TAX 655_ Discussion_ Week 10_ Post 1

The tax implications along the way would also be helpful to know. I do think that the tax

system does need to be revamped although I don't know what that would look like in the long

run for businesses The course titled ‘Federal Income Tax of Corporations and Partnerships’

has been extremely insightful and informative for me. By enrolling in the course, I have got

the opportunity to understand how tax rules and standards are applied in the context of

diverse types of entities such as partnerships, C Corporations, S Corporations, etc. The

concepts that have been covered in the course have helped me learn how different tax-

related consequences may arise while liquidating a business entity. Apart from focusing on

the taxation aspects while liquidating a business, it is essential to take into consideration the

be appropriately adopted to promote the economic growth of the nation (Acosta-Ormaechea

& Morozumi, 2021). It is used as a useful tax instrument in several nations, such as Canada,

Bahrain, etc. VAT is considered to be a simple and efficient way of generating revenue for

the national government so that a healthy economic landscape can be established (Bansal &

Alfardan, 2020). By introducing this new taxation model in the U.S.A, it will be possible to

keep a proper tab on diverse financial transactions and manage the money in an efficient

way which can help to optimally use funds that can facilitate national growth and

development. The strategic use of value-added tax can play an instrumental role in boosting

the economic growth of a nation and positively impact the quality of life of the citizens (Mjaku

2020).

wealthy, but in my opinion it would not. It would allow workers to take home their full

paycheck instead of taxes taken out. Then it allows consumers to only be taxed on what they

consume. So, yes it would make everyday items to cost more, however in my opinion it

would level the playing field. The rich has to by goods just like the working class and middle

class. This would allow the rich to pay taxes instead of using all the tax loop holes they get to

use as it is now. Social Security and Medicare will have a more solid foundation with the Fair

Tax Act as well. Also, in this Act there is a progressive program called "prebate". Every legal

resident would get a refund at beginning of each month so all purchases up to Poverty Level

are Tax free. This would also allow benefits for legal residents no illegal residents that avoid

mind wrapped around the different learning objectives. Has all the ready made me an expert,

absolutely not; maybe scratched the surface. Now at the end of the term, I am still

intimidated by tax preparation but found some understanding regarding the decisions to be

made when choosing which designation is a good fit for different situations. z This course has

also confirmed, for me, that taxation is an overwhelmingly complicated process. It will

continue to use my tax preparer for my filing.

Congress should always be considering an alternative approach to taxation because in the

event the scheduled outcome is not what was expected there is something in the wing to

push forward. z Having said that, “a value-added tax (VAT) taxes goods and services at every

stage of production and sale, the net economic burden is like that of a retail sales tax

struggles brought on the low-income families. I could be viewed as another ploy, by the

Federal Government, to make the rich richer and poor poorer.

Enacting a value-added tax or the Fair Tax Act can provide economic benefits, but at what

cost. “Because lower-income households spend a greater share of their income on

consumption than higher-income households do, the burden of a VAT is regressive when

measured as a share of current income. The burden, as a share of income, is highest for

Since I work with the US tax system I don't believe Congress should change the tax system,

at least not for Individual taxpayers. I think the corporate tax system should be overhauled to

ensure bigger companies like Amazon, Walmart, Nike pay more in federal income taxes.

They get a lot tax breaks that help avoid "double taxation."

up taking the burden is the consumers. As raw materials move down the supply chain I feel

as the if tax will be passed down to the buyer of the product, good, or service the price will

increase as the tax is passed along down the supply chain. This will result in higher prices

for the same good and services. Inflation is already higher than its ever been, the added

value tax will only harm consumers.

one keep track of who pays what? What about people who barter and trade for goods and

services? How would they be taxed. This Fair Tax Bill opens the door to so many questions.

Congress will have to find answers to these and a lot more as the we live in country is

always changing the way we do business . Currently with inflation everything is increasing

including sales taxes because sales taxes are proportionate to the the subtotal of the receipt.

asking for tax advise and i inform them I am the last person so give any type of tax advise I

would recommend going to see a tax professional.

consider other approaches. I feel like if they do this and keep up with the times and the

technology it is important. I am sure that the Fair Tax Act and those alike benefit a certain tax

group and will always do so. I believe that taxes should be based on the income being

brought to the table. "[The Fair Tax Act] would allow the nation’s wealthiest families to

accumulate even greater intergenerational wealth, thereby widening the nation’s already

sizable wealth gap" (Ross 2023 p2). I believe this statement right here and the "plan"

congress has on making this a thing is very unfair to the people that work day in and day out

A good explanation and introduction from my federal taxation of individuals class were the

words from Benjamin Franklin: “Nothing is certain except death and taxes”. The two

inevitable things in life that we are not able to avoid. Not even leaving the country, talking

about the taxes, because our tax law is based on territory. According to the IRS, “If you are

a U.S. citizen or resident alien, the rules for filing income, estate, and gift tax returns and

paying estimated tax are generally the same whether you are in the United States or abroad.

You are subject to tax on worldwide income from all sources and must report all taxable

income and pay taxes according to the Internal Revenue Code”. z Anyways, I have learned a

lot from this class about the other side of the coin, the federal income tax of corporations and

a federal value-added tax. z This plan is trying to find a balance but even though it is targeting

poverty, it is my opinion that there will always be a sector trying to get the advantage of the

system. After the pandemic, getting the task force has been difficult for some companies

because many people realized that “teleworking” and passive income were ways to manage

their own lives instead of being ruled by a “schedule” or work for somebody else. As with

any other project, it has “ups and downs” or taking out and bringing new concerns to the

table. When many people believe that our tax regulations are favored by some and not

others, poverty is not going to be eradicated by facilitating monthly checks or providing

advanced tax refunds. It has to be more educational and work on the problem with the

resources we have on our hands. z

meal, high medical expenses, food, or a roof over their heads (regardless of their past

transgressions). however, I think for this to happen, laws would need to be written to make it

so the funds are used correctly and not for other interests.

However, there is a concern about those who are already struggling to provide basic

necessities and the implementation of a VAT. as a VAT is a tax universally applied, it would

be applicable to those who struggle. without raising taxes on the wealthy, this could

potentially create further wealth inequalities (Investopiedia team, 2022). this could be viewed

as a regressive tax so if it's implemented in the US, a tax on those who are very wealthy

should also be implemented in tandem. The current tax system works well for the current

and corporate income tax…” (114th Congress, H.R.25 – FairTax Act of 2015). In my opinion,

this may discourage spending, and overall put more burden on lower income families’

lifestyle. Furthermore, discouraging spending may harm the overall economy. This creates a

vicious cycle of low spending, unstable economy, and deficit tax revenues. However, I do

think that there are certain amendments to the Fair Tax Act of 2015 that may make it work

better.

Although I have a strong background in business taxation compared to some, I did learn a lot

in this class. Liquidations were something that I always wanted to learn more about. I deal

with them sometimes but on a smaller scale. z I was happy that we dealt a lot with basis and

liquidations. I think this will be valuable for me in the future and in my career. For me, I am

so used to dealing with taxation on a daily basis it is hard for me to even consider an