tax_benefit_from_QPAD - Years Potential deduction Taxable...

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Potential tax benefit from the domestic production activities deduction or “Just repeal Sec. 199 & lower corporate tax rates” For a corporate taxpayer with $1M in taxable income and QPAI that derives all of its revenue from qualified production activities performed within the U.S., the benefit would be calculated as follows (assuming no limitation otherwise applies):
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Unformatted text preview: Years Potential deduction Taxable income after deduction Income tax Savings Effective rate 1 2005-2006 $30,000 (3% x $1M) $970,000 $329,800 (970,000 x 34%) $10,200 32.98% 2007-2009 $60,000 (6% x $1M) $940,000 $319,600 (940,000 x 34%) $20,400 31.96% After 2009 $90,000 (9% x $1M) $910,000 $309,400 (910,000 x 34%) $30,600 30.94% Note 1 : Income tax / $1M taxable income....
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This note was uploaded on 09/09/2011 for the course TAX 6845 taught by Professor Kelliher,c during the Fall '08 term at University of Central Florida.

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