...the space provided below. When finished, submit to the DropBox. Chapter 1 (5 pts) 1. Briefly discuss the purpose of the Sixteenth Amendment. The sixteenth amendment, which was passed by Congress in 1909, grants the power to collect federal income taxes (Smith et al. 2015). Congress is given the authority to collect tax on any source of income, whether directly or indirectly. All individuals, and businesses, are required to pay federal taxes. Prior to the sixteenth amendment, Congress was only able to levy tariffs on imported goods. Congress tried to tax individuals on their property for additional revenue, but this tax was considered unconstitutional in the Pollock Case (Hart 2002). The reason for this being unconstitutional, was because it was deemed as an unapportioned tax, which was not allowed by the Constitution at the time. There was a large disparity between the rich and poor class, and income tax was intended to “level the plainfield”. The original purpose of the sixteenth amendment was to provide a tax relief to wage earners (Hart 2002). Now that all wages are taxed, whether apportioned or not, taxing the rich was supposed to assist the lower classes while generating revenue for the government. Hart, Phil. "Phil Hart -- Constitutional Income: The Purpose of the 16th Amendment. Part1."Phil Hart -- Constitutional Income: The Purpose of the 16th Amendment. Part1. NewsWithViews.Com, 28 July 2002. Web. 01 Nov. 2014. . Smith, Ephraim P., Philip J. Harmelink, James R...
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...ACCT553 Week 1 Homework _______________________________________________________ Please provide your answer to each question in the space provided below. When finished, submit to the DropBox. Chapter 1 (5 pts) 1. Briefly discuss the purpose of the Sixteenth Amendment. The 16th amendment states that congress has the power to indirectly or directly tax income from any source derived. The purpose of the sixteenth amendment is to allow the government to create income taxes. The 16th amendment was adopted in 1903, when three-fourths of the states ratified the agreements. If these taxes are not paid, the government has the night to take income or land as payment. Chapter 2 (5 pts) 2. Explain the two "safe harbors" available to an Individual taxpayer to avoid a penalty for underpayment of estimated tax. The first safe harbor rule states that as long as the taxpayers quarterly payments equals 90% of what is due on the tax return they can escape a penalty. The second safe harbor allows the taxpayer to avoid a penalty as long as they pay 100% of the amount from the previous year’s tax return. If the taxpayer’s AGI exceeds $150,000, they must pay 110% of the previous year’s return. Chapter 3 (5 pts) 3. Explain the distinction between an "above the line" deduction (i.e. FOR AGI) and a below the line deduction (i.e. FROM AGI). Which one is more valuable? Above-the-line, or For AGI deductions, are taken out before your AGI is calculated. Above- the-line deductions include alimony...
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...Dylan Wilson Mr. McKown Government Dec. 5, 2017 Progressive Era Amendments Sixteenth Amendment The 16 amendment allows congress to tariff income tax without putting on the population or dividing up the states. The amendment is the constitution law empowering the government to income taxes on Americans (totallyhistory.com). The U.S. Treasury Department used to rely on sales taxes and tariffs for the majority of the federal budget (totallyhistory.com). When the sixteenth amendment was adopted the federal government was given more political power to set up the current form of taxation (totallyhistory.com). This amendment was ratified on Feb 3, 1913 (totallyhistory.com). With this, the initiative of taxes on wages gained...
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...In the words of Bernadette Cahill, the Equal Rights Amendment was an attempt “to finish the unfinished business of the Civil War” (Cahill, Bernadette). The main purpose for the ERA was to create equality for women under the law. The last time that anything like this was attempted was in 1870. Women’s Rights leaders of the time launched a campaign to reword the Fifteenth Amendment to include the word “sex.” The amendment in the constitution states, “race, color or previous condition of servitude.” This shows that since the original interpretation only applied to men, women themselves did not have the civil right to vote. At that point in time, they were purposefully not heard. In addition to this, they tried to implement a Sixteenth Amendment that dealt with women specifically, to no avail (Cahill, Bernadette). So from 1921 to 1923, Alice Paul drafted what is now known as the Equal Rights Amendment. Paul and the NWP, National Women’s Party, wanted to use this amendment in order to finally bring equality to all women (Cahill, Bernadette). The NWP had recently been fighting battles one...
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...The economic's view of money is not practical for tax purposes. One person's view of wealth can differ greatly from another person's view of wealth. The economic concept places heavy emphasis on the future. The following is an example of the economic benefit doctrine: I own a home today and the fair market value of the home is $250,000. Five years from today, the home appreciates in value to $375,000. On "paper" my portfolio has increased by $125,000. My wealth has increased in value, but until I sell the property, there is not a tax liability. a. Taxation in the United States dates back to the Constitution. The Constitution is the source of power to tax. The Constitution empowered Congress to "lay and collect taxes, duties, imports and excises, to pay the debts and provide for the common defense and general welfare of the United States". Tax laws as we know today are derived from the Sixteenth Amendment, passed by Congress on July 12, 1909. The 16th amendment gives Congress the power to lay and collect taxes on incomes, from whatever source derived. b. The legislative process for most bills following the following process: The tax bill is screened by the House Ways and Means Committee - Then, consideration by the House of Representatives (if defeated, back to Ways and Means Committee) Next, if passed, referred to the Senate Finance Committee. Hearings are heard which could result in amendments of the bill. Once passed, the next step is to go to...
