This document contains notes and discussion prompts about various taxes and tax policies. It discusses different types of taxes like income tax, sales tax, corporate tax, and estate tax. It outlines the current tax rates in the US and other countries. Several debates are presented around different tax issues with arguments for increasing or decreasing certain tax rates. Students are prompted to choose a side in each debate and discuss their opinions with partners.
Rich States, Poor States Rankings, 9th EditionALEC
The 2016 state economic rankings for the ninth edition of Rich States, Poor States from the American Legislative Exchange Council (ALEC) track economic trends across the country.
For more information, visit alec.org
Please take the opportunity to view this presentation on why there are positives out there in the market, while looking at those that still concern us!
Could the U.S. Ever Adopt a National Sales Tax?Joe Garza
With the 2016 election around the corner, the U.S. has been debating what changes should be made to the U.S. tax code. This presentation questions if a national sales tax would be a viable solution.
Rich States, Poor States Rankings, 9th EditionALEC
The 2016 state economic rankings for the ninth edition of Rich States, Poor States from the American Legislative Exchange Council (ALEC) track economic trends across the country.
For more information, visit alec.org
Please take the opportunity to view this presentation on why there are positives out there in the market, while looking at those that still concern us!
Could the U.S. Ever Adopt a National Sales Tax?Joe Garza
With the 2016 election around the corner, the U.S. has been debating what changes should be made to the U.S. tax code. This presentation questions if a national sales tax would be a viable solution.
Tax Foundation University 2017, Part 3: Modeling Tax Changes — Which Help, Wh...Tax Foundation
This lecture explores how the consequences of policy options can be determined and why they should guide the reform effort. The Tax Foundation's Taxes and Growth Dynamic Tax Model will be demonstrated.
Also discussed: the benefits and limitations of dynamic vs. static analysis and scoring of tax changes, which tax features harm growth the most, which potential reforms help the most, and which revenue offsets hurt the least. Differing views of how to predict the effects of tax changes on economic growth, how different models view the effect of the federal budget deficit and the Federal Reserve on the outcomes, and the proper role of monetary policy.
Register for Tax Foundation University Online here: https://taxfoundation.org/tax-foundation-university-remote/#enroll
Ron shared with us his thought on the origins of taxation, the enlightenment thinkers on taxaxtion and as a CPA, the alternatives to the current tax system in the United States.
Ron acknowledged that many insights he shared were found in Charles Adams great book, For Good and Evil: The Impact of Taxes on the Course of Civilization.
Tax Research MemorandumTo File From Your Name .docxrhetttrevannion
Tax Research Memorandum
To: File
From: Your Name
Date: Enter Date
Re:
Client name and Tax Year.
Facts
Paraphrase the relevant facts. Remember that this is going to the client’s file and be reviewed and used by someone unfamiliar with the case.
Issue & Conclusion #1
Issue: State the most important issue in the form of a question?
Conclusion: Answer to the question above in one to two sentences.
Analysis 1
Explain here how you came to the conclusion above, relate back to the case and be sure to cite primary authority. Explain how that primary authority relates to the facts of this case. For example if you find a court case where the court findings are helpful to your argument explain how the facts in that case are similar to the facts of the client. This should be at least a paragraph or two in length for each source. At least one primary source per issue, all citations included in the memo can be either footnoted or inline. Inline citation example: “Pursuant to IRC
§123 income earned by a taxpayer which is not related to blah blah blah would be taxable.” Repeat the same process for each issue.
Issue & Conclusion #2
Issue:
Conclusion:
Analysis 2
Issue & Conclusion #3
Issue:
Conclusion:
Analysis 3
Issue & Conclusion #4
Issue:
Conclusion:
Analysis 4
Issue & Conclusion #5
Issue:
Conclusion:
Analysis 5
Hawaiian Memories, Inc. Tax Research MemorandumDue Date: Wednesday, November 30 at 11:59 pm
Purpose: The purpose of this is to enable you to meet the following goals:
· Understand the role of a tax practitioner
· Identify the tax issues involved in a scenario
· Be able to conduct comprehensive tax research utilizing on-line tools to formulate a solution to the issues raised.
