LESON24B

LESON24B - three tiered rate 1991 15(50,000 25(75,000...

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Econ 275 - Public Finance - Winter 1994 - 3/31/94 - Lesson #24 - leson24b.275-- Page -- Admin: Tuesday: Begin presentations Presentations are due Please be on time as a courtesy to the presenters Order of groups for tuesday Medicaid WIC Social Security Head Start AFDC Order for Thursday CIA NASA Mental Health Super (301) Postal Service Handouts on personal income tax. See leson24b.wb1 - make a handout. Corporate Tax Discuss definition of a corporation Specific form of business organization Owned by stockholders Independent legal entities: artificial legal persons may make contracts incur debts sue and be sued must pay corporate income tax Limited liability Stats 1950 - 27.9 % of all federal tax collections 1990 - 9.1% Why tax corporations? Only people can bear the burden of taxation: shareholders, consumers, workers
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Unformatted text preview: three tiered rate: 1991: 15%(50,000), 25 (75,000), 34 (75,000+). Now slightly higher. Structure: tax on profits Revenues Costs wages Printed: Econ 275 - Public Finance - Winter 1994 - 3/31/94 - Lesson #24 - leson24b.275-- Page --interest depreciation example: trucking company purchases rig for 100,000. It will be using the truck for 5 years. Alternatives depreciation schedules full depreciation in first year. 100,000 less in taxable profits in first year. 34% bracket implies that profits go up by 34,000 Double taxation of dividends. Taxed at corporate rate, taxed as individual income. Why do firms pay dividends. It's giving money to the tax collector. 60 percent of after tax profits payed out in dividends. Printed:...
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This note was uploaded on 07/08/2010 for the course ECON 275 taught by Professor Mcintyre during the Winter '05 term at BYU.

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LESON24B - three tiered rate 1991 15(50,000 25(75,000...

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