Annotated Bibliography On Why Do People Pay Taxes

why do the people of the United States have to pay taxes? Taxes have been a part of history since the start of the first civilizations. There are many different aspects of having to pay taxes, some negative and some positive. Many people think that taxes are outrageous, unnecessary, and torturous. While others consider them to be used for personal protection beneficial to society.

The main topic of this research paper is taxation. Seeing that this topic is pretty open, I’ve chosen to write about the proposed idea of Fair Tax. Along with a little bit of insight on Fair Tax and a couple highlights of history, I’ll try and explain some pros and cons as well as give my opinion on the topic.

Why do the people of America pay taxes? Taxes have played a role in history since the first civilization, ancient Mesopotamia. There are many different reasons for paying taxes, some negative, others positive. Many think taxes are unnecessary, horrible and insane, all the same, some think they are used for personal protection as well as them being a benefit to society.

The complexity of the Internal Revenue Code has been the source of genuine concern, standup jokes, and political theater for years, but its greatest effect on practitioners of tax is to create a myriad of complicated gray areas and thorny questions that are not quickly resolved to a neat yes-or-no answer. This ambiguity has resulted in a situation where the ethical and legal implications of tax practice are serious considerations for any professional who is engaging in this line of work.

A recent survey conducted by Jean Johnson (Johnson), shows that tax payers have made minimal effort to educate themselves on the impact of the current tax reform before congress. Most do not feel that the current tax regulations are fair to middle class individuals. They do not understand the impact of eliminating below the line deductions such as the student loan interest. The same issue holds true for understanding exactly how the tax liability is calculated on a return. This leads individuals to believe that most all changes being debated by current politicians will be difficult to address without assistance.

Managing assessment safe houses and different strategies utilized by rich people and expansive organizations to evade duty is significant; the measure of cash lost by creating nations to expense safe houses surpasses all universal advancement aid. This increments worldwide imbalance as well as implies that a higher extent of open consumption must be financed by citizens in lower pay bunches. In numerous nations tax assessment, has stopped to be fundamentally

First and foremost, there are some benefits of paying taxes. When people pay taxes they pay for many effective gains in society. For example, taxes pay for education, military, roads, dams, the police, and the fire department. Another positive aspect of paying taxes is that they go to welfare. Welfare is valuable because it helps the poor and their families have enough money to take care of themselves. If taxes didn’t

The net tax gap is this amount less tax paid late or collected by the IRS through enforcement mechanisms. Both the gross and net tax gaps can be subdivided into the three main components as the return non-filing, the income under-reporting, and the under payment gap. The under reporting gap is in turn made up of three rudiments- under reported income, over stated rebates/ reductions and net arithmetical mistakes in income tax return. Income tax law must accommodate fair administrative procedures, tax decisions and as well as appeal options but it all depends on substantial readiness of tax compliance on taxpayers. Efficient tax machinery involves actions to engage tax payers to comply willingly, without the need for enquiries,

In a democracy, being taxed is an institution that is often despised by the citizens, but are often necessary for the functionality of a government. A major effort by the Trump administration is to reform the current tax code in the United States and bring back the “Reagan Tax Cuts,” which often Republican reminisce about. From this, there are polarized views about the subject from liberal and conservative views, such as Center for American Progress’ view on the losers and winners of the House GOP tax plan, and The Heritage Foundation’s overall macroeconomic standpoint on the tax bill. The article by the Center for American Progress emphasizes the actual impact to average everyday Americans contrasted to the wealthy elite. In contrast to

Why do we need to pay taxes? Taxes are used to manage and develop the country including economic growth, education, health, transportation, public welfare, defense and maintaining peace in domestic, developing infrastructure. Moreover, taxes are the salaries of government officers. Taxpayers are the citizens who have an income. In some countries, citizens who have high income, usually pay higher taxes. On the other hands, those with low income may not be taxable at all. When the law imposes a duty to pay the taxes of the citizens and the business then, it must have been authorized to perform its obligations for tax evasion or tax avoidance as well as the filing of tax or payment of tax under the law.

There are two things in life that are certain: death and taxes. In today's world, the majority of our government's income comes from taxation. A tax is not a voluntary payment or donation, but an enforced contribution imposed by government (Mikesell, 2011). Taxes are an amount of money collected from citizens, and they are used to provide public goods and services to benefit our communities. Taxes are amounts established in a political process of structured laws to determine how the collective cost of government services will be distributed among elements of the market economy. The two most important tax policies are the level of taxation, or how much taxes should be, and the structure of the system, or how revenue is to be raised

Taxation systems are usually modeled in such a way that they take into consideration the social welfare of the citizens. The government and other policy makers have the responsibility of ensuring that the system takes into account the needs of the citizens. The bottom line is that taxation should foster equal distribution of resources. The rate of taxation is usually arrived at after several considerations have been made. The rates are not fixed as they depend on the various economic changes. The issue of how taxation should be distributed among the different economic classes is yet to be addressed.

To fulfill this study, the numbers of theories are reviewed to guide the study. Theories are vital to the study because they provide starting point for testing concepts and also provide framework to review the study. The following theories are reviewed to assists the study: Ability to pay theory, Deterrence theory, Theory of equal sacrifice, rational expectation theory, Benefits theory of taxation and optimal tax theory. These theories are discussed here under;

Now-a-days, taxes are on everyone 's mind almost 24-7 since they influence our daily lives. People don’t know much more about the taxation, like how taxation plays an important role in development or why taxation is necessary. But with all these things we must to know where our tax is going, is it using for the development and management or somewhere else. We must aware about our rights and through Right to Information act, we can access every information of our tax system. First we have to understand that what tax is. So, tax is a financial charge or other levy imposed upon a taxpayer (an individual or legal entity) by a state or the functional equivalent of a state to fund various public expenditures. Taxation

I’ve summed up the introduction of Taxation to these slight words. Taxation is defined as a way that the government able to generate or collect revenue from the citizen of one’s nation through different sources. As what I’ve learned from Taxation course that there are two types of taxation, direct which are paid by the taxpayer directly to the government, and indirect which are collected by an intermediary (like a retail store) from the consumer. The intermediary who will file the tax return later and forward the amount of the money to the government with the return. This tax is applicable to organizations and individuals. In this reflection, I would like to highlight what I learned of business and individual taxation, the experience on working with a group for the project and what challenges I faced and how I was able to get past.