Accounting 307 Federal Taxation
Assignment 1: Should the U.S. Convert to a Zero Personal Income Tax?
Due Week 7 and worth 280 points
In a recent news article located athttp://www.nbcnews.com/business/economy/heres-where-your-federal-income-tax-dollars-go-f654971, NBC News reported that the U.S. Government spends $3.6 trillion per year to fund Social Security, Medicare, homeland defense and safety, education, transportation, and the interest on debt obligations. In spite of the services and benefits that the government provides, many taxpayers dread paying income taxes but consider them a necessary evil. Consequently, there is much debate about the inequities contained within the tax code, due to tax shelters and tax credits provided to some taxpayers which thereby increase the tax burden on others.
Using the Internet or Strayer Library, research at least two (2) countries that have a zero income tax rate.
Write a four to five (4-5) page paper in which you:
- Analyze the way in which the two (2) countries that you have researched provide services and benefits to its citizens without collecting personal income taxes.
- For the countries that you have chosen, determine whether or not the U.S. could adopt their taxation model without reducing its total amount of revenue generated by collecting personal income taxes from individuals and business. Justify your response.
- Suggest at least three (3) advantages and three (3) disadvantages of the U.S. adopting a zero income tax model. Provide a rationale for your response.
- Create a proposal for where the revenue would be derived if the U.S. were to adopt a zero income tax model. In your response, provide specific recommendations concerning the following:
- The proposed tax base.
- Whether or not tax payers at certain income levels should be exempt from taxation.
- The primary way in which the IRS would calculate the tax rate in order to ensure that the same level of tax revenue would still be collected.
- The primary way in which your plan will achieve equity.
- Speculate on the primary way in which the federal government could make up any shortfalls if it does not collect its targeted revenue from personal income taxes, and ascertain the most significant way in which the U.S. Department of the Treasury, through the IRS, can still adhere to its fiscal and monetary policies. Justify your response.
- Use at least four (4) quality academic resources in this assignment. Note: Wikipedia and other Websites do not quality as academic resources.
Your assignment must follow these formatting requirements:
- Be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides; citations and references must follow APA or school-specific format. Check with your professor for any additional instructions.
- Include a cover page containing the title of the assignment, the student’s name, the professor’s name, the course title, and the date. The cover page and the reference page are not included in the required assignment page length.
The specific course learning outcomes associated with this assignment are:
· Examine the types of taxes imposed at the federal, state, and local levels; the federal tax formula; and the rules for arriving at personal and dependency exemptions.
· Analyze the concepts of gross income and distinguish between the economic, accounting, and tax concepts of gross income and strategies to minimize gross income, maximize deductions, and minimize disallowance of deductions
· Use technology and information resources to research issues in federal taxation.
· Write clearly and concisely about federal taxation using proper writing mechanics.
Grading for this assignment will be based on answer quality, logic / organization of the paper, and language and writing skills, using the following rubric.
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Points: 280 |
Assignment 1:Should the U.S. Convert to a Zero Personal Income Tax? |
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Criteria |
Unacceptable Below 60% F |
Meets Minimum Expectations 60-69% D |
Fair 70-79% C |
Proficient 80-89% B |
Exemplary 90-100% A |
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1. Analyze the way in which the two (2) countries that you have researched provide services and benefits to its citizens without collecting personal income taxes. Weight: 10% |
Did not submit or incompletely analyzedthe way in which the two (2) countries that you have researched provide services and benefits to its citizens without collecting personal income taxes. |
Insufficiently analyzedthe way in which the two (2) countries that you have researched provide services and benefits to its citizens without collecting personal income taxes. |
Partially analyzedthe way in which the two (2) countries that you have researched provide services and benefits to its citizens without collecting personal income taxes. |
Satisfactorily analyzedthe way in which the two (2) countries that you have researched provide services and benefits to its citizens without collecting personal income taxes. |
Thoroughly analyzedthe way in which the two (2) countries that you have researched provide services and benefits to its citizens without collecting personal income taxes. |
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2.
