impediments by creating Export Processing Zones and Bonded Ware Houses; this paper explores the benefits doing away with these high import duties altogether. It also looks at the paybacks to the economy from industrial growth. Finally, the expansion of the income tax umbrella is considered and in particular its effects on growing a greater sense of national civic duty and its impact on the voting patterns of the electorate. [1] to this, the average per-capita income of developed countries...
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