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  3. 2. what if the u.s. tax structure moved away from

2. What if the U.S. tax structure moved away from taxing income to taxing the value...

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Accounting

2. What if the U.S. tax structure moved awayfrom taxing income to taxing the value a company added? Doyou think Apple would prefer:

(a) tax on income (at 2018 rate)

(b) a Value Add Tax (VAT) (enacted in other countries and beingconsidered for the U.S.)

and/or (c) goods and services taxes (GST)?

Answer & Explanation Solved by verified expert
3.8 Ratings (578 Votes)
The US tax system is set up on both a federal and state level There are several types of taxes income sales capital gains etc Federal and state taxes are completely separate and each has its own authority to charge taxes The federal government doesnt have the right to interfere with state taxation Each state has its own tax system that is separate from the other states Within the state there may be several jurisdictions that also charge taxes For example counties or towns may charge their own school taxes that are in addition to state taxes The US tax system is quite complex Income Tax Income tax is probably one of the most well known forms of taxation If any of you earn income in the US you will see the deductions on your paycheck Every person who earns income in the US is supposed to pay income tax on both the federal and state level Federal taxes include social security and FICA Each state also has its own form of income tax that employers also withhold from your paycheck If you earn over a certain amount 6750 you must file both federal and state taxes before April 15th of each year Sales Tax Another form of tax that you will become very familiar with is sales tax    See Answer
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