Verified Document

Revenue Controversies Public Budgeting Essay

American Tax Payer Act The present taxation system for the United States is a progressive tax on income of individuals, businesses, trusts and estates. While the first Federal income tax was opposed during the Civil War and then again in the 1980s to pay off war debt and reconstruction, it was not until the 16 the Amendement in 1913 that placed a Federal tax as Constituional law. The basic outline of the Federal tax is quite simple -- gross income less exclusions and exemptions and standard deductions equals taxable amount. The taxable amount is based on family size, and varies based on filing status. The complexity arises, however, in the manner in which deductions are interpreted, tax law changes to allow certain items to be deducted, and then changes that law (e.g. credit card interest), or ways in which complex tax structures are legally able to "hide" or "defer" income from being taxed in that particular year (McCaffrey, 2006).

Certainly, most agree that governments must have a way to earn revenue...

However, after decades of debate and one of the most complex tax codes in the world, the U.S. System does not necessarily work for everyone. For instance, in January 2013, the Senate and House both retroactively passed the American Taxpayer Relief Act of 2012 (ATRA), that permanently extends a number of major tax provisions and temporarily extends many others. The gist of the program offers a number of provisions designed to help middle and lower-middle class Americans keep more dollars:
Tax rates -- Most individuals will pay the same basic rate, based on income, but in 2013 those with income exceeding $400,000 for individuals and $450,000 for joint filers will have an increase in rate to 39.6%

Alternative Minimum Tax -- Permanently extends provisions that all nonrefundable personal income tax credits to be used to offset AMT liability.

Estate Tax -- Makes permanent the $5 million exemption amount for estate, gift, and generation-=skipping transfer tax. The top…

Sources used in this document:
REFERENCES

A Roadmap to the 2013 Federal Budget Debates. (2013, March). National Women's Law Center. Retrieved from: http://www.nwlc.org/resource/roadmap-2013-federal-budget-debates#_edn3

The American Taxpayer Relief Act of 2012. (2013). JST Investment Consulting. Retrieved April 2013 from: http://www.jstinvestmentconsulting.com/2013/01/the-american-taxpayer-relief-act-of-2012/

Huang, C. (2013). Buget Deal Makes Permanent 82% of President Bush's Tax Cuts. Center on Budget and Policy Priorities. Retrieved April 2013 from: http://www.cbpp.org/files/1-3-13tax.pdf
Cite this Document:
Copy Bibliography Citation

Related Documents

Public Budgeting Public Schools Are
Words: 922 Length: 3 Document Type: Essay

Property tax relief is a subject that arises when the elderly or poor struggle to meet their property tax burdens. If they are long-term residents, they can be caught up when their neighborhood sees a dramatic increase in property values. There are sometimes mechanisms that governments use in order to provide relief. Both tax credits and rebates can be used to help return some of the money paid or that is

Public Administration Budgeting an Important
Words: 1698 Length: 5 Document Type: Essay

Six Steps in the Budgeting Process. Bottom-up vs. Top-down Budget Plans, 2010). The budget rules that are prepared by top management are passed down through successive levels within the company. Managers at each level may make additions and offer greater detail for their subordinates. The managers at each level prepare the plans for items under their control. The budgeting process will caution management of possible problems that may occur. By

Public Administration the Merit Pay
Words: 6250 Length: 19 Document Type: Term Paper

This sentiment is echoed by a lot of supporters of merit pay who believe the way teachers are paid and how much they are paid must differ if districts are to attract a new cohort of teachers" (Drevitch, 2006). Some of the biggest disputes against merit pay have all been disputed previously, in the 1980's. In the 1980's, global rivalry was undermining U.S. businesses and corporations, and in an attempt

Underestimation of Revenues: Review of Revenue Estimates
Words: 3322 Length: 10 Document Type: Term Paper

Revenue Estimates: Underestimation of Revenues Although the United States has an excellent budget policy, she is yet to reach maximum efficiency with regard to revenue estimation. When it comes to public budgeting, ours is a picture that is far from the ideal. There has been a consistent pattern of underestimation of revenues in federal, state, local, as well as agency budgets. This trend may not be desirable for a recovering

Public Administration and Considers the Effect of
Words: 2154 Length: 8 Document Type: Term Paper

public administration and considers the effect of their writings and theories on the field of public administration. It has 6 sources. An analysis of the core areas of public administration and how these areas interrelate with one another; taking into account the theories and writings of major players in the field of public administration and how their views shaped these areas. The principles of public administration are the clearest description of

Budget Process for Las Vegas Metropolitan Police
Words: 1499 Length: 5 Document Type: Research Paper

budget process for Las Vegas Metropolitan Police Department (LVMPD). LVMPD was formed in 1973 as a result of the merger of the Las Vegas Police Department with the Clark County Sheriff's Department. LVMPD serves the city limits of Las Vegas along with unincorporated areas of Clark County. LVMPD is funded by the City of Las Vegas and Clark County. Police department funding is based on a complex formula determined by

Sign Up for Unlimited Study Help

Our semester plans gives you unlimited, unrestricted access to our entire library of resources —writing tools, guides, example essays, tutorials, class notes, and more.

Get Started Now