The Tax Reform Act Of 1997

The current tax policy in the United States is very confusing and it is very costly for our government to administer it. It is in the best interest of our country and its citizens to revise or replace our current tax policy.

interest in the company. On the one hand, they can enjoy tax efficiency by paying tax of

period to complete each in-class quiz. Each quiz will be graded based on 50 points.

The current tax code for the United States is almost 74,000 pages long. Or to put that into a different light: About 116 copies of Herman Melville’s Moby Dick. It is small wonder that a few of the announced candidates for President of the United States, have again begun to kick the tires on the topic of a Flat Tax. But is a flat tax actually a solution to our country’s growing tax complexity? What are the potential economic effects of a flat tax (both positive and negative)? Finally, is a flat tax even a viable solution? In short, will it work? As a concept, a flat tax is spectacular. Simplicity at its finest. As a fiscal policy, I believe that same simplicity must be examined and inspected closely.

Once a gain or loss is recognized, a taxpayer must determine how the recognized gain or loss affects the taxpayer’s tax liability. The character depends on a combination of two factors: purpose or use of the asset and holding period. The purpose or use of the asset is important because the law does not treat all assets equally. The general use categories are: (1) trade or business, (2) for the production of income (rental activities), (3) investment, and (4) personal. Based on these criteria, we can categorize an asset into one of three groups: (1) ordinary, (2) capital, or (3) section 1231. Characterizing the gain or loss is important because all gains and losses are not equal. Ordinary gains and losses are taxed at ordinary income rates, regardless of the holding

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

The Health Care Reform Act was designed to benefit the citizens of the United States. Thanks to the Affordable Care Act, 3.1 million more young adults have health insurance on their parent’s plan, three million seniors have received a 50 percent discount on their prescription drugs, and millions of Americans now have access to no-cost preventive services to help them stay healthy. Abusive insurance practices are becoming a thing of the past. Additionally, the Affordable Care Act helps small businesses with the cost of providing health insurance for their employees and helps doctors and other health providers care for their patients more effectively. (http://www.whitehouse.gov/healthreform/relief-for-americans-and-businesses)

The Health Care Reform Act is also known as the Affordable Care Act (ACA) was signed into law by President Barrack Obama on March 23, 2010, (Touhy & Jett, 2014, p. 111). Its goals are to expand coverage, control health care costs, and improve the health care delivery system. It focuses on health promotion and greater emphasis on preventive care. The new legislation allows people and small businesses to purchase health insurance coverage through the health insurance market places—a virtual insurance mega mall where private insurers compete for business. The market exchange ensures that insures follow strict guidelines and compete fairly allowing people the opportunity to compare plans that best suits their needs.

President Reagan worked skillfully to pass his legislation in congress. He was successful in passing legislation with a Democrat majority house, including increasing the defense budget at a time when the Soviet Union's power was waning. Congress passed many of Reagan's proposed cuts in domestic programs. During his presidency, much of the funding of government programs were cut. President Reagan also was able to get many major tax cuts passed in Congress. The Tax Reform Act of 1986 was one of those major tax cuts passed. The law simplified the tax code by reducing the number of tax brackets to four. The law also lowered the top tax rate from 50% to 28% and raised the bottom tax rate from 11% to 15%. Because of this bill, six million poor Americans

The Taxpayer Relief Act of 1997 (TRA97) established two education tax credits: the Hope Tax Credit (currently modified as the American Opportunity Credit by

The American Taxpayer Relief Act of 2012 created a combined estate and gift tax rate of 40% while raising the estate tax exemption to $5.43 million in 2015. The gift exclusion stays at $14,000 in 2015. These changes generate some estate-planning benefits that most people haven’t yet realize. For example, many wealthy people didn 't bother trying to minimize capital gains in the past because the lower tax rate of 15% was better than paying 50% in estate taxes. Now people can benefit by choosing which assets they keep until death more carefully. Appreciated assets can be held until death and might fall within the $5.43 million exemption. This could be especially important when realizing capital gains could be subject to a higher, nearly 24%

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

Taxation is a levy or a charge imposed by a government on its citizens to raise revenue that finances public spending. The government of every country of the

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.

I’ve summed up the introduction of Taxation to these slight words. Taxation is defined as a way that the government able to generate or collect revenue from the citizen of one’s nation through different sources. As what I’ve learned from Taxation course that there are two types of taxation, direct which are paid by the taxpayer directly to the government, and indirect which are collected by an intermediary (like a retail store) from the consumer. The intermediary who will file the tax return later and forward the amount of the money to the government with the return. This tax is applicable to organizations and individuals. In this reflection, I would like to highlight what I learned of business and individual taxation, the experience on working with a group for the project and what challenges I faced and how I was able to get past.