Tax Essays

Recent decades, and especially recent years, have witnessed a phenomenon of great economic significance, a phenomenon that is having and will continue to have major implications for taxation. Income tax revenues have consistently risen as a percent of gross domestic product (GDP), now totaling 1.8 percent. The current federal income …

A sin tax is a kind of sumptuary tax: a tax specifically levied on certain generally socially proscribed goods and services, for example alcohol, tobacco and gambling. Sumptuary taxes are ostensibly used for reducing transactions involving something that society considers undesirable, and is thus a kind of sumptuary law. Sin …

            Using the internet has become a popular way for many people to shop and one of the main reasons that it remains popular is because customers don’t have to worry about paying taxes on the items they buy. By taxing internet purchases, many people will refrain from this type …

Sin Tax is a tax levied on products or activities, which are considered sinful or harmful and considered as objects of social disapproval, such as liquor and tobacco. Sin tax or sometimes called sumptuary tax is meant to reduce the consumption of those products or services by taxing them, aside …

The maximum amount of credit an employer can claim against the FUTA tax is 5.4 percent. What are the requirements that must be met? The FUTA tax rate is 6.2%. However, employers can claim up to a 5.4% credit against but there are certain requirements that should be fulfilled by …

Alternative minimum tax (AMT) was created in 1969 by the Tax Reform Act to make certain that high-income individuals, corporations, trusts, and estates pay at least some small amount of tax, in spite of any deductions, credits, or exemptions. It’s basically an alternative method used by the IRS for calculating …

According to Inland Revenue Departmental Interpretation and Practice Note No. 10, the Commissioner accepts that an employment is located outside Hong Kong if all of the following three conditions are satisfied. a.The contract of employment is negotiated and entered into, and is enforceable outside Hong Kong. b.The employer is resident …

Adam smith, the father of modem political economy, has laid down four principles or cannons of taxation in his famous book “Wealth of Nations”. These principles are still considered to be the starting point of sound public finance. Adam Smith’s celebrated cannons of taxation are: (1) Cannon of equality or …

Capital property: depreciable property and any other property the disposal of which would result in a capital gain Capital gains = proceeds – ACB Taxable capital gain = capital loss and gain are taxed at a rate of ½ Capital losses are denied: depreciable property, personal use property, deemed dispositions …

Fiscal Administration is not difficult to define. In simple terms, fiscal administration is the branch of economics that deals with the revenues and expenditures and their impact on the economy. It is the manner of collecting something from the constituents and spending it also for the constituents. And the exact …