Corporations employ individuals who are taxpayers

Assignment Help Financial Management

Reference no: EM131044699

Corporations employ individuals who are taxpayers. These individuals in turn pay tax on their wages. In addition, when corporations distribute profits to shareholders, these dividends are taxed. To encourage corporations to invest domestically, it has been argued by some that the United States should abolish the corporate income tax (or significantly reduce it). By so doing, corporations would be more inclined to invest in human and physical capital domestically. 1. What do you think of this tax policy idea? 2. Do you think it could encourage corporations to invest domestically? 3. What other policy issues could Congress consider to encourage domestic investments of physical and human capital? Provide specific details to support your opinions in your response.

Reference no: EM131044699

Questions Cloud

Calculate the present worth of cost : A business buys a vehicle for $6,000, uses it for 5 years, and salvages it for $1,000. The annual cost of operating the vehicle was $900. Maintenance costs are $200 for the first year and increase at a 8% annual compounded rate. The business uses an ..

What is the present worth of this investment : Nancy’s Notions pays a delivery firm to distribute its products in the metro area. Delivery costs are $30,000 per year. Nancy can buy a used truck for $12,000 that will be adequate for the next 5 years. Operating and maintenance costs are estimated t..

Estimated cash flows-calculate the net present value : A U.S. company is considering a project in Mexico. Estimated cash flows are 10 million Mexican pesos the first year and 20 million Mexican pesos the second year. The U.S. Company would incur a cost of $2 million at the start of the project, and its c..

Discuss australia monetary policy : Monetary Policy - Discuss Australia's Monetary policy during last 3 to 5 years. What are its affects and its problems on Australian Economy

Corporations employ individuals who are taxpayers : Corporations employ individuals who are taxpayers. These individuals in turn pay tax on their wages. In addition, when corporations distribute profits to shareholders, these dividends are taxed. What do you think of this tax policy idea? Do you think..

Student loans at an annual interest rate : While Mary Corens was a student at the University of Tennessee, she borrowed $12,000 in student loans at an annual interest rate of 8.80%. If Mary repays $1,500 per year, how long (rounded up to the nearest year) will it take her to repay the loan?

Calculate the effective financing rate : Marcus, Inc., a U.S. company takes out a 1-year loan in Germany. The U.S. 1-year interest rate is 5%, and the German 1-year interest rate is 6%. The spot rate of the euro is $1.33 and the 1-year forward rate is $1.29. Calculate the effective financin..

Calculate the financing cost of these bonds : MLC Audio has decided to issue 3-year bonds denominated in 10 million Singapore dollars. The bonds have a coupon rate of 10%. The Singapore dollar is expected to appreciate from its current level of $.82 to $.80, $.79, and $.78 in years 1, 2, and 3, ..

About the investments : The 1-year interest rate is 7% in the U.S. and 3% in Japan. How much would the yen have to appreciate for a U.S. investor to get the same return on both U.S. and Japanese investments? Show you derive the answer.

User Account

All Pages