The Tax System Of The United States - 854 Words

Tax System 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. Role of Political Leaders In addition to economic issues, taxation is also a political issue. Political leaders formulate tax policies to bring reforms in the taxation system in order to promote their agendas. The major tax reforms include: increasing or decreasing the tax rate, imposing new taxes on certain products and changing the definition of taxable income. It is evident from the research studies that no one deliberately wants to pay taxes. U.S’ tax policy reflects expression of influence - i.e., those who have power are successful in paying low taxes and their burden is shifted to people who have no power. Therefore retired individuals, small business owners and farmers find ways efforts to reduce their tax burden. Since its existence, tax policy has been enormously used for promoting political and economic agendas. Structure of Taxation The system of taxation inShow MoreRelatedThe Tax System Of The United States1597 Words   |  7 Pagesand services is provided by the government for the people. Taxes in the United States can be originated all the way back to the 1760s. The current tax system the country has is a progressive tax. A progressive tax is a taxation system where higher incomes get taxed at higher percentages than those with lower incomes. The tax system that has been proposed that the economy should switch to is a flat tax. A flat tax is a system where all income would have to pay the same percentage towards taxes regardlessRead MoreThe United States Tax System1576 Words   |  7 PagesThe United States tax system has an extensive history that has transformed from a modest system to a complex taxation system over the years. From the beginning, the tax system has undergone changes due to past wars, inclusion of social programs, changes to social programs, presidential views, and ec onomic fluctuations. Every tax year, the tax laws continue to change from the methods of the past. In the years of the 1600’s and the middle 1700’s, the English settlers were the dominant people whoRead MoreThe Tax System Of The United States1553 Words   |  7 Pagesfunds certain actions and services provided by the government for the people. Taxes in the United States originated in the 1760s. The current tax system the country has is a progressive tax. A progressive tax is a tax system where higher incomes tax at higher percentages than those with lower incomes. The tax system that was anticipated that the economy should switch to is a flat tax. A flat tax is a system where all income would pay the same percentage towards taxes regardless of how much money theyRead MoreThe Tax System Of The United States1597 Words   |  7 Pagesactions and services is provided by the government for the people. Taxes in the United States originated all the way back in the 1760s. The current tax system the country has is a progressive tax. A progressive tax is a taxation system w here higher incomes get taxed at higher percentages than those with lower incomes. The tax system that was anticipated that the economy should switch to is a flat tax. A flat tax is a system where all income would have to pay the same percentage towards taxes regardlessRead MoreThe United States Tax System1487 Words   |  6 PagesPolitics is the process in which negotiation and resistance is utilized to establish a stable society. In contrast, the current United States tax system fails to form such solid grounds. Without such a complex system, anarchy and chaos will overrule the goal of fairness that is favorable to people. Taxation is a branch of politics that is distorted in some ways in which it does not satisfy many people’s needs. Although a government is designed to run an organized society and meet the needs of citizensRead MoreThe United States Tax System1799 Words   |  8 PagesPast Influences, the United States Tax System The Power of Tax Franklin D Roosevelt once said â€Å"Taxes, after all, are dues that we pay for the privileges of membership in an organized society†. Though the word, tax, itself has so much power the basic definition is to asses a fee against a citizen person, property, or activity for the support of the government (Tax, n.d. , para. 2). Just mentioning taxes as a headliner on a newscast will draw the public in to listen to the news. The word is unescapableRead MoreThe Flat Tax System Of The United States Essay1663 Words   |  7 Pagestaxes. With this being said, the United States has adopted a progressive tax since its very existence. We believe that if our nation is placed under a flat tax system, our economy will operate more effectively. If we incorporate a flat tax system we will be able to ensure fairness among all citizens, eliminate tax loopholes, and allow opportunities for business expansion. With this being said, we will be examining the strengths and weaknesses about the flat tax system and how it has been used into practiceRead MoreThe Progressive Tax System Of The United States Essay2092 Words   |  9 Pages There is an issue that has plagued the United States even prior to the founding of the nation. That issue is fair taxation. While the American Colonists were being taxed unfairly without parliamentary representation, average modern Americans are being taxed unfairly without legal representation. Some hold the belief that the progressive tax code employed by the United States to be fair as the wealthy pay a higher marginal tax rate. The operative word there being marginal. As the upper class typicallyRead MoreThe United States Tax System and Flat Tax Essay1892 Words   |  8 PagesThe United States Tax System and Flat Tax The United States tax system is in complete disarray. Republicans and Democrats agree that the current tax code is complex, unfair, and costly. The income tax system is so complex; the IRS publishes 480 tax forms and 280 forms to explain the 480 forms (Armey 1). The main reason the tax system is so complex is because of the special preferences such as deductions and tax credits. Complexity in the current tax system forces Americans to spend 5.4Read MoreProgressive Tax Systems in Europe and the United States1135 Words   |  5 Pagesprogressive tax would be the perfect tax structure to choose. This is a system where the tax rate increases as the taxable base increases as well. As we recall from history, President George Bush had enacted a tax cut from 2001 – 2010. Over this ten year Americas wealthiest had received tax cuts totaling almost half a trillion. By 2010 while Bush’s tax reductions were still in place 52 percent of the tax cuts had gone to the 1 perce nt richest whose average income was 1.5 million â€Å"Their tax-cut windfall