Taxes
Tax laws affect taxpayers because they create the taxpayer and govern all aspects of the taxpayer's obligation to the state. Without tax law, there would be no taxpayer; it is the tax laws that create the obligation to pay taxes, and the punishments for non-payment. Tax laws establish who pays taxes, at what rate they pay taxes, the punishments for late or non-payment, and the establish the tax collection body (IRS) and grant that body the authority to run the tax system. Taxation is one of the major ways in which the state can influence behavior in a democratic country. States have long reserved the right to taxation, and the exclusivity of this right has been a feature of government for centuries. Today, there are usually specific rules regarding what layer of government can levy taxes for what purpose. Taxes have different names, too, including excise taxes, income taxes, capital gains taxes, and property taxes. The essential component of any taxation system is that the state has a right to charge a tax of some amount on just about any asset a person owns, acquires or transfers. Taxes are part of the implicit social contract in a society where government uses taxes to provide essential public goods to the people under their jurisdiction.
Once the basic taxation system is established, the body of tax law serves to govern every aspect of taxation. Tax law includes a number of different elements, including the different incentives, deductions and other elements. First, taxable income is defined as the starting point. What sorts of income are subject to taxation, and at what rate, is something that comes from tax law. Governments use tax law to create incentives for specific economic activities. For example, capital gains are taxed at a different rate compared with dividends. That incentivizes companies to pursue growth, which results in capital gains, rather than to seek stability and high dividends. Tax policy is therefore used to advance specific objectives that government has.
This has an impact on taxpayers, because they are ultimately the ones whose actions are subject to taxation incentive. For an individual taxpayer, this is reflected in a number of policies that seek to influence decisions. Where there are tax rebates or other incentives for having children, people may have more children. Being able to write off mortgage interest encourages people to purchase houses, especially when rent is not subject to the same tax benefits....
Tax systems are an important and integral part of any economy around the world. Taxes are imposed by the governments on various activities and it eventually becomes an important source of revenue generation for the governments. Governments use tax revenues in order to finance their public expenditures. Besides that taxation systems are also a very important tool for the governments in order to influence the aggregate demand and consumer expenditures
tax system of one country with that of another is an exercise fraught with dificulties and ultimately doomed to failure . tax system will never be much more than a reflection of strongly national cultures and forces. discuss this statement in the light of your knowledge of comparative tax system in developing and/or developed countries i Tax Systems The following pages focus on analyzing the factors of influence on different countries'
The consequences of tax refunds, for tax payers, include larger fractions of billable fees being billed to the client, then when they owe additional taxes. This is true even with the tax liability itself is constant. This finding goes beyond the commonly understood consequence of overpaying taxes -- a loss of investment income, by giving the government an interest-free loan. An additional wealth-related consequence is the higher preparation fees those
Taxes An evaluation of two types of taxes: Sales vs. income Sales taxes are invariably regressive taxes. Poorer people use a larger percentage of their taxes for consumption-related expenses, so they pay proportionately more of their income in sales taxes. For the wealthy, more of their spending is concentrated in savings and investments, since they can save a larger proportion of their income and still meet basic expenses. Of course, given that
Thus, the per capita tax revenue is presented in Table 5. Table 5: Ratio: Per Capital Tax Revenue ($Million) New York Activities 2010 2009 Tax Revenue $58,039 $55,804 Total Population 19,378,102 19,378,102 Ratio: Per Capital Tax Revenue $2,995: 1 $2,880: 1 Pennsylvania Tax Revenue $28,300 $27,600 Total Population 12,702,379 12,702,379 Ratio: Per Capital Tax Revenue $2,228:1 $2,173:1 The findings from table 5 reveal that both states record increase in per capital tax revenue at the end of the fiscal years 2009 to 2010. In the New York, the government realizes ratio of $2,880 per
The general fund collects over 86% of the total tax revenues and is the primary funding source for most commonwealth agencies. General fund tax revenues The largest significant source of tax revenues net of refunds is personal income tax. Reported personal income tax accounts for 38% of all tax revenues reported. Sales tax, which represents a tax on various items purchased by consumers, is the second largest category. Reported sales tax
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