calculate the tax disadvantage to organization a U.S. business today after passage of the Jobs and Show more calculate the tax disadvantage to organization a U.S. business today after passage of the Jobs and Growth Tax Relief Reconciliation Act of 2003 as a corporation vs. a partnership under the following conditions. Assume that all earnings will be paid out as cash dividends. Operating income (operating profit before taxes) will be $500000 per year under either organizational form; the effective corporate profits tax rate is 35%( Tc=0.35); the averafe personal tax rate for the partners of the business is also 35% ( Tp=.35); and capital gains tax rate on dividend income is 15% (Tcg= .15). Then recalculate the tax disadvantage using the same income but with the maximum tax rates that existed before 2003. These rates were 35% (Tcg=.15) on corporate profits and 38.6 % (Tp=.386) on personal investment income. Show less
PLACE THIS ORDER OR A SIMILAR ORDER WITH BEST NURSING TUTORS TODAY AND GET AN AMAZING DISCOUNT
The post Assume that all earnings will be paid out as cash dividends. Operating income appeared first on BEST NURSING TUTORS .