1. What is a progressive tax system? How does it differ from a regressive tax system? A progressive tax system is a system that requires people with higher incomes to pay a greater proportion of their income on taxes. This means that they look for people with really good jobs and make them pay more out of their checks on taxes. Regressive tax systems, are a little bit different. They charge everyone the exact same on taxes. This is your basic tax system.
2. What is gross income? What types of income are included in gross income? Gross income is basically the short version of all you sources of income. The types of income included in this, are other jobs, and investment income, received alimony, unemployment compensation, and so on. These are
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What is a tax audit? What are some different types of audits?
A tax audit is a detailed examination of a return by the IRS. Once asked to the IRS will have you provide information about your incomes, deductions, and other info. Once this happens they will do a check to see if it is true. However, if you took deductions you shouldn’t have, then you might get penalties or fines afterwards. This is why should manage you finances and record them all. A correspondence audit requires a person to respond via mail. An Office audit requires the person to go to the IRS building and give information. Lastly, there is a field audit, where they go to you house and question you.
5. What are two ways that a person's wealth may be taxed? Describe these taxes. A person’s income from a part-time job can be taxed. The way this happens is the person who gives out paychecks automatically takes that money out for tax. So that is money you will never see. Another way, is paying for groceries. When you buy something at the store, the clerk puts a certain tax on every grocery. So this gets added to the original cost of all the food. That extra then goes to
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What are some strategies that you can use to prepare to file taxes each year? What would be the benefits of these strategies?
One strategy would be to write down all your spendings that year. This way you know what you payed for and how much your taxes will be. That way if they say you are missing money for something you didn’t do or use, you can show them the chart and explain the mistake. It’s always good to have notes incase something goes wrong.
2. What are the benefits of taxes for societies and individuals?
Taxes do actually help our society. They help to pay the government, who pays to fix the roads. They also build bridges, and other services. It also helps individuals by giving some jobs as tax collectors, and a paycheck for those in the government.
3. How do taxes influence responsible financial planning? Discuss some examples of how taxes may influence a financial plan.
Taxes influence financial planning by teaches us how to manage our money. If we blow out money on useless junk, we won’t have enough money when taxes come around. However, if we spend our money wisely, and pay our taxes, then we know what to and not to do next time. It teaches us financial
Every printed item was taxed such as newspapers, books, and playing cards. Stamps on these items prove that the taxes had been
When it comes to the research the tax has affected the country in a negative way, simply because the war was fought because of taxes that were seen as not needed as well the fact that the country fought the British to oppose taxes, and then Washington turns around and imposes a tax on the people after what they sacrificed to fight for the right to be free of taxes and to be supportive of their new government was tough because people did not have money to pay taxes at
All American colonists were required to pay a tax on every piece of printed paper used. This includes legal documents, newspapers, and even playing cards. The money collected by the Stamp Act was to be used to help pay the costs of defending and protecting the American frontier. The cost of the Stamp Act was small, but the colonists saw it as offensive when they found out what the money was used for. Taxes were viewed as measures to regulate commerce.
In the late 1800s, the U.S Treasury Department used sales tax and tariffs to fund its federal budget. A tax or tariffs are funds that are paid to the government that are added when something is bought that is considered valuable. Because of the Civil war, there was a financial burden on the country. In 1861, Congress reacted by implementing taxes on individuals. The first income tax started off by taxing individuals 3% making more than $800, while people who made more than that gave up a larger percentage.
It motivates people to have more mindful and wiser spending practices. With a national sales tax, you know that it will cost you more taxes if you spend more. Therefore, you'd think twice before using your credit card and purchasing more than you need. You can also be more motivated to pay off your credit card debts because these payments won't be taxed. List of Cons of the Fair Tax Act 1.
The Income Tax Act establishes the liability for tax and the tax responsibility of Canadian residents. Every resident in Canada is responsible for paying an income tax on taxable income for that taxation year. The taxable income includes that year’s taxable income including any additions and excluding any deductions that are permitted by Division C. It also includes non-residents that held employment, carried on business, or disposed of Canadian property that is taxable. (Income Tax Act). Tax policy plays an important role in making the distribution of post-tax income less unequal.
Arthur Laffer’s model shows that excessive tax rates can actually reduce tax revenue as producers are less incentivised to produce more goods and services; the model also shows that if tax rates are too low or below the optimum level for the economy, there could be a direct reduction in tax
Divya Rathore Mr .Meurs Social Studies The period known as the progressive era was the one of great political and social reform in the united states throughout this era politicians and reformers began the to try to better the lives of americans though legislation and social movements their efforts helped to create a more equal and just society for all the their accomplishments were far reaching and still be felt today. The progressions era, have got to change such as women are fighting to have the right to vote but many people believed that this was irresponsible that it was wrong for them to vote stated in document 1 and with this information it did not stop women from getting the right to vote they work even harder and stronger,
Kaitlin and Richmond, I believe that both of you made valid points about the benefits to the Cadillac Tax. I agree that something sound be done to decrease “luxurious” spending at the cost of other, however I am not sure how this is different wanting to give everyone access to health care unless I have missed something in my understanding. As I stated before, allowing the opportunity to gain access will increase usage and I do not see this being any different other than it is at an increase value. Please correct my thinking if I am missing something. I am not sure exactly what could be done to reduce cost and “punish” those who squander and take advantage of these benefits.
Some people with be mad about getting taxed more and some people wouldn’t mind getting taxed more as long as it is doing something like helping someone that needs help or saving their lives. “About 800 000 people commit suicide every year… Mental disorders and harmful use of alcohol contribute to many suicides around the world. ”(www.who.int) The people I think that won’t like getting taxed the most are people like Lennie and George who are struggling with money as is
The Progressive Era was a time period lasting from the 1890s to the 1920s. The turn of the 20th century was an age of reform, America was experiencing rapid industrialization as well as urbanization, and a flood of immigrants began to arrive from other countries. The Progressive Era was a time of many social and political reforms. During this Era, there were three presidents who all implemented some sort of progressive reform. There was also three new amendments that were added to The Constitution.
I believe taxes affects government economic policy today by increasing or decreasing the amount of money the government makes. The purpose of taxes is to raise revenue to fund the government. Money provided by taxation has been used by states and their functional equivalents throughout history to carry out many functions. Some of these include expenditures on economic infrastructure, military, scientific research, culture and the arts, public works, distribution, data collection and dissemination, public insurance, and the operation of government itself. The different reforms I would like to see are the lowering the taxes on basic goods and increasing it on luxury items.
The inheritance tax brings in around $20 billion for the government, and if it was abolished something would need to replace it. However, compared to the rest of the income the government collects, the death tax brings in almost no money at all. $20 billion seems like a lot of money to the average person, but compared to the $3.2 trillion the government brings in every year, it doesn't amount to much. For example, if the government brought in $100 this year, the death tax would only bring in 63 cents. “Under the Tax Foundation Taxes and Growth Model, a simulated elimination of the estate tax results in approximately 150,000 additional jobs and 0.08 percent additional annual GDP growth in the decade after elimination”(Cole).
The fiscal policy is a government policy, which affects tax rates, interest rates, and government spending in an effort to control the economy. In the fiscal policy we have to focus on volume of government total spending versus total tax revenue collected by government. In this logic government spending could be more than taxation
Before this internship, I was aware of the tax or audit route that professors and accounting recruiters would often ask. I felt that I did not have a large exposure of tax-based accounting, but I did find the federal taxation course interesting. However, I did not believe the tax route would be for me. At that point, I assumed that I would pursue a career in audit. However, that changed when I got this internship and was exposed to forensic accounting.