CH_1_QUESTIONS - Income Tax I-Chapter 1 Questions Name...

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Income Tax I-Chapter 1 Questions Name ___Christian Yimgnia_________ Answer and/or discuss the following based on reading the text and viewing the power points. Each question is worth 5 points. Be thorough and complete with your answers. 1. Discuss economic factors Congress considers when enacting tax law. Congress creates tax laws that stimulate the economy, encourage capital investment, or direct resources to selected business activities. For example the investment tax credit has been suspended to encourage individuals to use credit for investing. Another provision of the tax law is the depreciation write-offs that generated tax benefits from the accelerated cost recovery methods of depreciation. Other tax benefits to the economic or businesses are provisions for the percentage depletion, or tax benefits related to partnerships or S corporations. 2. Discuss social factors of the tax code Tax provisions are also affected by social factors. For example premiums paid by an employer on group term insurance plans are not treated as additional compensation to the employees. Another one is the deferral of social compensation which allows a
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This note was uploaded on 09/15/2011 for the course INCOME TAX 4404 taught by Professor Bulie during the Spring '11 term at University of Minnesota Duluth.

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CH_1_QUESTIONS - Income Tax I-Chapter 1 Questions Name...

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