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US income tax versus UK vat tax

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Compare the current Federal income tax structure of the U.S. with that of the VAT national tax implemented by the United Kingdom. How would the U.S tax structure change if it implemented the VAT system? In your opinion, do you think the VAT system is preferable to the current one? Explain your answers with examples.

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The UK VAT differs from the US income tax as it operates more as our version of a sales tax such as implemented by many states. Companies and consumers pay the tax for the products they buy, apart from staples such as groceries, education, children's clothing, etc. Often the tax is incorperated into the actual listed price of the good, so a tv listed at 500 pounds is actually 500 pounds rather than you attempting to figure ...

Solution Summary

This solution compares the VAT tax in the United Kingdom with the United State's income tax system, offering advice on how the United States system would likely change if it switched to a VAT system like the UK. It offers links to understanding the VAT structure and to a thesis which compares the two and theorizes about the change.

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Long Term Debt, Contingencies and Leases

See the attachment.

Discuss trends, financial position, ratios, etc. For example, it may be helpful to discuss inventory turnover when assessing inventory valuation risk.
Obtain the 2010 financial statements and notes (annual report or 10-K) for Monro Muffler Brake, Inc. (MNRO). Use Tenneco for a benchmark and comparison purposes. This means ratios must be completed for both companies (but a description of the company only needs to be done for Monro).

To assess a company's financial statements, think specifically about: (1) the types of underlying transactions and events that affect the company, (2) how well the financial accounting rules (i.e., GAAP) reflect those transactions and events, (3) the aggressiveness or conservatism of management's accounting choices, and (4) how the annual report helps you assess the company's risks, financial position, and profitability.

For each item below, provide an easy to read and understandable presentation of the facts for your company. There should be a brief description of the items (Monro) and computational analysis (ratios).

LONG-TERM DEBT, CONTINGENCIES AND LEASES:
? Description of long-term debt
? Major leasing activities (if any) and types of leases involved
? Business reasons for, and importance of leasing activities
? Other significant liabilities disclosed for contingencies, warranties or commitments and their importance

Things to consider: Description of debts, Debt Percentage, Operating leases vs Capital leases, Present Value of bonds and leases, etc.

Link for Munro 10K:
http://quote.morningstar.com/stock-filing/Annual-Report/2011/3/26/t.aspx?t=XNAS:MNRO&ft=10-K&d=494a5ad12f3cde1f4e477c4bd3c24f2b

Link for Tenneco 10K:
http://www.tenneco.com/media/annualreport/pdfs/Tenneco-2010-10-K.pdf.

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