| A.
R. Kakhsaz Company
an accountancy corporation
Member
American Institute of
Certified Public Accountants
International associates:
Tavana & Co.
Chartered Accountants
Toronto, Canada
Tel.416-229-2221
|
Do corporations pay taxes?
Yes, indeed. But that's clearly wrong .
People pay taxes. Suppliers of capital
through lower returns, corporate
employees through lower wages, and/
or consumers through higher prices.
And that remains true even when the tax
is aimed at capital. Taxing corporations
reduces returns to stockholders thus
making it a tax on savings and
investment. Numerous economic
studies, old and recent, show that
corporate taxes hit wage earners harder
than the stockholders. A recent study
concluded that a 1% increase in
corporate tax rates results in a 0.8%
decrease in wage rates. Tax
Foundation researchers found that
Americans with incomes in the bottom
20%, pay an average of only $171 in
personal income taxes, but pay $271 in
higher prices resulting from corporate
income taxes. This profound finding
suggests that cutting the corporate
income tax will do more to help
low-income Americans than any
additional cuts in the individual income
tax. A survey and study by KPMG shows
that competition for investment
continues to drive down corporate tax
rates around the globe, with further cuts
in the pipeline from China, Germany,
Singapore and Britain, among others.
While the entire U.S. tax system
is over-due for a fundamental reform,
corporate taxes should be replaced by
consumption taxes as it would be
positive for investment, productivity and
economic growth. It would also bolster
wages and brings, albeit partially, badly
needed simplicity to the U.S. tax
system.
Excerpt from a court
proceeding:
Q: She had three children, right?
A: Yes.
Q: How many were boys?
A: None.
Q: Were there any girls?
Between 2000 and 2006,
American real disposable income per
person rose 1.4% a year, but real
personal consumption per person
increased even faster, at 2.1%.
For more of the Generalist,
please visit ARKCPACOM.
|
theGeneralist,
a one-page monthly
publication of the accounting firm of
A. R.
Kakhsaz Company, is in its 13th
year of providing information,
presented
fairly and accurately, from sources we
can depend upon and
trust.
Merry Christmas
Feliz Navidad
Happy Yalda
Frohiche Weihnachten
Happy Hanukkah
Joyeux Noel
Merii Kurisumasu
Happy Kwanzaa
Wishing you
the season's peace,
joy and blessings. Happy 2008 and
thank you for your friendship.
Tomorrow:
One of the greatest
labor-saving devices of today.
Yalda:
A celebration of Winter
Solstice on December 21st. It's the
longest night of the year. This night has
been celebrated in ancient cultures as the
victory of light over darkness and the
renewal of the sun. After Yalda, the days
are getting longer and nights shorter.
Family and friends get together on Yalda
festival. Different kinds of dried fruits,
nuts, seeds and fresh winter fruits such
as pomegranates are consumed in
reminiscence of the ancient feasts to
celebrate and pray to ensure the
protection of the winter crops.
A Supreme Court jurist
once wrote
that sunlight is the best disinfectant.
Be wary of those who find it more
profitable to work in the dark.
Always
be a little kinder.
Hanukkah
is a holiday celebrated
by Jewish people every year between
the end of November and the end of
December. It begins on the 25th day of
the Hebrew month of Kislev, a date
which varies from year to year on the
Western calendar.
We see more in numbers
- than just numbers...
Ali R. Kakhsaz, CPA, MAcc
www.arkcpa.com
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