· Be able to articulate and defend a tax position in writing.
Task: In order to successfully complete this assignment, you must:
· Prepare a memorandum to the tax manager outlining the information you found in your research.
· Follow the examples of file memoranda using the formatted Word document included. Format the memo to include:
· Restatement of Facts (paraphrase)
· Identify at least three main issues based on these facts
· Provide a conclusion for each issue
· Include the analysis that led you to the conclusion for each issue. This analysis should refer to the primary authority that best addresses the issue.
· Primary authority would include items such as the Internal Revenue Code, Regulations, Court Cases, etc. These also should be paraphrased to highlight your understanding of the primary authority and how it relates specifically to the issue. IRS Publications and Tax Topics are NOT considered primary authority for this assignment.
· Submit the assignment using a Turnitin assignment drop box.
· Turnitin, is an online resource that checks your work against the submissions of others, books, articles, tax code, etc., to verify.
Tax Foundation University 2017, Part 3: Modeling Tax Changes — Which Help, Wh...Tax Foundation
This lecture explores how the consequences of policy options can be determined and why they should guide the reform effort. The Tax Foundation's Taxes and Growth Dynamic Tax Model will be demonstrated.
Also discussed: the benefits and limitations of dynamic vs. static analysis and scoring of tax changes, which tax features harm growth the most, which potential reforms help the most, and which revenue offsets hurt the least. Differing views of how to predict the effects of tax changes on economic growth, how different models view the effect of the federal budget deficit and the Federal Reserve on the outcomes, and the proper role of monetary policy.
Register for Tax Foundation University Online here: https://taxfoundation.org/tax-foundation-university-remote/#enroll
Ron shared with us his thought on the origins of taxation, the enlightenment thinkers on taxaxtion and as a CPA, the alternatives to the current tax system in the United States.
Ron acknowledged that many insights he shared were found in Charles Adams great book, For Good and Evil: The Impact of Taxes on the Course of Civilization.
Tax Research MemorandumTo File From Your Name .docxrhetttrevannion
Tax Research Memorandum
To: File
From: Your Name
Date: Enter Date
Re:
Client name and Tax Year.
Facts
Paraphrase the relevant facts. Remember that this is going to the client’s file and be reviewed and used by someone unfamiliar with the case.
Issue & Conclusion #1
Issue: State the most important issue in the form of a question?
Conclusion: Answer to the question above in one to two sentences.
Analysis 1
Explain here how you came to the conclusion above, relate back to the case and be sure to cite primary authority. Explain how that primary authority relates to the facts of this case. For example if you find a court case where the court findings are helpful to your argument explain how the facts in that case are similar to the facts of the client. This should be at least a paragraph or two in length for each source. At least one primary source per issue, all citations included in the memo can be either footnoted or inline. Inline citation example: “Pursuant to IRC
§123 income earned by a taxpayer which is not related to blah blah blah would be taxable.” Repeat the same process for each issue.
Issue & Conclusion #2
Issue:
Conclusion:
Analysis 2
Issue & Conclusion #3
Issue:
Conclusion:
Analysis 3
Issue & Conclusion #4
Issue:
Conclusion:
Analysis 4
Issue & Conclusion #5
Issue:
Conclusion:
Analysis 5
Hawaiian Memories, Inc. Tax Research MemorandumDue Date: Wednesday, November 30 at 11:59 pm
Purpose: The purpose of this is to enable you to meet the following goals:
· Understand the role of a tax practitioner
· Identify the tax issues involved in a scenario
· Be able to conduct comprehensive tax research utilizing on-line tools to formulate a solution to the issues raised.
· Be able to articulate and defend a tax position in writing.
Task: In order to successfully complete this assignment, you must:
· Prepare a memorandum to the tax manager outlining the information you found in your research.
· Follow the examples of file memoranda using the formatted Word document included. Format the memo to include:
· Restatement of Facts (paraphrase)
· Identify at least three main issues based on these facts
· Provide a conclusion for each issue
· Include the analysis that led you to the conclusion for each issue. This analysis should refer to the primary authority that best addresses the issue.
