Reference no: EM131045778

Question 1

Taxpayers in the United States pay income tax based on progressive tax rates, that is, as taxable income increases, the tax rate on the additional income will also increase. Discussion of a flat tax on income periodically arises, typically, in election cycles.

Discuss whether or not you think that an income tax system that uses a flat tax rather than a progressive tax will mean a fairer and more equitable tax system for all taxpayers? Be sure to thoroughly explain your position.

Using the Internet put together a list of proponent's and opponent's reasons for supporting a flat tax.

Question 2

Read the following scenario, and use the information to help you answer the discussion questions that follow:

Scenario:

You are a newly elected County Auditor. As part of your new position, you now control a 30 million dollar budget for the county. Before any claim can be submitted to the county commissioners for payment, it is your responsibility to review and approve the claim.

In the first batch of claims you receive, there are expenditures for a Christmas Party given to employees of the Road Department. The expenditures were not approved by you, but were approved by the previous auditor. Hence, the payment was authorized by the County Commissioners.

Hint: Keep in mind that all county funds are taxpayer's dollars.

Based on the scenario above, what would you do? Ethically, do you feel you should abide by the approval? Would you just make the payment? Explain your reasoning.

Question 3

If risk wasn't sufficiently rewarded do you believe investors would still invest? Please explain. How does expanding one's "portfolio" potentially reduce risk?