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United States Tax Rules

 

            In the United States, there are various schemes that are employed so as to determine and ascertain the tax imposed on goods, services, and commercial undertakings (Shaviro, 2011). When it comes to profit-making entities, it is necessary to highlight that the rules, which apply to companies, have similarities as well as differences with those that relate to partnerships. To begin with, in the case of corporate taxation, which is normally undertaken at the federal level, taxes range from 15 to 35 percent. This depends on the size of the business endeavor and other factors that the respective state deems fit, as long as they are within the law. Furthermore, not all the services that entail corporations are subject to taxation. For example, in the event, when two or more companies merge or engage in acquisition endeavors, such actions are tax free. As an issue of verity, this aspect enables the concerned institutions to enjoy autonomy and freedom to participate in what could be highlighted as their 'indoor activities'. It is also indispensable and rather justifiable to assert that, in America, some corporations that deal with goods or services, that are either outsourced or acquired from other countries, ought to pay foreign tax. Usually, this scheme targets to make sure that the market operates on equality, equity, and inclusiveness. Even though it could be claimed that shareholders, in the case of corporations, are exempted from taxation, the taxation system and rules are such that their taxes are extracted from their corresponding dividends.
             On the other hand, partnerships are characterized by the following taxation rules and principles. First of all, as opposed to corporations, partnerships are not directly subjected to the tax system (Navasada, 2012). Essentially, the law requires that the respective partners, guided by their diverse and specific shares, make timely payments to the particular jurisdiction.


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