Accounting Question

1.. Do NOT RESPOND to my post. You will initiate your own post by asking a question that relates to the post you will write (that will address the topic in my post). The post has to have a curiosity score of at least 60.Respond to two questions posted by your classmates.

1. submit your own original question

A. What is your question?

B. Add a Description

C. Cite your Source

Packback Assignments:
Do you agree with Kamala Harris’s proposed changes to the tax law?
Vice-President Kamala Harris has proposed several new taxes,
or changes to the current tax laws, if she is elected President. Describe one
of these changes, and discuss why you agree or disagree with it?
1. submit your own original question
A. What is your question?
B. Add a Description (Minimum 300 words)
C. Cite your Source
2.submit a response to two other questions posed that week by your classmates!
To receive full credit, you should make all of your submissions achieve a curiosity
score of at least an 80 out of a 100. Here are a few things to ensure that you reach
an 80:
Don’t have spelling errors
Use paragraph breaks (don’t type one long 350 word paragraph)
Include a link to an external source
Add a description (where you insert your text)
If your curiosity score is less than 80, just click on the “options” tab and edit
your submission until you get it to an 80 or higher.
Classmates #1
Where does Vice President Kamala Harris stand on corporate tax rate and will it be
beneficial to the American people?
Vice President Kamala Harris has stated that if she becomes president she will
increase the corporate tax rate from 21% to 28%. She has stated that the increase in
corporate tax would put money back into American peoples’ pockets, but that is not
the case. If the tax is raised, then this would cause lower wages, higher prices on
products, and fewer opportunities for workers. Raising corporate taxes would benefit
the government by increasing the federal revenue, but in turn corporations would
create ways to pay the extra in taxes, such as cutting wages and jobs. I do not agree on
an increase in corporate taxes as it would not be beneficial for the people it is
supposed to help and would harm economic growth.
Source: https://taxfoundation.org/blog/kamala-harris-tax-proposals-2024/
Who Bears the Burden of the Corporate Income Tax? | Tax Foundation
Classmates #2
Is the Trump/Harris proposed plan of removing the taxation of tips beneficial to
society?
One proposed tax change, championed by both 2024 presidential candidates, Donald
Trump and Kamala Harris, is to make all tips received tax-deductible. This proposed
change has, as with most tax plans, both possible benefits and possible negative
consequences. The primary benefit is that many jobs that rely on tips have low wages.
According to the timekeeping company Clockify (2024), in many states, and in
Federal law, the average tipped employee has a lower minimum wage than salaried
workers. The Federal tipped minimum wage is $2.13 per hour, compared to $7.25
for other workers (Clockify). Adding to the lower income problem for workers
dependent on tips, employers may require that their employees share tips, commonly
known as the “tip jars.” While this may appear equitable, sharing tips means that
those workers who provide exemplary service may actually earn less on their tips to
balance out those workers who do not provide as good a service. Removing the
federal tax on tips would therefore permit workers to keep more of their earnings and
could provide an additional benefit of incentivizing better service to earn even more
non-taxed tip money.
However, there are also potential problems with the idea. First, it could be argued that
removing the tax on tips would be unfair because no such benefit is being given to
salaried employees. Miami Herald journalist Brendan Rascius (2024) details that
many tax experts are concerned. He writes, “One of the chief criticisms of the
proposal is that it is prejudicial, arbitrarily offering tax-exempt status for a sliver of
the workforce, while leaving out the rest” (Rascius). Second, it is important to
consider that not all tipped employees are low-income earners and not all salaried
employees are high income. For example, plumbers receive tips, yet the 2024 median
salary for a Georgia plumber is $59,560, according to Salary.com. Third, tip taxes
provide a significant source of revenue for the Federal government. If the government
wishes to continue at its current level of spending after this tax cut goes into effect,
they will have to spend less, increase taxes on others, or increase the debt. The US
Budget Watch (2024) states that, “On a static basis, we estimate this would reduce
revenue by $150 to $250 billion between Fiscal Year (FY) 2026 through FY 2035,
depending on how fast tip income grows and over what distribution of income it is
concentrated.”
In conclusion, changes in the tax law frequently have domino effects, both manifest
and latent, and must be considered before making any changes.
Source: ‘No tax on tips’ is a bad policy idea, tax experts say | Miami Herald
Tipped Wages by State for 2024 (clockify.me)
Plumber Salary in Alabama (Jul, 2024) | Salary.com
Donald Trump’s Proposal to Exempt Tip Income from Federal Taxes-2024-06-16
(crfb.org)