Annotated Bibliography On Why Do People Pay Taxes

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 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.

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

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.

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.

EThe Federal tax code of the United States mandates that every U.S. citizen receiving income who meets a minimum income threshold is required to complete and file a federal income tax return prepared in accordance with a complex set of Federal codes (Internal Revenue Service [IRS], 1974; Publication 17 [Pub.17], 2015). This tax preparation model relies upon the principal-agent theory to ensure taxpayer participation. In this system, the government, as the principal, requires the taxpayer, as the agent, to voluntarily submit a compliant return. Accordingly, anyone acting on behalf of the taxpayer becomes the taxpayer’s agent.

Politics is the process in which negotiation and resistance is utilized to establish a stable society. In contrast, the current United States tax system fails to form such solid grounds. Without such a complex system, anarchy and chaos will overrule the goal of fairness that is favorable to people. Taxation is a branch of politics that is distorted in some ways in which it does not satisfy many people’s needs. Although a government is designed to run an organized society and meet the needs of citizens, it does not always do a great job. Many people feel that their place in the financial world grants them immunity from excessive taxes while others feel they are being hurt by such an unequal tax burden. The purpose of taxes is to benefit society as a whole and keep the government running, but it is not working properly and efficiently. People’s various situations make it difficult to implement the current tax system. Taxation has long been deliberated, and the issue holds many points, such as income, a person’s age, and where they live, these circumstances are unequal and unfair to many people.

Income tax is considered to be one of the greatest ways that a country amasses wealth through known means from the public in order to use the funds for the benefit and welfare of the community. Since a very long time, there have been many discussions and debates on the way the finds collected for income tax have been spend. There are many who think that there is a lot of mismanagement and feel that the amount of the actual money spent on welfare of the community is far less that what gets collected by the country.

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.

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

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

If income tax compliance is principally problem of tax evasion, enforcement is the centered concern. It is very suitable for examining the trade-offs between the expected benefits of evading tax with the risk of detection and penalties. If income tax compliance is involving taxpayers’ avoidance, the behavioral approach would better serve the purpose. Self-assessment is accompanied with a system of penalties for defaulters in the UK and New Zealand, and modernization of tax system rely on tax payers to assess their own liability with a system of harsh penalties with wide span in place for ensuring better compliance. Harassment can lessen the eagerness of compliant tax payers to obey in the perception of an unfair system. There must be a balanced approach in promoting voluntary income tax compliance as well as deterring willful non- compliant behavior. Despite the limitations of this philosophy and the insightful appeal of the broader behavioral approach, the economic approach still has a positive role to play in income tax compliance field. Both approaches should be amalgamated and part of a single policy for income tax compliance mechanism. Tax payer motivation factor in particular and his behavior in general in overall tax background need to be discovered. This research would result in better understanding of behavioral relationships involved in income tax

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.

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

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;