Assume You Are A Cpa

Answer to Question 1Federal Corporate tax systems in economy are needed to be reformed in every budget. Tax system in every country should be such so as to assist in the development of Country. Current tax system of US is needed to be reformed as per many economist and policy makers.Current rates of Taxes in US is given below-Federal United States (USA) Corporate Tax RatesTaxable income overBut not overYour tax isOf the amount over$0$50,000 15%$0$50,000$75,0007,50025%$50,000$75,000$100,00013,75034%$75,000$100,000$335,00022,25039%$100,000$335,000$10,000,000113,90034%$335,000$10,000,000$15,000,0003,400,00035%$10,000,000$15,000,000$18,333,3335,150,00038%$15,000,000$18,333,333 flat rate 35% As per the above table, the general corporate tax rate is 35% on domestic and foreign income. US tax system also provides different types of exemptions, deductions, tax credits and other benefits being termed as “Tax Expenditures.”Following proposals for change in corporate current tax are available-Broadening the exemption base, lowering the rates- The most common way of reforming any corporate tax system is increasing