· Primary authority would include items such as the Internal Revenue Code, Regulations, Court Cases, etc. These also should be paraphrased to highlight your understanding of the primary authority and how it relates specifically to the issue. IRS Publications and Tax Topics are NOT considered primary authority for this assignment.
· Submit the assignment using a Turnitin assignment drop box.
· Turnitin, is an online resource that checks your work against the submissions of others, books, articles, tax code, etc., to verify.
Tax Research MemorandumTo File From Your Name .docx
040510 econ taxes 50m
1. Good Day! DRAW A LINE SEPARATING TODAY & YESTERDAY 1) Write: Date: 04/07/10 , Topic: Taxes 2) On the next line, write “ Opener #38 ” and then: 1) Plot your mood, reflect in 1 sent . 2) Respond to the opener by writing at least 2 sentences about : Your opinions/thoughts OR/AND Questions sparked by the clip OR/AND Summary of the clip OR/AND Other things going on in the news. Announcements: None Intro Music: Untitled
2. Agenda 1) Tax Introduction 2) Business Plan 2 Work Time End Goal, you will be able to… 1) How should we change our tax policies? Reminder 1) Biz Plan 2 due Thurs
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5. Work #37a , Title “ Taxes Debate ” 1) Read the 2 sides, choose 1 side, and write which you choose and explain why . 2) Then write down what your partner thinks ( include their name at the end ). 1 2 3 4 5 CON: Taxes are Patriotic 1) Taxes pay for things that we benefit from, but can’t afford ourselves (schools, security, etc) 2) No person is an island, so taxes allow us to help every American live well PRO: Taxes are Evil 1) Taxes waste your money, you can buy things yourself (schools, security, etc) 2) Taxes make it hard for us to live well, by taking away our money
9. Work #37b , Title “ Denmark Debate ” 1) Read the 2 sides, choose 1 side, and write which you choose and explain why . 2) Then write down what your partner thinks ( include their name at the end ) . 1 2 3 4 5 CON: Denmark’s 59% 1) People in Denmark might not be the richest or most powerful, but they are the happiest 2) Free health care, paid for vacation time, and free education, so less debt. PRO: America’s 35% 1) Already, you work Jan-April for the gov, and just May-Dec for yourself 2) Money = freedom, if I work hard, I can buy the things Denmark provides, and make my own choices on the way.
10. Notes #37a , Title: “ Taxes ” 1) Corporate Income Tax : Approx 20% federal tax on profits, CA: 8% tax 2) Personal Income Tax : Approx 0-35% federal tax on income, CA: 0-9% state tax 3) Sales Income Tax : Tax on final point of sale 4) Europe: Valued Added Tax (VAT) : Tax at each stage product is improved, Europe Avg: 15% 5) Social Security Tax : Approx 7% tax on workers to pay for welfare of those not working, shows up as: FICA, SS, SSWT or OASDI 6) Estate Tax (Death Tax) : Tax on gifts + inheritance, 0% (up to 3 mil) 45% each $ after
11. 7) Withholding System : Since 1943, gov ask biz to withhold worker’s income tax & pay for them FED: Fed Income Tax SIT: State Income Tax FICA: Social Security SUI: Unemp Insurance MEDICARE: Old Ppl H.C.
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13. Notes #38a , Title: “ Do Mr. Chiang’s Taxes ” 1) W-4 : Withholding enrollment form. Exemption # determine how much withheld: “ 0”: Biz withheld a lot, tax refund likely “ 1”: Biz withheld about right, minimal refund/due “ 2”: Biz withheld little, taxes due likely 2) W-2 : Annual report from your boss of how much of your taxes boss paid for you. 3) April15 : Due date to file last year’s taxes ( W2 )
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16. 4) Tax Refund : Refund of some withholding 5) Deduction : Lowers your taxable income, the earning level used to measure your tax (donations) 6) Tax Credit : Real money refund or free money, (college spending) 7) Earned Income Tax Credit (EIC) : Tax credit for poor, who pay no taxes, but gov gives money to help them live.
