Do you agree with the proponents of the exclusion

Assignment Help Taxation
Reference no: EM13494834

The exclusion of state and local bond interest from Federal income tax often is criticized as creating a tax haven for the wealthy. Critics, however, often fail to take into account the effect of market forces. In recent months, the long-term tax-exempt interest rate has been 3.15%, while the long-term taxable rate for bonds of comparable risk was approximately 4.4%. On the other hand, state and local governments do enjoy a savings in interest costs because of the tax-favored status of their bonds.

To date, Congress has concluded that the benefits gained by the states and municipalities and their residents, such as access to capital and the creation of jobs to construct and maintain critical infrastructure, outweigh any damages to our progressive income tax system.

Do you agree with the proponents of the exclusion? Why or why not? Are there legal and ethical ramifications that we need to consider? Make sure you back up you discussion with research.

Reference no: EM13494834

Questions Cloud

Technological change to the employment relationship : From the scenario propose two adjustments that you as a HR manager can make to support the changes related to high performance work systems technological change to the employment relationship
What are the principal limitations of the cash payback : Why is one product line preferred over the other, even though they both have the same total net cash flows through eight periods?
How far horizontally does the particle travel : A particle with a mass of 1.5×10?5 kg and a charge of +2.8 microC is released in a (parallel plate) uniform horizontal electric field of 15 N/C. How far horizontally does the particle travel in 0.60s
Explain the meaning of internal environment : Explain the meaning of internal environment. What are the tools available to managers for matching the internal environment with the external environment?
Do you agree with the proponents of the exclusion : Do you agree with the proponents of the exclusion? Why or why not? Are there legal and ethical ramifications that we need to consider? Make sure you back up you discussion with research.
Hathaway has done enough to prepare for succession : Do you think Berkshire Hathaway has done enough to prepare for succession, or should they have started preparing much earlier?
What is the force between the wires due to the currents : Two 3 cm long parallel wires in a handheld calculator are 1 mm apart. The currents are in the same direction and have values 0.5 µA and 2.2 µA, respectively
Express statement on auditing standards : Reflect upon the three elements of the "Fraud Triangle". While it is understood that all three elements are important, select one and explain why it is the most important. Provide support for your rationale.
Find the attractive coulombic force between them : A proton is located at x = 1.0 nm, y = 0.0 nm and an electron is located at x = 0.0 nm, y = 4.0 nm. Find the attractive Coulombic force between them

Reviews

Write a Review

Taxation Questions & Answers

  Taxable income

Determine taxable income before considering expense.

  Prepare a tax research memo

Prepare a tax research memo to the file that addresses the issues you feel are most relevant to Mimi's various issures.

  Income by ordinary concepts

Explain what is meant by income by ordinary concepts

  Identify the tax issues

Identify the tax issues that are raised and the relevant sections of the legislation. Identify any cases and other sources of law or information that apply.

  Calculate carolines taxable income

Calculate Carolines taxable income

  Taxation – law and practice

Show the tax issues that are raised and the relevant sections of the legislation.

  Payment to the taxpayer

Brief statement in your own words of the facts of the cases.

  Prepare regular corporation tax return

Prepare the C Regular Corporation Tax Return for the Lawson And Norman Enterprise

  Taxation law

Advise the participants in the ‘barter' system of the income tax implications, if any, of participating in the system.

  A tax on cigarettes is a good way of raising tax revenue

Discuss- A tax on cigarettes is a good way of raising tax revenue for the government

  Prepare the required journal entry

Prepare the required journal entry to record the tax expense

  Calculate barbs taxable income

Calculate Barb's taxable income? What nonrefundable credit is Barb eligible for based on the information you have?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd