FIN 221 Lecture Notes - Lecture 4: Ordinary Income, Alternative Minimum Tax, Tax Rate
Document Summary
In this world, nothing can be said to be certain except death and taxes. Anyone may arrange his affairs so that his taxes shall be as low as possible; he is not bound to choose that pattern (cid:449)hi(cid:272)h (cid:271)est pa(cid:455)s the treasur(cid:455). There is not e(cid:448)en a patrioti(cid:272) dut(cid:455) to in(cid:272)rease one"s ta(cid:454)es. O(cid:448)er and o(cid:448)er again the courts have said that there is nothing sinister in so arranging affairs as to keep taxes as low as possible. Everyone does it, rich and poor alike and all do right for nobody owes any public duty to pay more than the law demands judge learned. Taxes and financial planning - the principal purpose of taxes is to finance government activities: four major taxable categories, purchases, sales tax is added to the purchase price of goods. Does(cid:374)"t i(cid:374)(cid:272)lude food a(cid:374)d drugs for fi(cid:374)a(cid:374)(cid:272)ial (cid:271)urde(cid:374) o(cid:374) the poor: excise tax is imposed by the federal and state governments on specific goods and services.
