Our Federal corporate tax laws provide numerous incentives intended to promote certain activities, industries and job creation. Some argue that these measures are ineffective while others say that they do not go far enough in stimulating the economy and employment. Four examples of tax incentives offered by the Federal government are: (1) the Credit for Increasing Research Activities (IRC Section 41), (2) the Work Opportunity Tax Credit (IRC Section 51), (3) the Energy Tax Credit (IRC Section 48), and (4) the Domestic Manufacturing Deduction (IRC Section 199).
Carefully review the Grading Rubric for the criteria that will be used to evaluate your assignment.
In an eight- to ten-page paper (formatted according to APA style guidelines), provide an analysis of the following:
For each of the four above federal corporate tax programs:
Provide an overview of the program citing changes in the legislation since inception.
Analyze the effectiveness of the program in terms of meeting its intended purpose.
Evaluate unintended tax and non-tax consequences of this legislation that have resulted from its passage.
Next, design and describe specific modifications that you would recommend to each of the above-mentioned programs. Evaluate the projected impact of these changes including the effect, if any, to:
Gross National Product
Federal tax revenue
Finally, include in your analysis a discussion of the likelihood of passage of these proposed changes taking into account the potential effect of these changes on federal deficit levels and the political process involved in enacting federal tax reform.
Writing the Final Paper
The Final Paper:
Must be eight to ten double-spaced pages in length (not including the title and reference pages) and formatted according to APA style as outlined in the Ashford Writing Center.
Must include a title page with the following:
Title of paper
Course name and number
Must begin with an introductory paragraph that has a succinct thesis statement.
Must address the topic of the paper with critical thought.
Must end with a conclusion that reaffirms your thesis.
Must use at least five scholarly sources, in addition to the text.
Must document all sources in APA style, as outlined in the Ashford Writing Center.
Must include a separate reference page that is formatted according to APA style as outlined in the Ashford Writing Center.
Provides an Overview of the Four Programs Citing Changes in the Legislation Since Inception and Analyze Their Effectiveness in Meeting Their Intended Purpose.
Evaluates Unintended Tax and Non-Tax Consequences of Each of These Legislations That Have Resulted From Their Passage. Total: 7.00
Designs and Describes Specific Modifications and Recommendations to Each of the Above-Mentioned Programs. Total: 3.50
Evaluate the Projected Impact of These Changes Including the Effect, if any, to GNP, Un- Employment Rate, and Federal Tax Revenue. Total: 3.50
Discusses the Likelihood of Passage of These Proposed Changes Taking Into Account the Potential Effect of These Changes on Federal Deficit Levels and the Political Process Involved in Enacting Federal Tax Reform. Total: 7.00
Critical Thinking: Explanation of Issues. Total: 0.50
Written Communication: Content Development. Total: 0.50
Written Communication: Control of Syntax and Mechanics. Total: 0.25
Written Communication: APA Formatting. Total: 0.25
Written Communication: Page Requirement. Total: 0.25
Written Communication: Resource Requirement. Total: 0.25