Reference no: EM131301941
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.
|
Dow jones industrial average
: The DJIA (Dow Jones Industrial Average) is a price weighted index consisting of thirty bluechip company stocks. AAPL, GE, and MMM etc. are all components of the DJIA. Year to date, the DJIA has dropped by 10%. Assume that there is no change in the DJ..
|
|
Even though most corporate bonds
: Even though most corporate bonds in the United States make coupon payments semiannually, bonds issued elsewhere often have annual coupon payments. Suppose a German company issues a bond with a par value of €1,000, 10 years to maturity, and a coupon r..
|
|
Brokerage account at same time with same brokerage firrm
: You and your friend opened a brokerage account at the same time with the same brokerage firm a year ago. At that time, each of you bought $10, 000 worth of shares of XYZ stock on margin. However, out of $10, 000 each of you needed for your initial pu..
|
|
The firm has a target debt-equity ratio
: Scanlin, Inc., is considering a project that will result in initial aftertax cash savings of $1.83 million at the end of the first year, and these savings will grow at a rate of 2 percent per year indefinitely. The firm has a target debt−equity ratio..
|
|
The pros and cons of current rules on corporate taxation
: 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. The actual amounts corporation..
|
|
Explain strategic plan contains elements of all components
: The Strategic Plan contains the elements of all the previous weeks' components and incorporates instructor feedback. The strategic recommendations will be evaluated and the best options chosen for recommendation.
|
|
Discuss three features of real property
: Discuss three features of real property that introduce special challenges for the orderly transfer of ownership. As a hint, one of these is that real property interests can be very complex. What are two others
|
|
Briefly describe a contingency plan for alternative actions
: Briefly describe a contingency plan for alternative actions - Appendix A. Biographical Sketches of Key Personnel and Various appendices may appear at the end of the plan, depending on the plan's purpose and audience.
|
|
Did briana aguirre act ethically in going public
: In your opinion, did Briana Aguirre act ethically or unethically in going public with this information? Should she be fired from the Texas Presbyterian hospital? Support or challenge Briana Aguirre's decision to go public with this information.
|