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Home work chapter 1& 3

Home work chapter 1& 3 - Interest on Bond(Panda...

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Tasyann Phillips Acc 307 Both a value added tax (VAT) and a national sale tax have been criticized as being regressive in  their effect. (A) Explain Both taxes are regressive in the sense that it doesn’t collect as much tax as the federal  income tax.  Also it is a burned on the poor to pay the same or greater proportion of their  income compare to the rich. Furthermore, both taxes are bas on consumption and since  the lower income family spends more than the rich they will be paying higher taxes.  It will also be regressive in the sense that the IRS will have a tougher time making sure  that business pay the proper sales taxes. (B) How could this short coming be remedied in the case of national sales tax? It is proposed that this could be remedies by offering some sort of credit, rebate or  exemption to low income taxpayers.
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Salary                                                                           70,000
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Unformatted text preview: Interest on Bond (Panda Corporation) 4,000 Interest on CD (PNC Bank) 3,000 Cash Dividend (GE Common Stock) 1,200 Gross Income $78,200 Less Standard deduction (8,350) Less Personal &Dependent Exemption) (14,600) 3650*4 Taxable income $14,600 Note: Excluded nontaxable income Life insurance Proceed $50,000 Inheritance received on death of aunt $300,000...
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