Abstract This paper examines the United States' federal incometax, its history and its implications. The author argues that reforms need to be made as the constant amendments, additions and modification to the law has made it so complicated that it is now costly to sustain it both from the view point of the taxpayers and the view of the establishment even though the tax is the most revenue earning source for the federal government.
Table of Contents:
Introduction
The Nature of Federal IncomeTax The Federal IncomeTax, History & Implications
Issues in the Taxation process
The need for reform
Conclusion
References
From the Paper "Federal taxation is the major factor of funding for the US government. In other words the existence of the Federal government is based on the generation power of its tax policies. The federal government relies on a number of tax instruments; the chief being income tax, the government also relies on excise tax, gift tax and so on. Business decisions are often made without considering the incidence of tax, which proves to be erroneous. Individuals are concerned with personal income tax while corporate ought to be concerned with the corporate income tax. Cost difference exists even between the different types of business entities like companies, partnership and proprietary concerns."
Abstract After beginning by acknowledging that complexity is a major problematic feature of modern tax legislation, this essay proposes that the issue of reducing complexity and increasing simplicity be the main benchmark against which three discussion areas - The TaxLaw Rewrite Project, The Tax Structure Review Programme and Parliamentary Reform - be critically examined in order to assess the extent to which they have improved, or could potentially improve, the making of taxlaw.
From the Paper The suggestion that tax law should be 'simple and certain' is by no means a recent one; indeed it was one of Adam Smith's well known canons of taxation in his Enquiry into the Wealth of Nations of 1776 that this should be so . In spite of this, increasing complexity over the years appears to have been the norm for tax legislation. But what is it that makes it 'complex'? Adam Broke identifies it as manifesting itself as four individual factors: diversity (that the range of taxes is so broad that no one can claim to have an in depth competence with them all); volume (with the physical number of pages that make up the annual finance act growing significantly each year); drafting (with legislation being expressed in a way that is - at best - "unhelpful to the reader"); and finally, language (with the legislation being full of words that are not a part of modern ordinary vocabulary).
Abstract This paper discusses the incometax controversy that exists in the State of Florida. It explores the subject of Florida adopting a personal incometax and examines several economic implications regarding the social costs and benefits of Florida's legislative and fiscal policies. The paper discusses the options for Florida in terms of whether they should adopt a personal incometax. The paper contains tables.
Table of Contents:
Introduction
In Florida...
A Balanced Tax System
IncomeTax Considerations
Perks Accompany the Lack of a Personal IncomeTax The Tax Revolt
Chronology of EIG Tax Elimination
IncomeTax Proponents, Opponents and Components
No Other Answer...
From the Paper "In response to the 2006 Florida Government Accountability Act, consistent with Florida TaxWatch, Florida state legislatures imposed substantive and procedural modifications to reportedly increase effectiveness, efficiency, and accountability among agencies, boards, and commissions. To produce good decisions for Florida taxpayers, this enhanced legislative understanding of agency needs and activities reportedly proved to be a valuable byproduct of the act. Florida Tax Watch warns that good intentions, such as those which led to the 1994 Ac passing, must be enhanced by the link of a sustained commitment of time, interest, and consequential actions on the part of legislators. ("Making Florida's Latest Government", 2006)"
Abstract This paper investigates whether and how the federal incometax receipts change given the overall tax rate for individual incometaxes. The paper also investigates whether the tax receipts exhibit a diminishing return as marginal tax rates increase. The paper concludes that there exists a meaningful relationship between the marginal incometax rate and the marginal incometax receipts.
Outline
Introduction
Model
Model Results
Initial Model
Alternative Model
Alternate Model End Notes
Initial and Alternative Model Results
Data Mining
Data Mining Results
Conclusion
Appendix A: Figures
Appendix B: Data Sources
From the Paper "Now, disregarding all the statistical minutia that may or may not be relevant the author will make the following observations regarding the alternate model. This model is depicting the predictive power of the variance of the marginal individual income tax rates among all five income quintiles to the income tax receipts at the federal level. It is apparent from the model that nearly a quarter of the variation in the marginal tax receipts can be predicted through the marginal tax rate, ceteris paribus."
Abstract This paper explores the issues and history of corporate taxation. Corporations are taxed at a rate depending on their income. This paper discusses the pros and cons of dropping the corporate tax, the methods which can be used to drop or lower corporate taxes and why. The paper includes charts and statistics concerning corporate taxes.
Table of Contents
I. The Beginning of Corporate IncomeTax II. The 1986 Tax Reform Act
III. How Does Taxes Affect Business
IV. Corporate Tax Rates
V. Decline of the Corporate IncomeTax VI. Why the Wide Range Between State and Corporate Taxes VII. How Does Corporate Tax Work with Multi-state Manufacturers?