For the countries that you have chosen, determine
whether or not the U.S. could adopt their taxation model without reducing its
total amount of revenue generated by collecting personal income taxes from
individuals and business. Justify your response. |
Did not submit or incompletely determinedwhether or not the U.S. could adopt their taxation model without reducing its total amount of revenue generated by collecting personal income taxes from individuals and business for the countries that you have chosen. Did not submit or incompletely justified your response. |
Insufficiently determinedwhether or not the U.S. could adopt their taxation model without reducing its total amount of revenue generated by collecting personal income taxes from individuals and business for the countries that you have chosen.Insufficientlyjustified your response. |
Partially determinedwhether or not the U.S. could adopt their taxation model without reducing its total amount of revenue generated by collecting personal income taxes from individuals and business for the countries that you have chosen.Partiallyjustified your response. |
Satisfactorily determinedwhether or not the U.S. could adopt their taxation model without reducing its total amount of revenue generated by collecting personal income taxes from individuals and business for the countries that you have chosen.Satisfactorilyjustified your response. |
Thoroughly determinedwhether or not the U.S. could adopt their taxation model without reducing its total amount of revenue generated by collecting personal income taxes from individuals and business for the countries that you have chosen.Thoroughlyjustified your response. |
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3. Suggest at least three (3) advantages and three (3) disadvantages of the U.S. adopting a zero income tax model. Provide a rationale for your response. Weight: 15% |
Did not submit or incompletely suggestedat least three (3) advantages and three (3) disadvantages of the U.S. adopting a zero income tax model. Did not submit or incompletely provided a rationale for your response. |
Insufficiently suggestedat least three (3) advantages and three (3) disadvantages of the U.S. adopting a zero income tax model.Insufficientlyprovided a rationale for your response. |
Partially suggestedat least three (3) advantages and three (3) disadvantages of the U.S. adopting a zero income tax model.Partiallyprovided a rationale for your response. |
Satisfactorily suggestedat least three (3) advantages and three (3) disadvantages of the U.S. adopting a zero income tax model.Satisfactorilyprovided a rationale for your response. |
Thoroughly suggestedat least three (3) advantages and three (3) disadvantages of the U.S. adopting a zero income tax model.Thoroughlyprovided a rationale for your response. |
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4a. Create a proposal for where the revenue would be derived if the U.S. were to adopt a zero income tax model. In your response, provide specific recommendations concerning the proposed tax base. Weight: 5% |
Did not submit or incompletely createda proposal for where the revenue would be derived if the U.S. were to adopt a zero income tax model. Did not submit or incompletely provided specific recommendations concerning the proposed tax base. |
Insufficiently createda proposal for where the revenue would be derived if the U.S. were to adopt a zero income tax model.Insufficientlyprovided specific recommendations concerning the proposed tax base. |
Partially createda proposal for where the revenue would be derived if the U.S. were to adopt a zero income tax model.Partiallyprovided specific recommendations concerning the proposed tax base. |
Satisfactorily createda proposal for where the revenue would be derived if the U.S. were to adopt a zero income tax model.Satisfactorilyprovided specific recommendations concerning the proposed tax base. |
Thoroughly createda proposal for where the revenue would be derived if the U.S. were to adopt a zero income tax model.Thoroughlyprovided specific recommendations concerning the proposed tax base. |
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4b. Create a proposal for where the revenue would be derived if the U.S. were to adopt a zero income tax model. In your response, provide specific recommendations concerning whether or not tax payers at certain income levels should be exempt from taxation. Weight: 5% |
Did not submit or incompletely createda proposal for where the revenue would be derived if the U.S. were to adopt a zero income tax model. Did not submit or incompletely provided specific recommendations concerning whether or not tax payers at certain income levels should be exempt from taxation. |
Insufficiently createda proposal for where the revenue would be derived if the U.S. were to adopt a zero income tax model.Insufficientlyprovided specific recommendations concerning whether or not tax payers at certain income levels should be exempt from taxation. |
Partially createda proposal for where the revenue would be derived if the U.S. were to adopt a zero income tax model.Partiallyprovided specific recommendations concerning whether or not tax payers at certain income levels should be exempt from taxation. |
Satisfactorily createda proposal for where the revenue would be derived if the U.S. were to adopt a zero income tax model.Satisfactorilyprovided specific recommendations concerning whether or not tax payers at certain income levels should be exempt from taxation. |
Thoroughly createda proposal for where the revenue would be derived if the U.S. were to adopt a zero income tax model.Thoroughlyprovided specific recommendations concerning whether or not tax payers at certain income levels should be exempt from taxation. |
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4c. Create a proposal for where the revenue would be derived if the U.S. were to adopt a zero income tax model. In your response, provide specific recommendations concerning the primary way in which the IRS would calculate the tax rate in order to ensure that the same level of tax revenue would still be collected. Weight: 5% |
Did not submit or incompletely createda proposal for where the revenue would be derived if the U.S. were to adopt a zero income tax model. Did not submit or incompletely provided specific recommendations concerning the primary way in which the IRS would calculate the tax rate in order to ensure that the same level of tax revenue would still be collected. |
