...Common Sense Approach to Reforming the Federal Tax System On February 3, 2013 marked the 100th birthday of the 16th Amendment. The 16th Amendment paved the way for the creation of the federal income tax that continues to this day to have far reaching repercussions on the American tax payer. Before the ratification of the 16th Amendment, the birth of the federal income tax dates back to the Civil War. In order to finance the Civil War, President Abraham Lincoln signed into law Revenue Act of 1861 on August 5, 1861. The Revenue Act consisted of a flat tax rate of 3% on income above $800 and 5% on individuals living outside of the United States. On July 1, 1861 United States Congress repealed the Revenue Act of 1861 and replaced it with the Revenue Act of 1862. The Revenue Act of 1862 introduced a progressive tax and established the Bureau of Internal Revenue. In 1872 Congress repealed the Revenue Act of 1862. One again elected officials tried to revive the federal income tax in 1894. However, in 1895 the federal income tax was declared unconstitutional by the U.S. Supreme Court because the tax was not apportioned according to the population of each state. In an address to Congress on June 16, 1909 President Howard Taft proposed that Congress consider a new amendment to the Constitution. “I recommend, then, first, the adoption of a joint resolution by two-thirds of both Houses, proposing to the States an amendment to the Constitution granting to the Federal Government...
Words: 3688 - Pages: 15
...property taxation for public school purposes. Basically, the proposed amendment would increase this exemption to $25,000. School districts would be held harmless from all or part of the revenue loss with additional legislative funding. The amendment also would constitutionally prohibit a sales tax being imposed on the sale of your home or business property. Supporters suggested cutting property taxes by increasing the homestead exemption would stimulate economic growth and provide tax relief, as well as increase the state share of public school funding. Moreover, homestead exemptions particularly benefit low-income individuals, by exempting a higher percentage of the value of a less expensive house. Opponents argued that many taxpayers will see only marginal reductions in their property taxes – as little as $126 annually, according to some estimates. Proposition 2 (XXXX – yyy%-zzz%) In 2011, voters approved a constitutional amendment to allow a surviving spouse of a disabled veteran an exemption from property taxation on the disabled veteran’s residence homestead, as long as the...
Words: 1083 - Pages: 5
... The first issue we shall deliberate on is immigration because it has been a hot topic during the debates. The Texas Senator has a website discussing his stance on this issue and what he would do to change it like building a wall to prevent illegal immigrants or terrorist from crossing over to American soil. He also wants to triple the border patrol agents to secure the wall. He has also said that he would put an end to President Obama’s amnesty by rescinding all those that he gave out. He has always been trying to strengthen our immigration system. For an instance, when he filed an amendment that would block illegal immigrants that are living in the United States from ever getting their citizenship, strengthen border security, prohibit federal, state, and local benefits from giving assistants to undocumented immigrants. In an article from the U.S. News Cruz stated that: The amendments filed today to strengthen border security and reform our legal immigration system will not only bring meaningful, effective improvements to our immigration system, but also have a chance of becoming law. America is a nation of immigrants, built by immigrants and we need to honor that heritage by fixing our broken immigration system, while upholding the rule of law and championing legal immigration. (Metlzer) I believe he has the correct idea in penalizing those who have come into the United States without going through the proper channels. He realizes that we are a country that was found...
Words: 1483 - Pages: 6
...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...
Words: 400 - Pages: 2
...POE -help the private sector formulate an industrialization and it plan, so that there would be more ‘made in the Philippines’ products. -strengthen the “study now, pay later” program. -give farmers their own land, boost irrigation and push for mechanization, and look for a program to make fishing, farming and livestock propagation profitable for the farmers and the youth. - look for ways to lower power costs and resolve the frequent brownouts in Mindanao. And find ways for the development of renewable energy. - People should be able to rely on expanded benefits through Philhealth. - bring about reforms to achieve inclusive growth, global competitiveness, and transparent government. POE -help the private sector formulate an industrialization and it plan, so that there would be more ‘made in the Philippines’ products. -strengthen the “study now, pay later” program. -give farmers their own land, boost irrigation and push for mechanization, and look for a program to make fishing, farming and livestock propagation profitable for the farmers and the youth. - look for ways to lower power costs and resolve the frequent brownouts in Mindanao. And find ways for the development of renewable energy. - People should be able to rely on expanded benefits through Philhealth. - bring about reforms to achieve inclusive growth, global competitiveness, and transparent government. SIMILARITIES * To provide adequate Education * Help the poor and the...