VIII. Does the Corporate Tax Help
IX. Proposals of Corporate IncomeTax X. Need of Stimulus
XI. Future Research Concerning Corporate Taxes XII. Conclusions
XIII. Works Cited
From the Paper "Where did the corporate income tax begin? How does it affect our economy? What is the future of the corporate income tax? Will deleting corporate income tax be the answer for the economy? What about cutting part of this tax? How does the corporate income tax help the economy? These are questions that will be answered in this paper as well as how the corporate tax is affecting our economy now.
The Beginning of Corporate Income Tax
"How the corporate tax began is an example of why tax systems can be worse than they should be and how little influence the economic profession has on government policy (Norton 2). Sometimes ideals look great when they are not that sound. Corporate taxes were used during wartime until 1909, when Congress enacted a 1 percent tax on corporation income. The rate increased until 1932 to 12.5 percent when the rate was changed to the progressive rates. Norton stated, ?Surtaxes on corporate income were added for "excess profits" during both world wars. The highest peacetime rate, 52.8 percent, was reached in the sixties? (2). "
Abstract This paper looks at the low incometax credit and how many believe that the federal government should do more to help the working poor gain access to affordable housing. It defines and describes the low income housing tax credit in order to explore the advantages and disadvantages presented by such a system.The author discusses how the current plan is extremely convoluted, making it difficult for developers and tenants to comply with.
From the Paper "According to a report entitled The Low Income Tax Credit published by the Internal Revenue Service the low-income housing tax credit was created by Congress to promote the construction and rehabilitation of existing rental housing for the working poor in various neighborhoods throughout the United States. Congress also believed that the credit would raise the quantity of rental housing for individuals whose income is at or below certain income levels. 1 The report also states that another purpose behind the advent of the tax credit incentive, was the realization that it may be difficult for a private developer to collect rental income that was adequate enough to, pay the expenses associated with the development and maintenance of the housing, or to generate a return on investment adequate enough to produce the capitol needed to fund real estate projects."
Abstract This paper employs the Haig-Simons definition of income and defines the arguments for and against including dependent children in an incometax system. It then assesses 1993 changes to the Canadian incometax system regarding dependent children.
Abstract This paper examines the progressive incometax as a policy designed to redistribute income in Canada. It describes the mechanism or process, evaluates it and proposes alternatives or amendments to the current system.
A persuasive essay arguing that greater outreach and simplification efforts are necessary if the earned incometax credit (EITC) program is to have its intended economic impact.
Abstract The paper discusses how the earned incometax credit (EITC) program could contribute more significantly to the American economy. The paper first explains that a large percentage of eligible filers forego an opportunity to claim the EITC because of misunderstandings and complexity issues, while others will only file claims through professional tax preparers who receive most of the credit earnings. The paper calls for greater outreach and simplification that will result in more Americans filing claims and realizing the potential of the EITC.
Outline:
The Economic Benefit
Impediments to Full Economic Benefit
Outreach: Benefits and Shortcomings
From the Paper "Enacted in 1975, the federal earned income tax credit was the largest tax-relief effort ever directed at America's lower-income demographic. The EITC, which is targeted at individuals and families to help them offset rising living expenses, can wipe out a filer's tax liability, and often result in a refund -- even if the filer paid no taxes during the year ("It's easier than ever," No date). Throughout its 30 years of existence, the EITC has been credited with helping raise millions of Americans out of poverty, and has contributed hundreds of billions of dollars to the American economy. While the economic impact of the EITC has been mostly positive, there are still several impediments that are preventing its full value from being realized. Each year, millions of potential filers do not claim the EITC because they are under-educated on how it works or because the process is too complicated."
Abstract This paper describes in detail the advantages of the Florida incometax system. It outlines its history and presents a general point of view through a report excerpt.
Abstract This paper will discuss how the public and press is reacting to the complexities of the new taxlaws recently passed. By understanding how these laws make it harder for the common person to get breaks on taxes, we see that the language of lawyers seems to be preventing the people from utilizing their rights. This is the angle of the study, which will seek to understand how the public and the media is comprehending this confusing dilemma.
Abstract This paper summarizes and analyzes a case of TaxLaw involving the State of New Jersey, Department of Taxation, The State of New Jersey Court and the State of New Jersey Supreme Court verses Allied Signal, Inc., as Successor In Interest to the Bendix Corporation. The paper explains the core issue of the case and the rulings of the State of New Jersey Court and the State of New Jersey Supreme Court. The paper also discusses points of technical interest of the case and opinions of individual Justices of the Court who presided over the case.
From the Paper "The State Court of New Jersey upheld the Director, Division of Taxation in the dispute whereupon it was appealed to the Appellate Court of State of New Jersey. The Appellate Court of New Jersey upheld the ruling of the lower Court whereupon the case was granted appeal to The Supreme Court of the State of New Jersey. The Supreme Court of the State of New Jersey upheld both the Appellate and lower Court whereupon Allied Signal wound the case through the Federal Tax Courts all the way to the Supreme Court of the United States."