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...of stocks. “The General Assembly intends by this chapter to establish a single body of law applicable to all public officers and employees on the subject of public records management and preservation and to ensure that the procedures used to manage and preserve public records will be uniform throughout the Commonwealth (1976, c. 746.).” U.S. Supreme Court holding federal income The U.S. Supreme Court ruled that a direct tax on personal income was unconstitutional as a result of the case of Pollock v. Farmers‘ Loan and Trust Company. The lawsuit was triggered in response to the Income Tax Act of 1894, which stated that any direct tax on the income of real and of personal property was void. The Supreme Court noted, "The Amendment was drawn for the purpose of doing away for the future with the principle...
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...their own levels, with numerous Republican progressives indicating their support for a new income tax. Senate Finance Committee Chairman Nelson Aldrich tried to fend off the income tax proposal, but pro-tax forces enjoyed considerable momentum, this was indicating that the proposal was on its way for the federal income tax. Worried that Aldrich would lose the battle, I believe that the purposes for these income tax are that president Taft convinced the senator that a modest tax on corporate income would siphon off support for general income taxation. In doing so, it would deny victory to the congressional income tax coalition, preserving GOP unity. Framed as an excise tax on the privilege of doing business as a corporation, the levy was carefully designed to sidestep constitutional issues surrounding the income tax. As Taft had predicted, the corporation tax successfully deflated the larer income tax movement at least for the time being. This is when the federal income tax became introduced, in 1913 as part of his 1909 tax compromise, Taft had agreed to support a constitutional amendment authorizing federal income...
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...hardship just as they can be altered to increase individual expenditure. For instance, FS-2006-2 - Publication 4492 has created tax breaks for Katrina, Rita, and Wilma victims. Those who have been affected may now exclude from income certain cancellations of debt and extends, from two years to five years, the replacement period for converted properties. At this point a logical question to ask is who governs taxation, and how are benefits and penalties decided? Modern taxation extends all the way back to Section I of both Articles 8 and 9 in the constitution, and has been heavily influenced by America's sixteenth amendment to the constitution. Amendment sixteen gave Congress the power to tax any entity regardless of census or enumeration. At first glance, Amendment sixteen appears to grant supreme Paper 3 power to Congress to tax; however, that it not the exact case. The amendment did not expand the federal government's existing taxing power but rather removed any requirement for apportionment of income taxes (meaning tax on profit or gain from any source) among the states on the basis of population. In 1955,...
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...The Roles and Functions of Law Cathi Stark LAW/421 December 23, 2013 John Koenig The Roles and Functions of Law The purpose of this paper is to inform about the roles and functions of the law. It will also show and define the function and roles of law as they apply to business and society. There will also be examples from real life experiences of the writer, myself. This week in class we were instructed to review the Commerce Powers from chapter two in our text book. There was a case review within the chapter that specifically outlines some of the roles and functions of the law. This case, Cipollone v. Liggett Group, Inc., et al., 505 U.S. 504 (1992), will be referenced through this paper. The basic function and roles of the law in business and society is for the benefits of the people and the protection of their rights. Laws are created to ensure we are safe and protected in all aspects of our lives, both personal and professional. In business, laws are designed to regulate activity at the local, state and federal levels. In case of Cipollone v. Liggett there is discussion of statute and enactment of laws. This case is based on a suit that Cipollone took against the cigarette manufactures, Liggett for the death of his mother. The study states that “Congress chose specifically to regulate a certain type of advertising (tobacco), federal law is supreme to any state law that attempts to regulate that same category of advertising.” (Melvin, 2011, p. 33) The Constitution...
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...AP US GOVERNMENT LINEBERRY CH 14 – THE CONGRESS, THE PRESIDENT, AND THE BUDGET TERMS AND CONCEPTS PP 441-457 Please outline the reading and then use the study guide to highlight this information. TERMS 1. Budget: A policy document allocating burdens (taxes) and benefits (expenditures). Budgeting is concerned with translating financial resources into human purposes. A budget is also a series of goals with price tags attached. 2. Deficit: An excess of federal expenditures over federal revenue in a fiscal year. In other words, the national government spends more money that it receives in taxes. 3. Revenues: The financial resources of the government. The individual income tax and Social Security tax are two major sources of the federal government’s revenue. 4. Expenditures: Government spending of revenues. Major areas of federal spending are social services and national defense. 5. Income tax: Shares of individual wages and corporate revenues collected by the government. Enacted to pay for the Civil War by Congress; however, it was called the first step to a “communist march.” The Sixteenth Amendment explicitly authorized Congress to levy a tax on income. Furthermore, this is generally progressive—pays more and higher rates as it continues. 6. Excise tax: A tax levied on the manufacture, transportation, sale, or consumption of a good—for example, those on gasoline. 7. Progressive tax: A progressive tax is one that makes those with more taxable income not only pay...
