by TheBusinessProfessor | Feb 23, 2025 | Business Taxation
What is Bracket Creep?The term Bracket Creep is used for describing a situation when inflation drives the wages and salaries into higher tax brackets. In effect, the taxpayers need to pay a higher tax without any increase in the real value of the wage of salary.How...
by TheBusinessProfessor | Feb 23, 2025 | Business Taxation
What is the Benefit Principle?In taxation, the benefit principle is a principle based on the notion that those who benefit more from government expenditure or spending should pay more taxes that those that do not. This principle is one that outlines what government...
by TheBusinessProfessor | Feb 23, 2025 | Business Taxation
What is Annualized Income Installment Method?An Annualized Income Installment Method is a tax reporting method that helps taxpayers effectively and accurately estimate their taxes. This method calculates an employee’s (taxpayer’s) estimated tax and helps...
by TheBusinessProfessor | Feb 23, 2025 | Business Taxation
What is an Adjusted Basis?Adjusted Basis is often used for taxation and accounting purposes. It is the measure of an asset’s net cost after tax deductions or after it has been adjusted for tax purposes. The adjustment basis is calculated after certain...
by TheBusinessProfessor | Feb 23, 2025 | Business Taxation
What is the Accelerated Deposit Rule?The Accelerated Deposit Rule says that if the employment taxes of an employer total $100,000 or more in one business day, the tax withholdings must be deposited in a tax withholding account or paid to the IRS the next day. If an...
by TheBusinessProfessor | Feb 23, 2025 | Business Taxation
What is a Value-Added Tax?Value Added Tax or commonly known as VAT is a type of indirect tax which is imposed on the domestic consumption of goods and services. Food, essential medicines, and certain other items are exempted from this tax. This tax is levied at each...