17. Do Mr. Chiang’s Taxes ( 10 Points ) Don’t make fun of Mr. Chiang’s pay, the chance to work with you each day is… priceless.
18. Review 1) Corporate Income Tax : Approx 20% federal tax on profits, CA: 8% tax 2) Personal Income Tax : Approx 0-35% federal tax on income, CA: 0-9% state tax 3) Sales Income Tax : Tax on final point of sale 4) Europe: Valued Added Tax (VAT) : Tax at each stage product is improved, Europe Avg: 15% 5) Social Security Tax : Approx 7% tax on workers to pay for welfare of those not working, shows up as: FICA, SS, SSWT or OASDI 6) Estate Tax (Death Tax) : Tax on gifts + inheritance, 0% (up to 3 mil) 45% each $ after WHO COLLECTS WHAT?
19. Notes #38b , Title: “ Taxes, Part 2 ” 1) Federal Revenue : Biz Income + Person Income Tax (+Soc Sec Tax) Capital Gains Tax (Income Tax on Investments) Excise/Customs Tax (Foreign Goods) Estate Tax (Inheritance) 2) CA Revenue : Biz Income + Personal Income Tax + Sales Tax 3) County+City : Property Tax + Sales Tax + Fees 4) Prop 13 : Limit prop tax to 1% of bought price ( reduce gov+school rev )
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21. Work #38a , Title “ Tax Debates ” 1) Read the 2 sides, choose 1 side, and write which you choose and explain why . 2) Then write down what your partner thinks ( include their name at the end ). 1 2 3 4 5 CON: Increase Customs Tax Rate 1) Increasing tax on for. goods can help US biz 2) It’s paid by foreigners, so less taxes to be paid by American tax payers PRO: Lower Customs Tax Rate 1) Lowering this tax will encourage for. nations to lower tax on US goods 2) It hurts shoppers, since US biz can charge more, if their for competitors’ prices are higher b/c of tax
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23. Work # , Title “ Corp Tax Debate ” 3) Read the 2 sides, choose 1 side, and write which you choose and explain why . 4) Then write down what your partner thinks ( include their name at the end ). 1 2 3 4 5 CON: Increase Corp Tax Rate 1) Biz won’t leave, b/c taxes help pay for stable infrastructure and legal sys 2) Biz create negative externalities like pollution which must be cleaned up through tax money PRO: Lower Corp Tax Rate 1) Biz leave US to other countries with lower taxes if we don’t lower 2) Less corp taxes more directly leads to more money to create jobs
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25. Work # , Title “ Estate Tax Debate ” 5) Read the 2 sides, choose 1 side, and write which you choose and explain why . 6) Then write down what your partner thinks ( include their name at the end ). 1 2 3 4 5 CON: Increase Estate Tax Rate 1) This money is more needed by the gov, than the inheritors, first $3 mil already tax free 2) Every generation should have to make their own start in life PRO: Lower Estate Tax Rate 1) Dead already paid tax on this money when they paid income tax 2) We should have the right to help our children live better lives
28. Red: No personal income tax Yellow: No income tax, but there is capital gains tax State Income Tax Map
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31. Work # , Title “ Sales Tax Debate ” 7) Read the 2 sides, choose 1 side, and write which you choose and explain why . 8) Then write down what your partner thinks ( include their name at the end ). 1 2 3 4 5 CON: Increase Sales Tax Rate 1) Lead to less wasteful consumption, more saving 2) High sales tax will help raise money for CA’s budget crisis (schools) PRO: Lower Sales Tax Rate 1) Lower sales tax increases spending, stimulate the economy 2) Sales tax hurts poor more, since the flat rate of 8% is harder when you make less money.
