Taxation And Its Impact On Society 's Society

808 WordsMar 14, 20154 Pages
There are many things in today’s society more popular than the unpopular than taxation. The federal, state, and local governments impose taxes on income, property, retail sales, and commerce. In the United States, one of the agencies responsible for collecting taxes is known as the Internal Revenue Service (IRS). Taxes are typically collected on the basis of commercial transactions. Typically, most taxpayers understand that taxes are used to fund government programs and projects at the federal, state and local levels and can include police, schools and roadway repair to national security, international trade and support of the elderly (Raabe, Whittenburg, Sanders, & Gill, 2012). It shows that taxes do play an integral role in today’s society. With this in mind; taxes are generally viewed as a necessary evil. Tax Planning The reluctantcy in accepting taxation does not mean; however; that individuals and businesses alike will not search to find ways minimize their tax liability. In the effort to find different ways to avoid paying unnecessary taxes is at the core of tax planning. Individual taxpayers, for example, will try to find ways to alter their adjusted gross income (AGI) (Raabe, Whittenburg, Sanders, & Gill, 2012). The AGI is one of the main areas looked at by taxation agencies which means that majority of tan individual’s financial assets are split into non-taxable funds such as retirement funds or tax credits (Campidonica, 2014). Tax Strategy When developing a tax
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