ACCT 323-what is the fairest way to allocate the costs
1. The ultimate question can be phrased as follows: what is the fairest way to allocate the costs of maintaining a regulated capitalist economy, where the market’s laws of supply and demand create – wealth, among the members of the population? Possibility 1: Allocate the costs equally among all members of the population.Possibility 2: Allocate the costs according to wealth.Possibility 3:Allocate the costs according to “ability to pay.”Possibility 4: Allocate the costs according to “utility” or “standard of living.”Possibility 5: Allocate the costs according to the benefits received from government. What possibility or possibilities do you favor?2. CPAs often face uncertainly in the law in regard to preparing tax returns. There are often inconsistency in federal and state law on certain issues. One outstanding issue for CPAs currently is preparing tax returns for people/businesses in the cannabis business. Recreational and medicinal cannabis is legal in some states but still illegal at the federal level. Read the attached article and comment on how CPAs should deal with this issue. Also comment on how you as a tax professional would deal with this issue.http://www.aicpa…./advocacy/state/downloadabledocuments/marijuanacpasissuebrief.pdf3. Identity theft related to tax information – Is the IRS doing enough to protect US citizens from the theft of personal information. Read the following article and comment on your level of comfort. Post Article ————————NEED TO POST ARTICLE.
