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ACC 4250 SINGAPORE - Flash (Large) - 20110514 05.16.29PM
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what are the ASX program at forty to forty to fifty and a boil. our first slide to chapter one. and as indicated in the course material. the first slides cover of a basic general overview of. individual taxation. and United States taxation in general. we thought that our of program by looking at to. general. light to. which contains about two. fourteen of fifteen different tax. items tax categories. from income tax property tax. um. and to. the focus of this court. mostly on the income tax. we will discuss a wide inheritance and gift taxes. of the impact for the of the the relationship between social security taxes Medicare taxes. and employment taxes. um. the purpose of taxation in terms of trying to work. angel went up into a B a B a with respect to. in taxes. curbing cigarettes liquor beer. gambling accept. when the tax lawyer of the tax process when United States. um. the purpose of taxation is really fun. the operations of government. in the opening introductory course lecture I emphasize the use associated with the. the differences and the branches of government United States the executive the congressional legislative that is and the. traditional interpretive center the tax law and tax process for directly we've been or will blow the shit. or category. and therefore um. the process of the purpose of taxation primarily first purpose is to raise in the every revenue. to run the did run the government. basically. more intricate social policy and economic policy reorganization follow. through the legislative process. the negotiations ended on the cost states representing various constituencies within the United States. age group racial groups. will. taxpayers largest taxpayers in terms of wealth income or will baguettes. argued and rationalized and debated through the legislative process. so of the famous quote from olive Wendell Holmes taxes. so what we pay for the book. but Friday is basically. the revenue collection process for purposes of operating the government hiked walked about private market failures in the large opening in the intro them. and there's no question that. they would be chaos. the government was so streamlined then it basically undertook no intervention. in markets that had discontinuity or failures. um we have the private market. the law doesn't know that doesn't have incentives to operate. why three um deal with. famous quote that although of attacks process is of voluntary. um it does that then it is mandated to the federal statute unconstitutional law. um there's no requirement to take more then once they're here. and to the great learned hand. second circuit judge in New York was the primary response the person responsible for that. important. inside. the. enormous. the end of the tax was demonstrated in. life number. by and then just in the email to work. that word said or written into the federal statute. mind boggling. no telling him to get intense. the number of words. of but never upset the tax law. of. this is demonstrated even further. the world. beginning the end from fifty for the period fifty five to two thousand so I didn't like that. characteristics of attacks. um provided. some of. important to criteria in terms of why it tax what the tax would tax does what it did. flight seven. transfer of resources from the private to the public sector. it should be not appeal. um. beneficiary charge should be compulsory but not this tutorial the way to tax is not about. a taking of property without due process must comply with the fifth amendment of the Constitution. um it's based on predetermined criteria that last one is very important must be certain predictable. tax war that is ambiguous creates extreme problem. it'll area's first in compliance with oh two we need to file the tax law which is basically all citizens and tax persons with an operating of. within the United States. and foreign entities doing business in United States. um. secondly of attacked the and the government to govern itself whether it be the IRS or state government. the department charged with to administering the tax lawyers and collecting the tax laws if so what is uncertain and unpredictable. it makes the collection and. and determinations of tax is quite complex. and then of course the judicial system itself. toy with the responsibility of interpretive the tax law. and disputes arise. the greater the degree of uncertainty the greater the unpredictability associated with the particular aspect of the tax will the world greater the likelihood that we will be faced with some judicial response from the four o one side to run into court for a week after it all administrative procedures have been exhausted. again a judicial ruling. this attack was as we indicated earlier the primary of having revenue for the tuna. for the purpose of operating government is one of the major. objectives but in the process tax mostly uses instruments social policy. several examples are provided in light of that and specifically education savings retirement housing. the exclusion of knowledge. low we don't the government doesn't view of of receipt of scholarship money as a taxable event. in most cases and the rationale behind that of course it's to promote. individuals seeking funding for education. not the end. but after they received such funding take part of it back into the fiscal. thank. they didn't in retirement. there is obviously to encourage individuals to the tax law to take advantage of. transactions and or enter into transactions that basically sacrifice current consumption for future consumption like changing. motivation