Questions from General Taxation

Q: Marco and Cynthia have decided to go into business together. They

Marco and Cynthia have decided to go into business together. They will operate a burrito delivery business. They expect to have a loss in the first and second years of the business and subsequently ex...

Q: Ashley runs a small business in Boulder, Colorado, that makes

Ashley runs a small business in Boulder, Colorado, that makes snow skis. She expects the business to grow substantially over the next three years. Because she is concerned about product liability and...

Q: Mauve Supplies, Inc., reports total income of $120,

Mauve Supplies, Inc., reports total income of $120,000. The corporation’s taxable income is $105,000. What are Mauve’s marginal, average, and effective tax rates?

Q: Franklin County is in dire financial straits and is considering a number

Franklin County is in dire financial straits and is considering a number of sources for additional revenue. Evaluate the following possibilities in terms of anticipated taxpayer compliance. a. A prope...

Q: Discuss the probable justification for each of the following provisions of the

Discuss the probable justification for each of the following provisions of the tax law. a. A tax credit allowed for electricity produced from renewable sources. b. A tax credit allowed for the purchas...

Q: Discuss the probable justification for each of the following aspects of the

Discuss the probable justification for each of the following aspects of the tax law. a. A tax credit is allowed for amounts spent to furnish care for minor children while the parent works. b. Deducti...

Q: Contrast a value added tax (VAT) with a national sales

Contrast a value added tax (VAT) with a national sales tax in terms of anticipated taxpayer compliance.

Q: Go to www.taxfoundation.org, and determine Tax Freedom

Go to www.taxfoundation.org, and determine Tax Freedom Day for your state for 1950, 1960, 1970, 1980, 1990, 2000, and 2010. Report your results as a line graph.

Q: In terms of Adam Smith’s canon of economy, how does the

In terms of Adam Smith’s canon of economy, how does the Federal income tax fare?

Q: Describe the material that is found in Subtitle E of the Code

Describe the material that is found in Subtitle E of the Code. Would you expect these provisions not to be addressed anywhere else in the Code? Explain.