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What is Taxation Without Representation? 'Taxation without representation' is a phrase commonly thought to have been first made famous by Boston lawyer James Otis in 1765. It refers to the idea of imposing taxes on people who have no recourse against or control over the taxing authority. The phrase was used to help spark the American Revolution.
According to the Laffer curve, a government that wishes to maximize tax revenues must determine its optimal tax rate. Many economists have indicated that this can only be estimated for practical purposes. The Laffer curve is a graphic representation of the relationship between an increasing tax rate and a government's total revenues.
Ad valorem (Latin for 'according to the value') taxes are levied solely as a percentage of a property's market value without regard to quantity or intrinsic value. For instance, if the market value of a 2,000 square-foot home is $100,000, the ad valorem tax levied will be based solely on the home's $100,000 value, regardless of its relative ...
Because of accrual accounting rules, a company may be able to defer taxes on some of its income. This 'unrealized' tax debt is put into an account on the balance sheet called deferred tax liability. You can find DTL on the balance sheet or on a fund 's statement of assets and liabilities. As the name implies, DTL is on the liability side of the ...
MLP Taxation 101: The Overview. MLPs are similar to corporations in some respects but are vastly different in others, especially with regard to tax treatment. A corporation is a distinct legal entity, separate from its shareholders and employees. Like individual taxpayers, a corporation must pay tax on its income.
Specific is the most common type. For example, a bottle of wine that normally costs $10 may have a specific excise tax of $2 imposed on it. As per the intent of the excise tax, the additional cost of the wine is passed onto the consumer, making the retail cost of the bottle $12. While this seemingly does not affect the maker of the wine, who ...
For example, let's assume that John is a Canadian citizen who owns his own company. John's company earned $10,000 last year, and some of the revenue was from business conducted in the U.S. Because of the tax treaty between the U.S. and Canada, John's business profits are not subject to taxation by the U.S. government. Generally speaking, tax ...
When regulation or taxation becomes too high, when supply and demand are way out of balance, or when competition has been too restricted, people will always look for a way to get goods or services cheaper, faster or more easily. A black market is the illegal purchase and sale of goods and services.
Let’s calculate EBITDA using Company XYZ’s income statement below. To calculate EBITDA, find the line items for: Then, plug those numbers into the EBITDA formula... EBITDA = $250,000 + $50,000 + $100,000 + $75,000. In this example, the firm's EBITDA comes out to $500,000.
A pass-through entity (also known as flow-through entity) is a business structure in which business income is treated as personal income of the owners. It is used to avoid double taxation, when business income is subject to corporate tax and then to the owner’s personal income. The tax liability is thereby passed onto the owners and the ...