32. Work # , Title “ CA Tax Debate ” 9) Read the 2 sides, choose 1 side, and write which you choose and explain why . 10) Then write down what your partner thinks ( include their name at the end ). 1 2 3 4 5 CON: CA Needs More Taxes 1) High taxes help pay for services CA life, and who would leave beautiful CA 2) CA budget crisis can only be solved with higher taxes PRO: CA Needs Less 1) Biz and ppl are leaving CA b/c of high taxes 2) Lower taxes would actually bring more tax revenue to the gov (Laffer)
33. Work # , Title “ Prop 13 Debate ” 11) Read the 2 sides, choose 1 side, and write which you choose and explain why . 12) Then write down what your partner thinks ( include their name at the end ). 1 2 3 4 5 CON: Get Rid of Prop 13 1) If we can charge more than 1%, we can help our schools 2) At the very least, we should allow the 1% to be charged of the current value, not the value at the past point of sale. PRO: Keep Prop 13 1) 1% tax is already really high for many home owners ($1mil house, means $10k a year) 2) Many seniors on fixed incomes can’t afford any higher taxes if you re-value their house
34. Notes #38c , Title: “ Taxes Reform ” 1) Progressive Tax : Tax that rate goes up with earnings: Income Tax 2) Marginal Tax Scale : Multi-level, rate goes up after certain amount, prevents cheating 3) Flat Tax : Simple same tax rate for everyone ( Considered regressive b/c hurts poor more)
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38. 4) U.S. Class Levels: Top 1/3: $65k Top 1/4: $80k Top 1/5: $90k Top 15%: $100k Top 10%: $120k Top 5%: $160k Top 1%: $400k Top 0.1%: $1.6m Avg US: $52k
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46. Work #38b , Title “ Poor v Wealthy ” 1) Copy Source Title: ABC+ CNBC 2…) Discuss questions on the board with a partner. Summarize your discussion ( include their name at the end ). Remember participation points are deducted if off task. 5 Reading/Film Qs Come From These Work Sections
47. Work #38c , Title “ Rich v Poor Debate ” 1) Read the 2 sides, choose 1 side, and write which you choose and explain why . 2) Then write down what your partner thinks ( include their name at the end ). 1 2 3 4 5 CON: 60% on Over $1mil 1) Those who make 80,000 a mo/2,700 a day can afford to pay 60% on every dollar over $1mil 2) These people benefited most from America, so they should give back to the poor who need help PRO: Keep or Lower Highest Tax Brack. of 35% 1) Rich already pay the majority of the nation’s (1% paying 40% of bills) 2) High taxes will discourage success and productivity, thus lower gov tax revenue (Laffer)
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50. Work # , Title “ Flat Tax Debate ” 1) Read the 2 sides, choose 1 side, and write which you choose and explain why . 2) Then write down what your partner thinks ( include their name at the end ) . 1 2 3 4 5 CON: Keep our current progressive tax 1) Rich can afford to pay more 2) This hurt poor more since 20% of poor is more painful than 20% of a millionaire’s income PRO: Create a 20% flat tax 1) This is the most fair 2) This would make taxes far easier to collect, we could do away with deductions, and have a tax form that takes no lawyers, and is doable in 10 minutes
51. Review 1) Corporate Income Tax : Approx 20% federal tax on profits, CA: 8% tax PROGRESSIVE 2) Personal Income Tax : Approx 0-35% federal tax on income, CA: 0-9% state tax PROGRESSIVE 3) Sales Income Tax : Tax on final point of sale FLAT 4) Europe: Valued Added Tax (VAT) : Tax at each stage product is improved, Europe Avg: 15%
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53. Work #38d , Title “ Nat Sales Tax Debate ” 1) Read the 2 sides, choose 1 side, and write which you choose and explain why . 2) Then write down what your partner thinks ( include their name at the end ) . 1 2 3 4 5 CON: No federal sales tax 1) People would shop less, this would hurt jobs 2) This would hurt poor people since they don’t pay income tax, but would have to pay the sales tax PRO: Create a 23% sales tax 1) Encourages earning more money + savings 2) Easier to enforce, this would be better for the environment, since it reduces consumption
54. Homework: 1) Work on Project 2 due Thursday 4/08 ( Ad Optional ) Your Sections for Written Plan (look professional: bolds, use spacing, bullets) Your Sections for Presentation (fewer words, clean formating) 30 Second Presentations (2 min total )