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...Tax Law and Accounting Craig ACC 483 June 21, 2010 Jeff Hough Modern taxation comes from a long history of changes in the United States beginning with the Revenue Act of 1861 that was designed to assist with funding the Civil War. This tax was repealed 10 years later. “In 1894 Congress enacted a flat rate federal income tax, which was ruled unconstitutional the following year by the U.S. Supreme Court because it was a direct tax not apportioned according to the population of each state” (Terrell, 2009, History of Tax Law, para. 2). In 1913, the Sixteenth Amendment enacted modern day federal income tax in the United States. Before 1913, the federal government relied on customs duties and excise taxes as its source of income. As America developed the U.S. government needed additional income to sustain its operations. The Sixteenth Amendment consisted of just one sentence: “The Congress shall have the power to lay and collect taxes on incomes, from whatever source derived, without apportionment among the several States, and without regard to any census or enumeration” (Pope, Anderson, & Kramer, 2010, p. 1-3). The implementation of income tax remains one of the most remarkable institutions created in this era. Modern Income Tax Statutes The primary objective of modern tax statutes is to generate revenue to sustain governmental operations. The largest source of federal revenues is individual income taxes. Other sources come from corporate income taxes and Social...
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...decades. The variety of losses that could be claimed has changed over time in response to wars, economic conditions, political pressures, and legislative changes. This paper will examine the allowable loss deductions, the impact on taxpayers, and the effects of the changes to the tax law. The issue of tax deductible losses is closely associated with the government's ability to tax income or revenue. Though this may seem an arbitrary issue to modern day Americans, Congress' ability to tax income is a development of the last one hundred years. Prior to the ratification of the sixteenth Amendment in 1913, the income tax was a contentious issue as it was deemed unconstitutional. Prior to 1913, the government relied heavily on property taxes and excise taxes to raise revenue for its operations. However, there were attempts to establish an income tax prior to the ratification of the amendment. The Revenue Act of 1862 created the first progressive income tax in the United States. The Act was passed in response to the government's need to fund the Civil War. The income tax was simple and provided two tax brackets, the highest being a 5% tax on taxpayers with incomes in excess of $10,000, per annum (Taxhistory.org, n.d.). The argument against the income tax was based on the tax being categorized as a direct tax, which Article I of the Constitution does not allow Congress to impose. Rather, the Congress was limited in its powers of taxation of property and to tax...
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...Name Instructor Course February 12th 2013 17th Century European Witch craze Abstract The 17th century was the height of witch craze in Europe, where many were executed and persecuted for witchcraft. Approximately eighty five percent of those executed for witchcraft were women and this frenzy continued in Europe all the way to the early twentieth century. The loss of life was so severe that it has been referred to some researchers as a holocaust. Did this hysteria against witchcraft reduce their numbers? No. The more violently they were executed, the more in number they became. Most of those executed were women and this form of massive attack on women signifies a type of genocide; one that focuses on gender rather than on a religious or ethnic group. In Reformation Europe, women were overwhelmingly tried as witches. In France and Germany, more than eighty percent of those executed as witches and in England, ninety two percent of those executed for witchcraft were women and in Russia, approximately ninety five percent were also put to death (Trevor 214). The practice of witch hunts subsided by late seventeenth century and by early eighteenth century, witchcraft trials were rare. The causes for the decline of witch hunts are numerous and complex. This paper will attempt to analyze the witch craze phenomenon concentrating on several questions: why did women suffer the majority of the executions? Why did the witch craze end in the seventeenth century? Why was there...
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...In 1912 election, Woodrow Wilson became second progressive President. His progressive reform policy was known “New Freedom”. With the democrats winning the elections, they accomplished their goals of: lowering the tariff. By lowering tariff would bring competition in American markets and break trusts. Sixteenth Amendment was passed by constitution to graduate the income taxes to recover looses. Reform in banking system was passed by Federal Reserve Act on Dec 23,1913. This will support loans to a private banks of interest and issue new type of paper Currency-Federal Reverse Notes- used for trade and supported by federal government. It was supervised by National Federal Reserve Boards, whose members are chosen by President. In 1914,...
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...methods that were used and still being used nowadays The Constitutional Convention was a meeting that took place in Philadelphia in 1787. The purpose of that meeting was to rewrite the Articles of Confederation. There were fifty five men who were delegates, their purpose was to have the federal government strengthen. The delegates did not think that rewriting the Articles of Confederation would actually work out. Eventually they wrote the U.S. Constitution. George Washington was chosen to lead the convention. All of the delegates had to agree that every state would get one vote. They did not want anyone to know about what was going on during the convention meetings. The delegates made sure to keep everything a secret, anyone who was not a delegate were not allowed to attend any meetings. We have no written documents because they kept everything a secret of what had occurred during the meetings. The only details we have today is from a notebook that belonged to James Madison. However, James Madison is known as the “Father of the Constitution.” He had also helped write the federalist papers. At the Constitutional Convention James Madison had done a very good job. When the delegates had to decided to write the “Bill of Rights” he was against it. James Madison was afraid that the future people would just go by those ten amendments that were listed in the “Bill of Rights”. James Madison had believed in a loose interpretation of the U.S. Constitution. The Virginia Plan was...
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