Reference no: EM131264850
Reduction of Corporate Income Taxes
Although reduction of individual taxes is often encouraged, there is great controversy over reduction of corporate income taxes. Every April, you can find news stories about corporations that don’t pay any income taxes. For example, in 2014, CBS Corporation paid no income taxes to the U.S. government despite having a net income of $1.8 billion. Time Warner, Inc., Prudential Financial, Inc., and QUALCOMM, Inc., did not pay any income taxes in 2014 either, despite each having net incomes in the billions (Clarke 2015). Many critics believe that if all profitable corporations shouldered more of the burden of taxes, then the government could avoid deficits and provide more services. This poses the question: Is it ethical for corporations to try to reduce or eliminate their taxes? Consider the obligations major corporations have to their country/society and think about whether corporations should have tax shelters offered to them just as individual taxpayers do.
Search the Internet for current articles (within the last 3 years) on the following topics:
The actual amounts corporations have paid in federal taxes
The ethical, political, and social issues with regard to reducing corporate taxation
The pros and cons of current rules on corporate taxation
Please note that authors can have strong and polarizing positions on this issue, as well as opinions that may not be grounded in research and evidence. As you research, get acquainted with the varied positions on these topics and be respectful of positions that might differ from your own.
With these thoughts in mind:
Post an evaluation of the implications of ethical and social issues associated with reduction of corporate taxes. Provide your opinion on how the loss of these tax revenues will impact the country/society, using General Electric, Wells Fargo, or other corporations as an example to support your evaluation.
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Balances for income from continuing operations-pretax gains
: Gerogi Company had the following balances for income from continuing operations and pretax gains and losses on December? 31: The? company's effective tax rate is? 40%. What amount should Gerogi Company report as comprehensive income for the year ende..
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What is difference in how we account for prior service cost
: What is the difference in how we account for prior service cost (called past service cost under IFRS) under IAS No. 19 and U.S. GAAP? What is the difference in how we account for gains and losses under IAS No. 19 and U.S. GAAP?
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Defined benefit pension plan
: Brit has a defined benefit pension plan. Characteristics of the plan during 2016 are as follows: Calculate the three components of net pension cost for 2016, indicating how they are reported in the income statement. What amount will Brit report in it..
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Company sells fixed asset
: A company sells a fixed asset (equipment) for $30,000. The asset originally cost $80,000 and had accumulated depreciation of $55,000 at the time of the sale. Select the journal entry to recognize the sale. Debit Cash $30,000 Debit Accumulated Depreci..
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Reduction of corporate income taxes
: Although reduction of individual taxes is often encouraged, there is great controversy over reduction of corporate income taxes. Every April, you can find news stories about corporations that don’t pay any income taxes. Post an evaluation of the impl..
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Use high-low costing method-what is variable cost per hour
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What is the value for the fixed quantity
: Williams Inc. produces fluorescent lightbulbs for commercial use. The accounting manager is attempting to estimate the total cost for the next quarter using the high-low method. He has compiled data and found the high and low costs are $65,000 and $3..
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What are the journal entries to record the sales
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Determine the tax consequences to vic
: Vic, who was experiencing financial difficulties, was able to adjust his debts as follows: Vic is an attorney. Vic owed his uncle $25,000. The uncle told Vic that if he serves as the executor of the uncle’s estate, Vic’s debt will be canceled in the ..
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