1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
beks73 [17]
3 years ago
6

What factors make tax rules so complicated?

Business
1 answer:
Alik [6]3 years ago
8 0

Answer:

Hello!!! erz here ^^

Explanation:

Almost everyone agrees that the current tax system is too complicated, yet almost every year the system gets more complex, not less. Why? Tax simplicity almost always conflicts with other policy goals.

For example, the simplest—and least distorting—tax is a head tax, a fixed-dollar tax on everyone. But a head tax would be unfair, taking no account of differences in the incomes and needs of individuals, families, and businesses.

Most people believe taxes should be fair, conducive to economic prosperity, and enforceable, as well as simple. But even people who agree on these goals often disagree about the relative importance of each. As a result, policies usually represent a balance among competing goals, and simplicity often loses out to other priorities.

For example, most countries tailor tax burdens to individual taxpayers’ characteristics. That can make taxes fairer, but more complex. Income has to be traced from businesses to individuals. Individual characteristics such as marital status and number of dependents, as well as the composition of expenditures or income, have to be reported and documented. These conflicting objectives appear to be especially relevant in the current tax code, where the desire to reduce tax burdens for particular groups have added significant complexity.

Politics compounds the complexity. Interest groups—and thus politicians—support tax subsidies for particular activities. And these targeted subsidies inevitably complicate the tax system by creating distinctions among taxpayers with different sources and uses of income.

The current tax law was not enacted all at once but is a result of numerous provisions added or subtracted in multiple tax bills. Often Congress designs legislation under self-imposed constraints, such as short-term revenue goals or effects on the distribution of tax burdens among income groups. The result is that tax incentives are often designed in complex ways to limit the revenue losses or benefits to high-income taxpayers or to prevent their use by unintended beneficiaries.

Annual reports by the National Taxpayer Advocate have presented proposals for simplifying the tax code, including reforms of education incentives, retirement incentives, child benefits, and the alternative minimum tax.

You might be interested in
Hot and Cold Corp. makes disposable coffee and soft drink cups for use in fast-food restaurants, hospitals, convenience stores,
schepotkina [342]

Answer:

Star in BCG matrix

Explanation:

BCG matrix is a system that helps the organization to decide on product sales, investment, etc. In BCG matrix, the product is divided into four types: dog, cash cows, stars and question marks.  

stars - it is the type of product that makes high market share and growth. These produced large income but also require high investment

7 0
3 years ago
A ________ is an individual or organization who seeks out opportunities to improve society by using practical, innovative, and s
gtnhenbr [62]

Answer:

The correct answer is letter "B": social entrepreneur.

Explanation:

Social entrepreneurs are people interested in going into ventures not necessarily to generate revenue but for making a good to their societies. Their organizational activities mainly focus on providing pollution-free goods or acting as a philanthropic entity. These institutions have a high corporate social responsibility that aims to last over long periods.

8 0
3 years ago
Drewson Health Foods has 16 comma 000 shares of $ 1 par common stock​ outstanding, which were issued at $ 15 per share. Drewson
earnstyle [38]

Answer:

SE 157,000

Explanation:

We do shares outstanding times issued per share to get the total paid-in capital. Then subtract the retained earnigns negative balance to get the Drewson total stockholders equity

16,000 \times 15 = 240,000 \\Retained \: Earnings \: (83,000) \\Stockholders \: Equity \: 157,000

7 0
3 years ago
Maxim County just completed construction of a new town hall to be used for its governmental offices. The employees have moved in
Svet_ta [14]

Answer:

The answers are:

B) Transfer the remaining funds to the debt service fund which will be handling the long-term debt incurred for the construction of the building.

C) Return the excess to the source of the restricted funding.

Explanation:

The fund balance of $12,000, means that the money left over was $12,000. When a government entity's project has a left over or excess, called surplus, it must first return it to the debt service fund.

At the end of the construction project if any money is left over, it must be returned to the source of the restricted funding.  

5 0
3 years ago
Scott consumes only two goods, rice and soup. His preferences are complete, transitive, monotonic and convex. When the price of
BaLLatris [955]

Answer:E(none of the above)

Explanation:

3 0
3 years ago
Other questions:
  • The rising popularity of bubble and squeak as a breakfast item on the menu has resulted in a steady demand for peas. Over the co
    12·1 answer
  • Gross domestic product
    13·1 answer
  • According to a summary of the payroll of Scotland Company, total salaries were $500,000. Assume that social security taxes are p
    9·1 answer
  • You borrow $230,000 to buy a house. The mortgage rate is 4.5 percent and the loan period is 25 years. Payments are made monthly.
    12·2 answers
  • 1. Explain interpersonal skills in your own words
    11·1 answer
  • BlackHawk anticipates paying a dividend of $4.25 next year and is expected to grow the dividend at a constant rate of 7% per yea
    8·1 answer
  • A call provision in a bond...A. Limits the actions of the borrower.B. Protects the borrower from unscrupulous practices by the l
    13·1 answer
  • Katsumi applied for a credit card with a limit of $1,000. When the application was approved, Katsumi bought a new CD player and
    9·1 answer
  • Comfy Fit Company manufactures two types of university sweatshirts, the Swoop and the Rufus, with unit contribution margins of $
    6·1 answer
  • A company faces two kinds of risk. An example of a firm-specific risk is the risk that a competitor might enter its market and t
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!