Taxing Taxation And The Tax System

The federal and state governments provide the American citizens with all of the basic necessities within our communities and society that is taken for granted. Programs responsible for assistance in times of need, providing a quality standard of living, and maintaining the strongest military in the world costs incomprehensible amounts of money and could never exist without taxes from the American people. Taxes are payments made by individuals and businesses to support the government and its services. The constitution grants that congress “shall have the power to lay and collect taxes, duties, imposts, and excises and to pay the debts and provide for the common defense and general welfare of the people”. Taxes paid by Americans redistribute

The Revenue Act of 1862 is the first instance of income tax in America. It imposed a progressive income tax rate on Union citizens in order to raise money for the war effort against the Confederacy. http://money.howstuffworks.com/personal-finance/personal-income-taxes/income-tax.htmThe income tax was abolished in 1872, declared unconstitutional in 1895, and then passed as an amendment in 1913.http://www.archives.gov/publications/prologue/1986/winter/civil-war-tax-records.html Cite everything above! The 16th amendment states “The Congress shall have power to lay and collect taxes on incomes, from whatever source derived, without apportionment among the several states, and without regard to any census or enumeration.” (YOU NEED

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.

The tax system in the United States has changed throughout the years, with many attempts to make it "fair" or "equal" while at the same time generating enough income for the United States government to thrive. It is a complex issue, and a controversial one at that. While it may not be possible for our tax system to ever be fair, it is important to make sure it doesn 't put more financial stress and pressure on one group than on another.

The issue of taxes and different tax systems is arguably one of the most important issues to many Americans. Having an effective Tax Code is definitely important in maintaining a healthy economy; however, there are different perspectives when it comes to the rates and percentages that citizens pay.

One theory about the use of the progressive taxation is that people or businesses who earn the same or a similar amount of money should be taxed in the same or a similar way. A good example of that theory states that two individuals making $75,000 per year should be taxed the same amount, regardless of how they earned their income. While most countries have some form of progressive taxation, it is usually combined with other taxes, such as a sales tax, and few countries treat all income as exactly the same. This kind of taxation is still in effect today, bigger corporations are taxed more than the smaller mom and pop businesses.

In my opinion as to whether or not the current federal income tax structure is fair for most Americans is that it is not fair. The following information will provide support for my decision. The main federal tax brackets are for single individuals, married individuals filing separately, married individuals filing as a couple and individuals filing as a head of household. In the financial year 2014, the lowest tax bracket paid a rate of 10% on income up to $9,075 while the highest bracket paid an average rate of 36.4% ($406,751 and above). Most individuals pay taxes across several tax brackets, and as a result, they end up with the progressive tax structure. In the current progressive federal income structure, individuals with a lower

Taxes is when the state takes a percentage of the money you make to help the community or the state. Also one reason we get taxed is to pay off the government workers. Another reason we get taxed is to pay for the public buildings and public roads we use like libraries, schools, and highways. Finally another reason we get taxed is to help the poor or less unfortunate also to help an organization.

According to vocabulary.com “Taxation refers to the practice of a government collecting money from its citizens to pay for public services”. Our country was practically founded because of differences on taxation. The Stamp Act, Townshend Revenue Act, and most famously the Tea Act of 1773, are a few examples given of the progressive start to the American Revolution. If we can fast forward to 1986, this is the year that President Reagan passed the Tax Reform Act of 1986. Needless to say, the main purpose of the Tax Reform Act was for simplicity. Simplicity in federal tax code than in the pervious generations of tax code, but since passed, I believe the Act has gone through several changes and has now made the federal tax codes a bit more complicated. An idea of the Fair Tax has come in to play as a new way to reform federal tax in the past 10 to 15 years to simplify current tax codes.

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.

In most cases, income tax brackets are progressive, meaning that the greater the income, the higher the rate of taxation. Federal rates for the 2013 tax year range from 10 to 39.6 percent. State and city rates are generally much lower. In addition, many systems allow individuals to trim their tax bill with variouscredits, deductions and allowances. Businesses pay taxes on their net income. In addition to federal income taxes, the U.S. government also mandates that employers subtract payroll taxes from their workers’ paychecks each pay period, and then match the sums deducted. These payments are called FICA taxes because they are authorized by the Federal Insurance Contribution Act.

The United States economy, as known by all, is not in its best shape. One way in which the government gains money is by imposing taxes on people. There are many taxes that are placed on different things that everyone needs or already has. The United States uses a taxation system which is criticized by many. The system used in Progressive Tax; however, many people believe the system of Flat Tax, or Proportional Tax, should be the system that is used for taxing.

Taxes are the dollars that we pay to government to supply the services that are not or can not be provided through the free enterprise system. Taxes have been around since the beginning of organized societies. They come in various forms. Most common are income taxes both federal and local government. These taxes are assessed on the amount of income a person earns. Other taxes come in the form of user taxes; these taxes are imposed on the people that are using the goods being taxed, such as gas tax, alcohol tax, sales tax, and luxury taxes. Property taxes make up the major revenues for local and city governments. Furthering the burden of taxation are taxes that are attached to such bills as utility

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.