State Taxes Vs Federal Taxes Essay

extra spending mostly comes from the high-end taxes that if they weren't being spend would be saved and used to produce

In conclusion, state law and federal law are very similar as, they are each meant to dictate a measure of safety for the citizens of the United States of America. According to the United States Constitution federal law, which is dictated, allows the federal government the power to make laws for the people and for the country as a whole. State laws are meant to allow each state to be allowed to govern them and handle the issues within their states. This power was given to them from the Bill of Rights that was also outlined in the Constitution (FindLaw, 2012).

The federal government and state governments have had a long history of powers struggles. The struggle goes back and forth between who has the right to make decisions and if there is a problem who should fix it. Sometimes it is better for the federal government to fix issues and during other situations it is better for the state or local governments to fix other issues. In the PBS special of the United States Constitution, Peter Sagal travels around the states documenting the various roles and impact the government has on the country as a whole and on the individual states.

The difference between federal courts and State courts is that State courts are usually established by a state themselves and Federal courts are established under the U.S. Constitution to decide disputes involving the Constitution and laws passed by Congress.

In the United States, the top one percent received about 20 percent of the overall income for 2016. This creates an uneven distribution of income causing Americans to argue about whether or not the wealthy should pay more in federal income taxes. One side of the argument is that the wealthy make a huge portion of the nation’s income; therefore, they should have higher tax rates. The other side argues that wealthy Americans already pay their fair share of taxes by paying nearly 40 percent and should not be forced to pay more. These arguments both use compelling evidence to make their claims; however, a solution could be reached by increasing the tax rate of the top one percent by only 10 to 20 percent.

The IRS has a long history of enforcing various form of taxes and a variety of regulation in the United States of America. In fact, federal agencies such as the Bureau of Alcohol, Tobacco and Firearms began as part of the IRS before separation onto its own agency. Below is a brief timeline of the origins of the IRS and subsequent events that transformed it into the agency it is today:

The United States borrows money from individuals that have bought Treasury Bills, Notes, Bonds, and United States Savings Bonds. The U.S. government also borrows money by issuing Treasury securities. These securities finance expenditures that exceed its receipts, and are legal under the authority of the Second Liberty Bond Act. The government's primary source of income is through taxes paid by its citizens. Supposedly, money is spent on programs that government officials consider necessary to ensure the best quality of life for all (or at least the majority) of the nation's citizens. The combination of these amounts is what makes up the national

The federal budget is known as the notorious economic tank from which money is distributed to various programs. The money used every fiscal year, which begins October 1st and ends September 30th the next year, belongs to the people. The government raises this money through taxes and they spend it on national defense, Medicare, and social security. The federal budget is an exercise in making choices, and those options will certainly affect individuals living in the U.S. These choices cause debt to pile up on the government, who is struggling to make it disappear. The deficit and debt of a government gauges how well it is being run and how well it has been run in the past. According to The Economist the national debt is the total

First of all, Property Taxes, Revenues and Interests are worth-based taxes paid on various types of property (e.g. residential and commercial real estate, motor vehicles, farm machinery, etc.). The body charged with tax collection is responsible for taxing authority appraises the

People believe that states that don’t have income tax, pay less taxes than residents of other states with income tax. That is not the case! Every state must generate revenue somehow to pay the state expenses. The truth is that every state makes their money regardless the name or the way they do it. There is no such thing as living on a state that you don’t have to pay or that you pay less, unless you are rich!

Although the federal government has authority over the whole country, states have their particular rights, such as the ability to tax different

No one decides on the total amount the federal government will spend. Instead, legislative bills that determine the total amount of spending are divided up among fifteen separate committees in the Senate and seventeen committees in the House of Representatives. The Appropriations Committee has jurisdiction over non-entitlement programs (spending varies year to year based upon spending authorized by Congress), which covers one-third of total federal spending. The remaining two-thirds is made up of entitlement programs (spending authorized by permanent laws), which are handled by other standing committees. The agricultural committees have authority over farm price supports, food stamps, and other rural programs. The tax-writing committees in the House and Senate are responsible for Social Security and Medicare. The House Energy and Commerce Committee has jurisdiction over Medicaid.

According to Economy Watch (2010), “The intention for imposing Luxury Tax in United States may be for taxing the elite and rich class of people, who can afford to pay some amount of their earnings to the state in the form of tax, and help in making the nation financially all the more prosperous. Recently, the United Sates Luxury Tax is being imposed on goods like perfumes, tobacco, deluxe cars, alcohol, jewelries, and many other items”. Also, luxury taxes have a clear effect on the styles of consuming regarding acquiring more revenue (Economy Watch, 2010). Another essential impact is the need for luxury taxes especially during emergencies when the government needs to increase its income for wars, so the government can handle accomplishing more

Throughout history, taxation on United States citizens has proven to be a necessary component of a growing economy as means of generating revenue for the federal budget. The federal budget funds the many government programs implemented to keep the disabled, elderly, and unemployed from falling bellow the poverty level. Unfortunately, this fund is not always available when catastrophic evens, such as an economic recession, deplete the revenue coming in and create a budget deficit. In order to regenerate money coming in and replace the deficit, the government calls on money gained from taxes. What happens when tax money is already appropriated to other programs? A tax reform. A tax increase has many times been the

yielding results indicative of the substantial amounts of money spent in certain areas. For instance, entitlements. Following the 1960’s, mandatory expenditures have increasingly surpassed discretionary spending. In 2015 alone, The United States spent nearly 104 billion dollars of the mandatory fund on food assistance, 34 billion more than was spent on education for the same year. Unlike discretionary funds, mandatory funds do not go through the annual appropriations process. There is no budget or monetary limitations placed on mandatory funds instead criteria are adjusted to limit or increase the amount of current and future recipients of these funds.