is an economic the investment behavior. and of placing my um current of capital into of future. distribution. still that in the current format there's less income tax in the and the current year. many cases to borrow some cases it's in exclusion. anti wait to go role of IRA. further example one flight eleven. deal with employment research experimentation a very important one we are which. as much foreign the turn in areas such pharmaceutical medicine and medical equipment. oil drilling. as much activity in terms of innovation and technology that can take place. oh. the further when he into the tax laws by providing the bowl tax credits for tax deductions that credit being the for and will discuss. the nomenclature in tax form the difference is important though they deduction for credit. RI where tax expenditures. in a. slide twelve. going to revenue was feeling tax particular item of income were Lal in the deduction or credit to reduce the tax could otherwise be paid and it's kind of looking at flipping the Orange Party the whole model. and looking at the process of taxation saying look like tax everything. then in general everything hundred percent tax would raise the entire amount of Konami. to implode the economy and tickle money into the government. however as I've reduce debt hundred percent or as a move that percentage lower loan law or their non innocents. creating an opportunity course to the government. the government has an opportunity course the economics of not taxing one not receiving an economic benefit of resorts out of the system. and the of war. it is in essence promoting some activity by not taxes. of the base. are important in line in the slide fourteen. there's been a continuous debate in over the last decade. between the consumption or value added tax and an income tax. the income based team no question of ordinary income employment. they're also clearly states the day with transactional taxes. and then we have been mothering areas such as French ice tax due date. undertake go and watch of the area. corporate entities a minimum tax or attacks based on theory factors such as income revenue. capital employed labor employed. in terms of acting duo of those entities. what the criteria for the attacks. light to the net net. father of economic basically given up some of the troubled important fact is a horrible player comes back a little bit. the concept earlier about though. during the voluntary aspect but not necessarily of making every taxpayer to pay a maximum on the every and we look at how recital equity take between two people to generally situated tax pays for the wind up paying the same tax. I've been certain facts. if they don't then perhaps something is awry he did a calculation or there's an inequity. current. of purple equity we've heard to the concept of of. some progress given the verse we read city. um. and of trying to set the tax so according to a principle known as the ability to pay. it would be simple not complex. it's back to the ambiguity like images of the tax gets very complicated. and there's lots of ambiguity and that stated earlier this a very good likelihood we'll be challenges in wide open court was also makes collection quite complex. to the efficient economically efficient. also productive. in efficient and productive tax. tend to slow down Norwood toward the economy. you white sixteen we we urge to the second socially and economically and favorable public opinion. and that's an interesting criteria look at um. because. if the public to the fact that tax is being contested Tories or the penalty. there is less likelihood where there's a greater likelihood of non compliance. and though less likelihood of voluntary come. which again. it deals with the selection. course. unintended consequences in conflicts between goal. of attacks may be directed a one car did and then wind up creating unintended consequences that could be the purpose of the tax to begin with that in economics we wind up having a negative next analogy so it was tax. in the slide in nineteen. we talk about we look at the tax of structure of of personal income taxation and how taxes are calculated. notice the um twenty to twenty ten tax table and the way to represent the marginal rates meaning. every dollar. over the rack it gets tax bad as the increasing rate is example that will progress into the abstract of tax structure. then of course if you will get the whole email. tax. you can calculate the beginning bracket date. and the thirty seventh in the wood and the data to the second bracket would team with two we increase. for me. we further explained Boral is the period. concepts and terms structures. I'm. the progress of the nature of the tax or varies directly with the. we all are is of the rates. these days. to redress that indeed there are berries in her sleep. questions of difficult tax swallow. sales tax and ultimately turn into a very regressive nature they affect low income taxpayers much greater than high income tax. um simple example within twenty one. get chills and the importance of the marginal tax rate when you are when the tax payer is perhaps considering the example of what we call me the pot. a bond that he is exempt for federal tax purposes it may be exempt for. but taxpayers. they the residents as well of living in Massachusetts who buys the Massachusetts state bonds would not pay. both federal and state taxes on the trees income associated with that. the analysis. look at the marginal tax rate. on the and the after tax healed of days. bond that is fully tax for the bond that is. except so bad that builds individuals. they have to tax yield on the page. none of municipal bond of a percentage equaled the noble fight point two