Sample Business Law Paper on Tax Effectiveness

As Benjamin Franklin says that there were only two things which were inevitable in life,
taxes, and death, this means that in life as the death must occur, every consumer of producer will
also pay taxes at some point either knowingly or unknowing. The United States is not an
exception to other nations who subject their corporations and firms to various types of taxes,
including corporate taxes. Before the 2017Tax Cuts and Job Acts (TCJA), the states taxed its
residents and corporations on their respective worldwide incomes. Consequently, there are more
other regards towards taxation, including the Section 192 of Income Tax Act of 1961 dealing
with tax deductions at source (TDS) where the employer directly deducts the tax from the salary
payables (Wamhoff & Gardner, 2019). However, the critical source of finance of any
government taxes and therefore every government will be keen on this to raise the required
capital to perform its services while providing essential services to the public.
The TCJA of 2017 decreased the rate of corporate tax, although not its entire provisions
lowered the corporate burden of the tax. Under the current Revenue Code section, 965 of the
U.S. multinational firms and entities a one-time repatriation tax, which is mandatory. However,
this brought a lot of effects in the 2018 and 2017 preparation of financial statements. First, before
the TCJA, the United States shareholders of foreign corporations were not taxed on the earnings
of such corporations until the profits were repatriated to them. The shareholders' earnings were
also treated as dividends of the parent company being charged up to 35% tax (Sammartino,
2018). Further, TCJA introduced IRC (Internal Revenue Code) on global tax income to eliminate
or reduce the taxpayers' ability to deferring earnings generated ion 2017. However, does this
satisfy and benefit both the taxpayer, corporation, and the state? How is it economical and

productive? Finally, is this type of taxation compatible with FASB and other accounting
standards? These are all questions to be answered.
In conclusion, repatriation taxes are essential in monitoring the past profits of any United
States foreign corporations' subsidiaries. It is also useful in the dealings of international
businesses and currency upon which later a rate of 35% is charged. Therefore these corporate
and repatriation taxes are critical sources of government revenue, and they should, therefore, be
paid when due by respective corporations. The central governments should also formulate other
reforms to make these taxes effective and non-avoidable in the future.



Sammartino, F., Stallworth, P., & Weiner, D. (2018). The effect of the TCJA individual income
tax provisions across income groups and across the states. Washington, DC:
Retrieved, 5(7), 2018.
Wamhoff, S., & Gardner, M. (2019). Who Pays Taxes in America in 2019?. Institute on Taxation