There has been discussion about whether the Tax Cuts and Jobs Act that took effect in...
There has been discussion about whether the Tax Cuts and Jobs Act that took effect in 2018 will increase tax revenue. Tax revenue can be thought of an as average tax rate multiplied by taxable income. If the average tax rate falls while taxable income stays the same, tax revenue will fall. But what if the tax cuts increase taxable income? Both of the major schools of thought in macroeconomics (Keynesians and Neoclassicals) believe that tax cuts increase economic growth. Economic growth increases taxable income. Our recent economic growth has brought unemployment down to historically low levels.
Think about this.
Do you think that the tax cuts of the Tax Cuts and Jobs Act will increase economic growth and taxable income so much that tax revenue will increase? Or do you think that the tax cuts will reduce tax revenue? Explain your answers.
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There has been discussion about whether the Tax Cuts and Jobs
Act that took effect in...
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Prior to the Tax Cuts and Jobs Act, corporations faced a progressive tax rate schedule with rates ranging from 15% to 39%. Under that old tax law, a firm with taxable income of $100 million would have owed taxes of $35 million. Under the Tax Cuts and Jobs Act, the corporate tax rate is a flat 21%. For a firm that makes $100 million in taxable income, the size of the tax reduction that the firm enjoys because of the...
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Select the best answer. The Tax Cuts and Jobs Act: Requires the use of the FIFO method for determining the tax basis of stock shares that are sold in taxable accounts. Still allows the specific ID method for determining the tax basis of stock shares that are sold in taxable accounts. Requires the use of the last-in-first-out (LIFO) method for determining the tax basis of stock shares that are sold in taxable accounts. Requires the use of the dual category...
"An Analysis of the Tax Cuts and Jobs Act of 2017 2-3 Pages 5 Primary sources...
"An Analysis of the Tax Cuts and Jobs Act of 2017 2-3 Pages 5 Primary sources Interesting and Informative Use quotes from thought leaders, properly referenced DO NOT CUT AND PASTE- USE YOUR OWN BRILLIANT WORDS Provide a reference page.
"An Analysis of the Tax Cuts and Jobs Act of 2017 2-3 Pages 5 Primary sources...
"An Analysis of the Tax Cuts and Jobs Act of 2017 2-3 Pages 5 Primary sources MLA or APA style Interesting and Informative Use quotes from thought leaders, properly referenced DO NOT CUT AND PASTE- USE YOUR OWN BRILLIANT WORDS Provide a reference page.
Discussion Topic 1: The Tax Cuts and Jobs Act of 2017 substantially changed how the United...
Discussion Topic 1: The Tax Cuts and Jobs Act of 2017 substantially changed how the United States taxes foreign subsidiary operation of United States companies by establishing a participation exemption system for taxing non-Subpart F foreign-source income that a domestic corporation earns through a foreign corporation. How are dividend distributions made after January 1, 2018 treated? How does this create a quasi-territorial system for domestic corporations? Discussion Topic 2: The reforms enacted by the Tax Cuts and Jobs Act of...
The Tax Cuts and Jobs Act passed in December, 2017, eliminated any personal exemptions ($4,050 per...
The Tax Cuts and Jobs Act passed in December, 2017, eliminated any personal exemptions ($4,050 per preson) but increased the standard deduction to $12,000 for single filers and $24,000 for joint filers beginning in 2018 compared to $6,350 and $12,700 respectively in 2017. Ignoring any other changes made by the new tax law (and there are other important changes such as expansion of a child tax credit), what would the threshold for having any taxable income for a family of...
L LTE 2:41 PM Module 2 Discussion The 2017 Tax Cuts and Jobs Act ("TCJA") is the most significant...
l LTE 2:41 PM Module 2 Discussion The 2017 Tax Cuts and Jobs Act ("TCJA") is the most significant overhaul to the Internal Revenue Code since 1986. You can get a brief overview of the TCJA here. Everything you'll be learning in this course is in accordance with the new laws that are effective beginning this tax year (2018); however, l'd like you to consider certain differences when compared to the prior law to get a better understanding of the...
Here is major macro economic indicators of the economy from 2009 to 2016. 2009 2016 4.3%...
Here is major macro economic indicators of the economy from 2009 to 2016. 2009 2016 4.3% 0.2% Real GDP growth rate Unemployment rate inflation Tax revenues (% of GDP) National Debt to GDP ratio 10% 1.2% 19% 127% 23% -0.8% 27% 180% Government spending over that past decade has remained stable around 20% of GDP. Which of the following policies do you think is best for reversing the current situation? Consider the implications on economic activities of all choices and...
Here is major macro economic indicators of the economy from 2009 to 2016. 2009 2016 43%...
Here is major macro economic indicators of the economy from 2009 to 2016. 2009 2016 43% -0.2% Real GDP growth rate Unemployment rate inflation Tax revenues (% of GDP) National Debt to GDP ratio 10% 1.2% 19% 127% 23% -0.8% 27% 180% Government spending over that past decade has remained stable around 20% of GDP. Which of the following policies do you think is best for reversing the current situation? Consider the implications on economic activities of all choices and...
1. Explain what will happen to the price level real GDP and the unemployment rate in...
1. Explain what will happen to the price level real GDP and the unemployment rate in the following cases: a. AD falls by the same amount that SRAS rises b. AD falls by less than SRAS rises c. AD falls by more than SRAS falls d. AD falls by the same amount that SRAS falls e. AD falls by less than SRAS falls 2. Explain how expectations about future sales will affect investment. 3. How will a change in the...
Select the best answer. The Tax Cuts and Jobs Act: Requires the use of the FIFO method for determining the tax basis of stock shares that are sold in taxable accounts. Still allows the specific ID method for determining the tax basis of stock shares that are sold in taxable accounts. Requires the use of the last-in-first-out (LIFO) method for determining the tax basis of stock shares that are sold in taxable accounts. Requires the use of the dual category...
l LTE 2:41 PM Module 2 Discussion The 2017 Tax Cuts and Jobs Act ("TCJA") is the most significant overhaul to the Internal Revenue Code since 1986. You can get a brief overview of the TCJA here. Everything you'll be learning in this course is in accordance with the new laws that are effective beginning this tax year (2018); however, l'd like you to consider certain differences when compared to the prior law to get a better understanding of the...
Here is major macro economic indicators of the economy from 2009 to 2016. 2009 2016 4.3% 0.2% Real GDP growth rate Unemployment rate inflation Tax revenues (% of GDP) National Debt to GDP ratio 10% 1.2% 19% 127% 23% -0.8% 27% 180% Government spending over that past decade has remained stable around 20% of GDP. Which of the following policies do you think is best for reversing the current situation? Consider the implications on economic activities of all choices and...
Here is major macro economic indicators of the economy from 2009 to 2016. 2009 2016 43% -0.2% Real GDP growth rate Unemployment rate inflation Tax revenues (% of GDP) National Debt to GDP ratio 10% 1.2% 19% 127% 23% -0.8% 27% 180% Government spending over that past decade has remained stable around 20% of GDP. Which of the following policies do you think is best for reversing the current situation? Consider the implications on economic activities of all choices and...
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