C. F. Jordon Management Services has operated for the last 26 years in a northern province where the provincial income tax on corporate revenue is 4.8% per year. C. F. Jordon pays an average federal tax of 23% and reports taxable income of $4.6 million. Because of excessive labor cost increases, the president wants to move to another province to reduce the total tax burden. The new province may have to be willing to offer tax allowances or an interest-free grant for the first couple of years to attract the company. Problem 17.013.a: Calculate the effective tax rate You are an engineer with the company and are asked to determine the effective tax rate for C. F. Jordon. The effective tax rate is determined to be %.

C. F. Jordon Management Services has operated for the last 26 years in a northern province where the provincial income tax on corporate revenue is 4.8% per year. C. F. Jordon pays an average federal tax of 23% and reports taxable income of $4.6 million. Because of excessive labor cost increases, the president wants to move to another province to reduce the total tax burden. The new province may have to be willing to offer tax allowances or an interest-free grant for the first couple of years to attract the company. Problem 17.013.a: Calculate the effective tax rate You are an engineer with the company and are asked to determine the effective tax rate for C. F. Jordon. The effective tax rate is determined to be %.

Survey Of Economics

10th Edition

ISBN:9781337111522

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter16: The Public Sector

Section: Chapter Questions

Problem 8SQ

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