Characteristics Of A Good Taxation System

In this section of the paper flat tax will be compared with our current tax system in order to distinguish if differences it will make in the United States after its implementation. Along with that, the similarities between a flat tax and progressive tax will be noted too. As it is understandable that the ultimately targeted population for the flat tax is the upper class however when it comes to flat tax vs. progressive tax in the United States progressive tax system has been more welcoming than another method. However, as stated by Piketty and Saez (2007), in the United States the federal tax system has undergone three historical extreme changes which have pushed the federal tax system towards a less progressive side. Such in progressive tax system has provided the leverage of lower tax rates which benefits the one percent of Americans but not the majority of the American population. So although it is well circulated that the progressive tax methods have specific tax rates that ensure the higher

With so many choices it’s important to know the difference between each option. Public school is primarily supported by public funds. Public school funding comes primarily from local government sources of revenue. When revenue sources are looked at independently, state sources to schools of formula monies are the largest single source of funding followed closely by local government receipts of property tax monies. Public schools are often local to your community. They are close or close enough that the school district can provide bus services at no or low cost to you, the parents. The children who attend these schools are often your neighbors and the people your children will grow up with and develop bonds with within your community. Public schools are free to the parents of the students who reside within the district you are zoned for. These schools provide the

There are two basic forms of taxation within the United States: progressive, where the effective tax rate increases as wealth or income increases, and regressive in which the effective tax rate goes up as wealth or income decreases.

Sales tax is regressive in nature, and dependent on taxpayers having enough confidence in the economy to spend their money. Sales tax is a consistent form of revenue for school funding, however the yield is inconsistent as the tax is not collected unless merchandise is purchased. Like the sales tax, the sin or sumptuary tax has an elastic yield and is only as stable as the economy. The sin tax applies to tobacco, alcohol and gambling, and is not considered a reliable source of public school funding (Sorenson & Goldsmith, p. 23 2013). Sorenson and Goldsmith describe the lottery as an assessment on legal gambling, and closely related to a sin tax. The public perception is that a state lottery is an excellent source of funding for state education programs, the reality is that the the lottery does nothing to fund educational initiatives. In fact, “there is no evidence that any state lottery has significantly supported or benefitted any school district or, for that matter, public education in

Please describe the concept of “double taxation” and discuss which entity(ies) are subject to this type of taxation. (5 pts)

If taxes are proportional, the tax rate remains constant for any income level, whereas taxes that are progressive, its tax rate gets higher as the income level increases.

1. The income tax system changed. Income taxes when down and sales taxes went up.

A government is responsible in maintaining and improving the country’s structural elements, such as economy, military, agriculture, education and so on. In order to fulfill these responsibilities, the government requires a budget, which it acquires through taxation of the population. In the reading “Why I Like to Pay my Taxes”, Neil Brooks insists that taxes are a good thing, and that they are necessary for society to function, and beneficial in all aspects. He also criticises: people that see tax increase as negative, call taxation a great burden and a restriction of freedom. Neil Brooks shows bias by displaying only the pros of taxation. It is fair to say that arguments with regards to the pros and cons of taxation are a very grey area. The

rates of each political government. When a political government sets the tax rate it is recorded in

In order for a country to finance its government, tax rates are applied trying to distribute those costs as fair as possible. A benefit principle suggests that financing and its rates should be applied accordingly to those receiving a benefit. The ability to pay principle indicates that tax burdens should be applied based on the earning capability of individuals; those that earn more pay more and those earning less pay less.

income is caused not only by the amount of taxes garnished from someone’s paycheck, but also

Public schools get their financing from local, state, and federal government funds. In most cases, they must admit all students who live within the borders of their district. Charter schools and magnet schools are two relatively new kinds of public schools.

This paper examines the generally accepted desirable characteristic of a system of taxation. I describe in this paper that even where every one agrees that the tax system should be simple as dictated by the first maxim of Adam Smith, no country is yet to meet this standard. Questions on policy, complexity, equity, administrative efficiency, cost of compliance all increasing the cry for a tax change. Many Eastern Europeans have adopted the flax tax system and presently has an increase economic growth. However, are they fully operating the flax tax system?

Tax system is a legal system of imposing and collecting taxes from the citizens of the country. As it has been stated by Albert Einstein, the hardest task in the world is to understand the tax system of a country. The United States’ tax system is so complicated that its tax code contains almost 3 million words and 6,000 pages. Moreover, the taxes implied by city and state governments add more complexity to the federal taxation system. In this case, we do not need to understand the complexity of tax code system in order to get acquainted with the significant role of taxes in American society.

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.