Taxation Of The United States

1656 WordsNov 10, 20167 Pages
Tax is an amount of money that a government requires people to pay according to their income, the value of their property and that is used to pay for the things done by the government. It is a charge usually of money imposed by authority on persons or property for public purposes. According to random history website, the history of taxation in the United States begins with the colonial protest against British taxation policy in the 1760s, leading to the American Revolution. The independent nation collected taxes on imports (tariffs), whiskey, and (for a while) on glass windows. Taxation started to help pay for Civil War in the U.S in July 1861. In 1913, before the start of WWI the current income tax system was turn in to law and at the same time federal form 1040 was introduce. Every U.S citizens and permanent residents with a net income of $3000 or more are required for file tax returns. Tax returns it is important that a taxpayer identifies the tax form that best suits their needs in terms of financial and legal conditions. Filing the correct form will ensure that the IRS works on the taxpayers tax returns in a timely and accurate manner (Perez) Some of the widely used tax forms for filing income tax for individuals are 1040EZ, 1040 A and the 1040. Taxes influence both individuals and economy as a whole. Main sources of the tax receipts are individual and corporate income. No matter whether we are rich or poor, we always like to reduce our tax. Furthermore, we need a tax
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