UDIPTA (Uniform Division of Income for Tax Purposes Act) Essay

UDIPTA (Uniform Division of Income for Tax Purposes Act) - Essay Example The Act suggests a three factor approach to allocate business income of a tax payer using payroll, property and sales; it assigns equal weights on each of the three factors. Many states have adopted the act, but others have set their own acts or have simply applied only certain aspects of the act with respect to the treatment of non-business income. The state courts and taxing authorities have interpreted the uniform laws differently according to their differing definitions of business income. As a result, they have set new laws but apply the act in a clause and change it with regard to the different definition. Many of the states assign significant weight to the sales factor (Garrigan & Parsons 83-131). Revision of the act has led to the creation of the Multi-state Tax Compact that provides equitable apportioning tax bases and resolves apportionment disputes between states, and encourages uniform and compatible state tax systems and how to avoid duplicative taxation. This compact also includes the uniform act and its three-factor apportionment formula enacted by at least 20 states in the nation. Some states like Alabama have entirely adopted the UDITPA definitions of business income and non business income (UDITPA Sec 1(a) and (e) without modification. This is where business income comprises of incomes arising from transactions, regular activities of trade and business and acquisition, management and disposition of property. Non-business income means all income from allocation other than business income, which includes interest, dividends, and rents. Many states provide that rents received by a REIT (Real Estate Investment Trust) are a form of income generated in connection with a trade or business hence treated as business income. In places of multistate operations, the business income is divided among the states according to the proportion

A 2-3 page, double-spaced statement of purpose that describes your Essay

A 2-3 page, double-spaced statement of purpose that describes your background, reasons for applying to this graduate program, and your educational and career goals - Essay Example onditions of the living standard depend upon various economic measures taken by an individual and market as a whole, thus I opted for Economics in my Bachelor level education. My enthusiasm for learning more about Economics developed because of the intellectual family environment I was part of. My father was always open for discussions which encouraged me to be inquisitive about global happenings around the world. It was because of my father; I felt my opinions in the field, had a value associated with the real world. I also had the opportunity to meet two well known politicians which promoted my interest in the field of Economics and enhanced my understanding about how politicians or government can have an impact on the economic conditions of a country. My concern with global issues increased when I studied in US as well as in China. At this time, economic growth of China is the most interesting global issue for me. I realize that although China is the fastest growing economy in the world, issues related to wages and labor working standard have started to emerge. In the Masters program, I would like to further explore such questions: Is China’s undervalued currency good for its domestic economy? How should China maintain its economic growth in the long run? What are the economic policies, China should learn from the U.S. for its further development? I believe that while my Masters program will equip me with sufficient knowledge to answer these questions, my educational background in Econometrics will enhance my capabilities of learning with quantitative analysis skills such as regression model and time-series model. This skill has guided me through casual effects and hypotheses analysis. With this knowledge, I wish to gain a hands-on experience in policy analysis and make a difference in safeguarding developing countries’ economic development through research. My passion for the subject is not only related to the content of the subject but also my input