Tax Impact of Tesla Inc.docx - Running head TAX IMPACT OF TESLA INC Tax Impact of Tesla Inc Name Institution Affiliate Course Date Page |1 TAX IMPACT OF

Tax Impact of Tesla Inc.docx - Running head TAX IMPACT OF...

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Running head: TAX IMPACT OF TESLA, INC P a g e | 1 Tax Impact of Tesla Inc. Name Institution Affiliate Course Date
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TAX IMPACT OF TESLA, INC. P a g e | 2 Introduction The government plays a significant role in economy, some of the function include; offering security to people and property, providing a suitable infrastructure such as road and energy, and control the prices when needed. In return the business and individual are supposed to pay tax which in most cases is compulsory contribution to state revenue. The tax is supposed to be levied from profits derived from goods and services offered by the company or individual. In the united states the companies are supposed to pay 21% of their net profit. The tax rate was reduced in 2017 from 35% after Tax Cuts, and Jobs Cuts Acts was enacted. Before Tax Cuts and Jobs Cuts Acts was implemented companies were struggling to be profitable since bigger percentage of their income was used to service tax liability. After the Act was signed into law on December 22, 2017 businesses have been recording good bottom line due to reduced tax liability. Besides, the stock prices have gone high due to increased Earning Per Share (EPS) that derive the growth of stock prices. In this paper we are going to discuss how different areas that have a significant impact on Tesla Tax liability. Profile Tesla, Inc. Tesla, Inc. is one of the leading companies that design, manufacture, distribute and market fully electric cars. Also, the company offers energy generation and storages systems to clients spread across the worlds. The company was founded in 2003, by Marc Tarpenning and Martin Eberhard. On June 29, 2010 the company went public with an initial public offering (IPO) priced at $17 per share. The company is of tax interest since the government has provided green companies with tax incentive that have a significant effect on the company bottom line.
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TAX IMPACT OF TESLA, INC. P a g e | 3 In the second quarter of this year, Tesla tax credit for buyer increased by 50%, and it is expected to be eliminated in 2020. The increase of tax credit to the buyer makes Tesla car less expensive since the buyers are able to enjoy tax saving.
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  • Spring '17
  • HERICK ONDIGO

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