percent. Keogh. I'm doomed to municipal court. and that's how you would calculate. yet the tax deal. so it's attacks there are the white twenty two o is certain bracket. you can calculate what is the quilt went tax exempt deal with today. by subtracting out said dear friends the tax said the proportion teal that's not tax. so taxpayers have incentives. there are other more complex issues to get into this question so old turn of minimum tax will save those for later. but on its face and simplistic matter that the calculation. had this debate about whether the the. tax law should be progressive. and as you can tell a lot of it has to do we use question of. watch your economic theory and diminishing marginal utility and the re distribution of income there is. and all are yours is economy and the macro Konami better watch it. we have the eighty we distribution component. rather than having all taxpayers. pay a flat tax would call it of how much wealth and income they. they earn. another important aspect of. understanding the tax accounting process to be able to distinguish. financial accounting and tax accounting. and this becomes extremely important in the corporate and wanted to be area's or business at the areas of because generally a reconciliation is done. I and every tax return between the financial accounting. that's tax of. the computation of love recorded income for the tax accounting. the basic income tax for the Luzon white twenty five. and as you can see. after a exclusion zone deduction the rate is applied to taxable income. and ultimately a taxes still. like any slide is included to describe the day tax which is basically attacks on transfer of wealth among been close family to transfers of wealth. and it's been a warned debated topic in issue in the American star collection on MC today. or whether such tax should do so. and the. one of the white terrier won the argument been that the concentrated wealth. ultimately to the West. economic activity. and that kind of did you get close in with a lot to me or compliment them on command. that is presented in the antitrust serious. um the slight twenty seven gives you a description of the key aspects of the of the attacks. slide twenty eight gives you the day tax formula. twenty nine is accused tax formula. I'm skipping along here. and ultimately. we have another set attacks. when we look at social Security Medicare taxes. oh which a levied on wages and self employment income. of. and that is important because we distinguish between employers and employees and those individuals who act as both employer and employees in the sense that this self employed entrepreneur. I'm the tax fifteen point three percent of self employment income and syndicated like thirty four. and so the question is what its self employment income. a dividend from IDM stock self employment income. the word doc office. do you. you get to come. consulting. associated with the self employment income were about to gain on the old self back. that self employment income. in the answer to the dreary but. as you can go in. white twenty thirty five. um self employment income and their earnings from self employment to slowing in the cold section and we will discuss at a time of in the next chapter. how we what it means to. to work at. the definition of self employed income and second that little lark that little symbol of section fourteen oh to be. it's not as good. try a ship in that income. she oh one the ship in college not dividend when oil team. the income and the you haven't done that it's less than four hundred. we have a huge area of the attacks of. focus on whether to follow we are dealing with employees or independent contractors. many companies prefer to be able to. create a label for independent contractors and the question becomes how much control. it's associated with those individuals and of course the differences allow employers to. not paid employment tax. it becomes a seriously investigated the matter from the point of view the government. because revenues are at stake. the classification criteria is in slide thirty seven years of protests but the primary one in control. and so if of the individuals providing services to a non controlled. um. recipient. were the recipient is not controlling the individual providing the services. then you generally outside of the independent contractor area. and the. the individuals not treated as an employee. samples or indicated in slide thirty eight. slide thirty nine the federal employment taxes imposed on employers who pay wages of fifteen hundred hours during calendar quarter. Lismore reporting requirements in this war tax. when it caught one employee or employees. employee. as opposed to doing business with independent contractors. it's also the unemployment taxes. white forty one. there are excise taxes and federal taxes. that we love our leader indicated the gentle boy view of categories attacks. lastly the last two slide deal with them and tax. basically a domestic worker in a household that one. at what point should the individual. while formally. we came in. way to end reporting that you can see the magic threshold of seventeen hundred in twenty ten. required only a third of federal income tax we hold in the one area where we where the tax law creates a little bit different. of strategy or mechanism. in which the of the employee or in this case the household actually could be paying the tax. who did and what you get all eight. this is a preliminary. introduction to the court. chapter one. avoid overview of the various categories attacks. and you are to continue so you text book. the trestle the course that cheerio. focus on all the assignments and the discussion board. thank you. take care bye.