Insufficiently createda proposal for where the revenue would be derived if the U.S. were to adopt a zero income tax model.Insufficientlyprovided specific recommendations concerning the primary way in which the IRS would calculate the tax rate in order to ensure that the same level of tax revenue would still be collected. |
Partially createda proposal for where the revenue would be derived if the U.S. were to adopt a zero income tax model.Partiallyprovided specific recommendations concerning the primary way in which the IRS would calculate the tax rate in order to ensure that the same level of tax revenue would still be collected. |
Satisfactorily createda proposal for where the revenue would be derived if the U.S. were to adopt a zero income tax model.Satisfactorilyprovided specific recommendations concerning the primary way in which the IRS would calculate the tax rate in order to ensure that the same level of tax revenue would still be collected. |
Thoroughly createda proposal for where the revenue would be derived if the U.S. were to adopt a zero income tax model.Thoroughlyprovided specific recommendations concerning the primary way in which the IRS would calculate the tax rate in order to ensure that the same level of tax revenue would still be collected. |
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4d. Create a proposal for where the revenue would be derived if the U.S. were to adopt a zero income tax model. In your response, provide specific recommendations concerning the primary way in which your plan will achieve equity. Weight: 5% |
Did not submit or incompletely createda proposal for where the revenue would be derived if the U.S. were to adopt a zero income tax model. Did not submit or incompletely provided specific recommendations concerning the primary way in which your plan will achieve equity. |
Insufficiently createda proposal for where the revenue would be derived if the U.S. were to adopt a zero income tax model.Insufficientlyprovided specific recommendations concerning the primary way in which your plan will achieve equity. |
Partially createda proposal for where the revenue would be derived if the U.S. were to adopt a zero income tax model.Partiallyprovided specific recommendations concerning the primary way in which your plan will achieve equity. |
Satisfactorily createda proposal for where the revenue would be derived if the U.S. were to adopt a zero income tax model.Satisfactorilyprovided specific recommendations concerning the primary way in which your plan will achieve equity. |
Thoroughly createda proposal for where the revenue would be derived if the U.S. were to adopt a zero income tax model.Thoroughlyprovided specific recommendations concerning the primary way in which your plan will achieve equity. |
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5. Speculate on the primary way in which the federal government could make up any shortfalls if it does not collect its targeted revenue from personal income taxes, and ascertain the most significant way in which the U.S. Department of the Treasury, through the IRS, can still adhere to its fiscal and monetary policies. Justify your response. Weight: 15% |
Did not submit or incompletely speculatedon the primary way in which the federal government could make up any shortfalls if it does not collect its targeted revenue from personal income taxes; did not submit or incompletely ascertained the most significant way in which the U.S. Department of the Treasury, through the IRS, can still adhere to its fiscal and monetary policies. Did not submit or incompletely justified your response. |
Insufficiently speculatedon the primary way in which the federal government could make up any shortfalls if it does not collect its targeted revenue from personal income taxes; insufficiently ascertained the most significant way in which the U.S. Department of the Treasury, through the IRS, can still adhere to its fiscal and monetary policies. Insufficiently justified your response. |
Partially speculatedon the primary way in which the federal government could make up any shortfalls if it does not collect its targeted revenue from personal income taxes; partially ascertained the most significant way in which the U.S. Department of the Treasury, through the IRS, can still adhere to its fiscal and monetary policies. Partially justified your response. |
Satisfactorily speculatedon the primary way in which the federal government could make up any shortfalls if it does not collect its targeted revenue from personal income taxes; satisfactorily ascertained the most significant way in which the U.S. Department of the Treasury, through the IRS, can still adhere to its fiscal and monetary policies. Satisfactorily justified your response. |
Thoroughly speculatedon the primary way in which the federal government could make up any shortfalls if it does not collect its targeted revenue from personal income taxes; thoroughly ascertained the most significant way in which the U.S. Department of the Treasury, through the IRS, can still adhere to its fiscal and monetary policies. Thoroughly justified your response. |
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6. 4 references Weight: 5% |
No references provided |
Does not meet the required number of references; all references poor quality choices. |
Does not meet the required number of references; some references poor quality choices. |
Meets number of required references; all references high quality choices. |
Exceeds number of required references; all references high quality choices. |
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7. Writing Mechanics, Grammar, and Formatting Weight: 15% |
Serious and persistent errors in grammar, spelling, punctuation, or formatting. |
Numerous errors in grammar, spelling, and punctuation. |
Partially free of errors in grammar, spelling, punctuation, or formatting. |
Mostly free of errors in grammar, spelling, punctuation, or formatting. |
Error free or almost error free grammar, spelling, punctuation, or formatting. |
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8. Appropriate use of APA in-text citations, reference section and format Weight: 5% |
Lack of in-text citations and / or lack of reference section. |
In-text citations and references are given, but not in APA format. |
In-text citations and references are provided, but they are only partially formatted correctly in APA style. |
Most in-text citations and references are provided, and they are generally formatted correctly in APA style. |
In-text citations and references are error free or almost error free and consistently formatted correctly in APA style. |
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Rating:
/5
Solution: Assignment 1: Should the U.S. Convert to a Zero Personal Income Tax?