This paper discusses the history of taxation in the U.S. and a proposed national retails sales tax and concludes in favor of these new systems of taxation.
Abstract This paper explains that, as proposed, the national sales tax (also called the Fair Tax) would be a 15 percent sales tax on the final purchase of goods and services at the retail level and would include the abolishment of the Internal Revenue Service. The author points out that some of the arguments for the Fair Tax are that all Americans will take home their entire paycheck resulting in revenue neutrality and that there will be no tax on business inputs. The paper relates that some of the arguments against the Fair Tax are the fear of burdening the poor who spend most of their income on retail in contrast to the wealthy who invest much of the income, and the cost of implementing a system of controls.
Table of Contents:
Objective
Introduction
History of U.S. Taxes and TaxLaw War of 1812 - The First Sales Tax Civil War Effort - The First IncomeTaxLaw Congress Rules IncomeTaxes as Unconstitutional
The Sixteenth Amendment - IncomeTax made Permanent
World War One
The Great Depression
World War II - Transformation of the Tax System
1981 - The Largest Tax Cut Ever
Yearly New Tax Acts - 1986 through 1990
Tax Acts of President George Bush
World Trade Organization Rules Corporate Tax Provision Illegal
The National Sales Tax Three Major Proposals - Alternative Reform Initiatives
Another View of the NST
Gregory (2004) agrees with Crawford (2005) most emphatically
Another Vote for Real Reform
Primary arguments of Fair Tax proponents are as follows:
Primary Arguments of Those Against the Fair Tax Knowledge to Assist in the Comprehension of the Fair TaxLaw The Views Expressed by 'The Ways and Means Committee - Washington"
Regressive Tax System Characteristics
Discussion
From the Paper "The proposed 'national sales tax' would be the replacement for the personal income tax, corporate income tax, and estate and gift tax and would have an impact on the U.S. economy, the national standard of living, the cost of compliance and the degree of intrusiveness of the tax system in the lives of U.S. citizens. The NST would stand in the place of all individual and corporate income tax, transfer taxes, as well as most non-trust fund excise taxes with a single 15 percent flat-rate tax on the purchase of final goods and services at the retail level. The rate of 15% would be applicable meaning that an item costing $.85 would cost a total of $1 including tax. he present income tax system in the U.S. has several defects. The National Sales Tax plan is purported to be the answer for correcting those defects."
Abstract This paper examines how most social workers, politicians and those of the general public who support the welfare state do so in part because they believe welfare programs help to reduce the rate of poverty. It looks at how a growing number of critics assert that such programs in fact fail to decrease poverty, because too small a share of transfers actually reaches the poor, or because such programs create a welfare/poverty trap, or because they weaken the economy. It proposes a study to assess the effects of social-welfare policy extensiveness on poverty rates.
Outline
Discussion
Pros of Raising IncomeTaxes to Redistribute Income to the Poor
Cons of Lowering Taxes and Reducing the Amount Available for Income Redistribution.
Pros of Reducing IncomeTaxes Cons of Reducing IncomeTaxes Proposals
Ways of Funding Social-Insurance (Welfare) Programs
Conclusion
From the Paper "Reducing the amount of transfer payments ultimately will increase levels of both poverty and the maladies that are associated with it. Infant and child mortality, increased crime, lack of participation in society in general, and increased medical expenses born ultimately by society can all be the results of decrease social spending (Center on Budget and Policy Priorities web site). To quote a study by the Center on Budget and Policy Priorities: ?Social insurance programs moved 1.4 million children out of poverty. Federal taxes, including the Earned Income Tax Credit, (EITC), lifted another one million children out of poverty. It is striking that taxes were nearly as effective as social insurance programs in moving children out of poverty because taxes alone would be expected to increase rather than reduce poverty."
Abstract This paper describes the successful management of the fiscal policy of the European Union (EU) through its cooperative body of subsidiary member states called the Economic and Monetary Union (EMU). The paper points out that the main aspects of the European Union's fiscal policy is balance and cooperation. However, the paper also that many member states within the EU are solely responsible for their own incometax structures as long as such programs are given a green light by the governing bodies of the EU. This paper examines various tax systems used in these EU member states.
Table of Contents:
European Union Fiscal Policy
Personal IncomeTaxes with the European Union
From the Paper "Many systems found to be popular spread throughout the EU based on the success of other major economies within the union. This shows that income tax policies "are driven by policy trends in the international community." This means that rather than the system depending on internal variables as it was designed to do, it is turning towards external political factors. Therefore, as the flat tax system gains popularity throughout the Eastern sector may in fact spur future changes within the Western portion of Europe."
Tags: balance regulations cooperation, flat tax, tier systems
