FIN 010 Lecture Notes - Lecture 3: Progressive Tax, Santa Barbara City College, Small Business
Document Summary
Small business is key to aus economy as per their contribution in terms of employment and production. But smes pay more, on average, for borrowings than households and larger businesses. Evolution of the bank business model: more quantitative models applied in the. Other challenges for smes: inadequate security and business plan. Crowd funding, credit guarantee scheme (cgs) and p2p lending pricing of finance and collateral requirements. Calculate taxable income (assessable income less allowable deductions) If individual, follow marginal tax rate table to work out tax payables: if corporate, multiply taxable income by flat tax rate. Progressive tax: higher tax (rate) on higher incomes. Taxable income = gross income - allowable deductions. Tax payable is the actual tax owed (paid) to government. In practice, wages are taxed when paid. Marginal tax rate: the tax rate on the last unit of taxable income. Net profit of the partnership is shared among the partners.