Words: 1237 - Pages: 5
...History of U.S. Taxation A. An income tax on individuals was used to provide financing for the Civil War. ألغى then the war ended, the tax was repealed . In 1894, a new individual income tax was enacted سنت but the Supreme Court held the tax to be unconstitutional. After a constitutional challenge to the taxation of income, the Sixteenth Amendment, this sanctioned both the federal individual and corporate income taxes, عقوبات was ratified in 1913. The present income tax on individuals was enacted in 1913. The corporate income tax, which was originally adopted in 1909, withstood صمدت constitutional challenge because it was viewed as an excise tax, not a direct tax. ضريبة المكوس B. Numerous revenue acts, which rewrote completely the federal tax provisions, were enacted between 1913 and 1939. These provisions were reorganized and included, in a more permanent form, in the Internal Revenue Code of 1939. Thereafter, tax laws were changed when Congress adopted amendments to the 1939 Code; a complete rewriting of the laws was unnecessary. A revised Internal Revenue Code was adopted in 1954. The 1954 Code was the controlling body of tax law until 1986. In 1986, Congress enacted the most comprehensive overhaul of the Internal Revenue Code in over thirty years. As a result of the massive changes contained in the new law, the federal tax code was renamed the Internal Revenue Code of 1986. Nevertheless, many of the provisions of the 1954 Code were carried over to the...
Words: 2384 - Pages: 10
...924Lecture One Introduction to taxation law Tax formula, tax rates and tax offsets Administrative aspects of taxation Readings from Australian Taxation Law 2014 CCH (referred to in this lecture as “W”) Introduction to taxation law W 1-550; W1-310 to 1-620 Tax formula, tax rates and tax offsets W 2-000 to 2-040; W2-100 to 2-150 W2-200; W2-300 to 2-405 W2-500 to 2-520; W 2-640 Administrative aspects of taxation Tax rulings, tax returns and assessments:W30-000 to 30-025; W30-033 to W30-040; W30-055 to 30-104; W30-140 to 30-155 Tax appeal process: W31-300 to 31-700; W33-020 to 33-083; W33-095 1 What is a tax? Principles from High Court in MacCormick v FC of T (1983-84) 158 CLR 62 – a payment is a tax where: 1. it is a compulsory payment 2. the money is raised for public purposes 3. it is not arbitrary and is not a penalty 4. it is not a payment for services, and 5. it is contestable – can be challenged Taxes are imposed at three levels in Australia: Commonwealth, State and Local 2 Types of taxes 1. Income taxes imposed by the Commonwealth on income -- paid by individuals, companies etc 2. Property taxes – death duties, wealth tax (no longer in Australia) 3. Taxes on consumption – GST and customs duties by the Commonwealth, stamp duties by the States 4. Taxes on labour and land -- Pay-roll tax on wages and land tax on land (unless used for residence) – imposed by the States 5. Taxes imposed by local government, eg, rates on home owners 3 Australian Taxation System ...
Words: 2768 - Pages: 12
...INTERNAL REVENUE SERVICE 10 Data Security Who has access to your tax data? Nikki Davis Abstract In this tax season, when billions of dollars and tons of personal information is relayed to and from the government, it's more than disconcerting to hear that the Internal Revenue Service is still struggling to keep private information secure. The purpose of my study is to improve the safeguard of taxpayers’ data at the Internal Revenue Service. Due to the fact that firewalls are in place and transaction monitoring is also in place; yet, taxpayers’ data is still being exploited. It seems that the problem lies in the character of some of the employees. It is not such much that the background checks are not in depth, they are not expeditious. It may take up to 3 years to perform a full background check. What is Data Security Data is the raw form of information stored as columns and rows in our databases, network servers and personal computers. This may be a wide range of information from personal files and intellectual property to market analytics and details intended to be top secret. Data could be anything of interest that can be read or otherwise interpreted in human form. Data security is the means of ensuring that data is kept safe from corruption and that access to it is suitably controlled. Thus data security helps to ensure privacy. It also helps in protecting personal data. In simple terms, data security is the practice of keeping data protected from corruption...
