Problem
Taxes and the Role of the CFO
Currently, our national discussion seems to be around taxes. With tens of thousands more IRS agents for enforcement, of both personal and business taxpayers, and a new national debate around effectiveness, let's explore a few questions about taxes related to business......
How are most organizations impacted by Taxes? What role does the Chief Financial Officer play in meeting tax requirements? What is the primary purpose of all CFO's as it relates to taxes? One website you should take a look at is. And remember to see the Files Tab for tips on responding to Forums!
And a few more questions to tax your minds..................
What funding decisions are created by taxes on organizations? What taxes do organizations face?
How are taxes ultimately covered by an organization? Who really pays? For some insight into this, you may want to take a look ahead at lecture 2.1, or at least it's powerpoints. What happens at the CFO level? Think of employment taxes. Where are they collected? Who collects them, and who incurs that cost? How is that cost compensated? For those of us that have been employed by others in jobs, we probably have some sense of these answers, right?
Alternatively, what about corporate taxes? Who ultimately pays those? Before you answer, think about where corporations get their money. Stockholders initially, of course, but that's not what keeps the doors open. What makes up words like margins? Profit? Getting the idea? These answers get you a jump start on week two's more in depth analysis of these topics.
In your opinion, when might increasing taxes on businesses be considered appropriate? Under what conditions? When might decreasing the tax burden on businesses be considered appropriate? Under what circumstances? As asked previously, how many different types of taxes do most corporations have to pay? Can you identify some, in addition to those mentioned above? (Hint: The list is longer than you might first think!)