Impact of Reduced Corporate Tax on Employment and Household Income
3 Research Objectives 4 1. The impact of reduced corporate tax on GDP, economy and investment ventures. 4 Research Questions 4 1. 5 Research Hypothesis 4 1. 6 Ethical Issues 5 CHAPTER TWO: LITERATURE REVIEW 6 2. 2 Explanatory Approach 12 3. 4 Research Strategy 13 3. 5 Nature of Data 14 3. 6 Negotiate Access 14 3. 7 Sampling 15 3. 1 Introduction 6 2. 2 Taxes 6 2. 3 Employment 7 2. 4 Household Income 7 2. 5 Theoretical Framework 8 2. 8 Techniques for Data Collection and Analysis 15 3. 9 Timeframe 15 3. 10 Resources 16 CHAPTER FOUR: CONCLUSION 17 References 18 CHAPTER ONE: INTRODUCTION 1. 1 Background to the Study The rates of unemployment, low wages, and stagnated economic growth have worried the United States for a couple of years. Currently, the U. There is a need to fill that research gap by examining the impact of reduced corporate tax rates on income and employment rates. 3 Research Objectives The objectives of this study are to determine: 1. The impact of reduced corporate tax on GDP, economy and investment ventures.
The Impact of reducing the corporate tax on job opportunities and income of households 1. 4 Research Questions The two main questions answered throughout the study are: 1. To maintain anonymity and confidentiality, the participants will not submit their personal contacts and name ((Denzin & Giardina, 2016). When submitting the questionnaire, it will not be possible to track their names or employee number. The participants are employees who are direct beneficiaries of reduced corporate tax. As such, they will be more than willing to participate in the study. Voluntary participation and informed consent will be encouraged. The review will determine if corporate tax rate of 21% will encourage economic growth, facilitate job opportunities, and boost the income of Americans (Sherman, 2017). 3 Employment Hagedorn et al (2016) argued for incentives for investment and tax reliefs rather that reduced corporate tax.
The authors believe the lower rates of investment in the United States and decreasing job opportunities are not caused by high taxes. In theory, investors are tempted to invest in countries with low corporate taxes. However, this argument ignores other environmental factors that make the U. S GDP Growth, 2000- 2017 Figure 23: Irish GDP GrowthROWTH, 2011-2016. All the authors agree that reducing or increasing corporate tax has a ripple effect on the economy. The authors further agree that how a firm decides to use its financial incentives depends entirely on the owners and the vision of the company. The point of divergent seems to be the effect of reducing or increasing tax rates. Unfortunately, there is no extensive study done previously to solve this debate.
CHAPTER THREE: METHODOLOGY 3. Introduction This research design will rely on mixed method research to collect data. Reio, 2016 explained that either quantitative or qualitative research designs have own strength and weakness hence the need to use mixed research design to either inform, validate, or compensate for the weaknesses of quantitative or qualitative research designs Moreover, mixed research method will offer a wide scope in terms of conduct and research design. The notable advantage of mixed research design is the possibility of triangulation, which makes it possible to examine the impact of reduced corporate tax rate more accurately using various techniques (Reio, 2016). The main problem with mixed research method will be to develop and apply the best combined strategies (Reio, 2016). In contrast, this study intends to predict the impact of reduced corporate tax rate on income and employment rates thus making it hard to use interpretivism (Saunders & Lewis, 2017).
Whereas the positivism research philosophy will go hand in hand with quantitative research method, use of critical realism and pragmatism in the study will help bridge the gap between qualitative and quantitative research (Saunders & Lewis, 2017). Using critical realism and pragmatism alongside positivism will make it possible to use mixed research methods that will yield the required results (Saunders & Lewis, 2017). Realism will seek to answer both the “how” and “why” questions that will arise as the study progresses. Realist approach captures the bigger picture when investigating a phenomenon (Saunders & Lewis, 2017). The approach is moving from the general to the specifics of the study. Deductive approach involves making hypothesis and developing theories and methodologies to test those hypothesis (Lee & Saunders, 2017). In this case the hypothesis developed is that reduced corporate tax increases job opportunities and income of employees.
If the methodologies, data, and results leads to the same outcomes as the assumptions of the hypothesis then the conclusion must also be accepted. In simple terms if the data obtained through mixed research is true, then the conclusion must also be true (Lee & Saunders, 2017). 4% (CIA, 2017). The results will then be compared with the U. S. which has a corporate tax rate of 35%, unemployment rates of 4. 4%, and GDP growth rate of 2. Use of surveys will help obtain primary data on possible impacts of reduced corporate tax. The obtained responses will then be analyzed deductively to draw conclusions. The study will use closed-ended questions that restricts the respondents to predetermined answers (Lee and Saunders 2017). Close-ended questions will be preferred because they make it easy to count the frequency of response for statistical analysis (Lee and Saunders 2017).
Due to logistics and cost related reasons, the survey will be conducted online. The researcher will notify the organizations of research, guarantee integrity, confidentiality, and show benefits. The study topic, questions, and objectives are among the trending topics in the U. S. A. In order to increase chances of cooperation from participating organizations and individual participants, ample time will be allocated towards preparation, a good introduction of the researcher, state the precise purpose and type of access required, and lastly, overcome any concerns that the organizations might have. Further, all the employees of eight organizations will have an equal chance of being selected. However, only the data for the first fifty employees per organization to successfully complete the questionnaire will be used in the study.
In the case of senior managers, the data for the first five managers will be considered for the study. The questionnaires are designed to ensure that senior managers and junior employees provide data on new investments, businesses expansion, future salary increment and bonuses to employees. On the other hand, an increase in the consumption of goods and services will indicate an increase in income of households resulting from the increase in disposable income. 9 Timeframe Task Due Date Formulation of study Idea 2/6/2018 Choosing research topic 2/12/2018 Research questions, objective, and hypotheses clearly stated and defined 2/14/2018 First review of the literature 2/15/2018 Formulation of research design 2/18/2018 Designing of research proposal 3/7/2018 First draft of research proposal 3/17/2018 Research proposal submitted 3/26/2018 3. 10 Resources Resource Purpose Questionnaires • Data collection • Recording data Laptop • Recording data • Receiving filled questionnaire • For calculations.
Computer software • Statistical analysis Software skills • To perform statistical analysis Research assistant • Help in data collection and analysis Biro and Paper • Writing and recording data Finances • Settling costs associated with the study CHAPTER FOUR: CONCLUSION As mentioned above, the U. S. , lowered its corporate tax rate believing the move will encourage job creation and improve income of households. ReferencesREFERENCES Bloomberg. These Are the Corporate Winners and Losers in the GOP's Final Tax Bill. Fortune. [Online] Available at: http://fortune. com/2017/12/16/gop-tax-bill-winners-and-losers/ [Accessed 24 March. html [Accessed 24 March 2018]. Denzin, N. K. , & Giardina, M. D. A. (2006, November). Ibn Khaldun’s Theory of Taxation and Its Relevance Today. In Conference on Ibn Khaldun, Madrid, during (pp. Hagedorn, M. Consequences of New Tax Law According To J.
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