Our Federal corporate tax laws provide numerous incentivesintended to promote certain activities, industries and jobcreation. Some argue that these measures are ineffective whileothers say that they do not go far enough in stimulating theeconomy and employment. Four examples of tax incentives offered bythe Federal government are: (1) the Credit for Increasing ResearchActivities (IRC Section 41), (2) the Work Opportunity Tax Credit(IRC Section 51), (3) the Energy Tax Credit (IRC Section 48), and(4) the Domestic Manufacturing Deduction (IRC Section 199).
Carefully review the Grading Rubric for the criteria that willbe used to evaluate your assignment.
In an eight- to ten-page paper (formatted according to APA styleguidelines), provide an analysis of the following:
For each of the four above federal corporate tax programs:
Provide an overview of the program citing changes in thelegislation since inception.
Analyze the effectiveness of the program in terms of meeting itsintended purpose.
Evaluate unintended tax and non-tax consequences of thislegislation that have resulted from its passage.
Next, design and describe specific modifications that you wouldrecommend to each of the above-mentioned programs. Evaluate theprojected impact of these changes including the effect, if any,to:
Gross National Product
Unemployment rate
Federal tax revenue
Finally, include in your analysis a discussion of the likelihoodof passage of these proposed changes taking into account thepotential effect of these changes on federal deficit levels and thepolitical process involved in enacting federal tax reform.
Our Federal corporate tax laws provide numerous incentivesintended to promote certain activities, industries and jobcreation. Some argue that these measures are ineffective whileothers say that they do not go far enough in stimulating theeconomy and employment. Four examples of tax incentives offered bythe Federal government are: (1) the Credit for Increasing ResearchActivities (IRC Section 41), (2) the Work Opportunity Tax Credit(IRC Section 51), (3) the Energy Tax Credit (IRC Section 48), and(4) the Domestic Manufacturing Deduction (IRC Section 199).
Carefully review the Grading Rubric for the criteria that willbe used to evaluate your assignment.
In an eight- to ten-page paper (formatted according to APA styleguidelines), provide an analysis of the following:
For each of the four above federal corporate tax programs:
Provide an overview of the program citing changes in thelegislation since inception.
Analyze the effectiveness of the program in terms of meeting itsintended purpose.
Evaluate unintended tax and non-tax consequences of thislegislation that have resulted from its passage.
Next, design and describe specific modifications that you wouldrecommend to each of the above-mentioned programs. Evaluate theprojected impact of these changes including the effect, if any,to:
Gross National Product
Unemployment rate
Federal tax revenue
Finally, include in your analysis a discussion of the likelihoodof passage of these proposed changes taking into account thepotential effect of these changes on federal deficit levels and thepolitical process involved in enacting federal tax reform.