Words: 1430 - Pages: 6
...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...
Words: 776 - Pages: 4
...listed in the Constitution and are not political organizations, now have the same right as people under the First Amendment, such as free speech. Corporations can spend all their wealth on promoting specific politicians which will eventually increase the corporations’ profits. In the article “Citizens United and the Corporate Court” by Jamie Raskin, she says that “corporations were already spending billions of dollars lobbying, running issued ads, launching political action committees and soliciting PAC contributions” (Raskin 17). She says that corporations try to use as much money as possible to influence the people to vote for specific candidates in the election. Moreover, corporations only donate money to political campaigns which influences the politician’s decision making. As soon as politicians get elected, they will help increase the corporations’ business profits. This gives the corporations tax breaks and more profits. In the...
Words: 807 - Pages: 4
...annually should pay a smaller share of their income in taxes than middle class (Buffet Rule). In the recent years Obama has sent a proposal an amendment called the buffet rule but is also known as the Paying A Fair Act of 2012. This amendment says that the Internal Revenue Code to require an individual taxpayer whose adjusted gross income exceeds $1 million to pay a minimum tax rate of 30% of the excess of the taxpayer's adjusted gross income over the taxpayer's modified charitable contribution deduction for the taxable year (tentative fair share tax). This rule will ensure that the 1 percent of Americans that are millionaire they will have to pay at least 30 of the income towards their taxes unless they are giving a large portion of the annually gross income to charity of their chose. This will pervert a large majority of the millionaires from getting through in loophole the system has. The proposal will not tamper with existing tax rates. Instead, under the proposal, those making more than $1 million a year would be required to calculate their overall tax rate, taking into account all their income and the full sum of what they pay in taxes. If that amount adds up to less than 30 percent, they would be required to make up the difference. The Buffett Rule would limit the degree to which the best-off can take advantage of loopholes and tax rates that allow them to pay less of their income in taxes than middle-class families. Anyone who does well for themselves should do their...
Words: 345 - Pages: 2
...Objectives for Chapter 18: Fiscal Policy (This is a technical chapter and may require two class periods.) At the end of Chapter 18, you will be able to answer the following: 1. How is the government purchases multiplier calculated? (Review) How is the taxation multiplier calculated? Why is it lower than the government purchases multiplier? How is the transfers multiplier calculated? 2. Given some gaps and marginal propensities to consume, calculate how much government purchases, taxes, or transfers should be changed. 3. Explain why an equal increase (decrease) in government purchases and net taxes (taxes minus transfers) has an expansionary (contractionary) effect. 4. What is the balanced budget multiplier? 5. Explain why discretionary fiscal policy has not been very effective in reducing recessions in the United States. 6. What are the “time lags”? 7. What is meant by "automatic stabilization"? What are the main automatic stabilizers? 8. What is meant by "official budget deficit"? by "structural deficit"? Why is the structural budget deficit a better measure of the intent of fiscal policy? 9. What does it mean that "fiscal policy is expansionary (or contractionary)"? How does one determine whether fiscal policy is expansionary or contractionary? 10. In what ways might budget deficits be bad for an economy? In what ways might they be good for an economy? 11. What...
Words: 9913 - Pages: 40
...Tax Research and Bibliography University Instructor: Introduction This paper addresses three aspects of corporate tax research and its associated bibliographies to clarify the subject matter, thus providing credence to the work and its authors. Three subject have been explored; first examined was ‘equal opportunity and disabled workers’, next was the deductibility of tuition, and finally, the matters of ‘tax court and TEFRA’ were looked at and provided a nice grouping of responses over ten years. Research Results Subject 1: Equal opportunity and disabled workers, returned one result in ten years. Lytes v. DC water & sewer auth. No. 08-7002 936 (UNITED STATES COURT OF APPEALS FOR THE DISTRICT OF COLUMBIA CIRCUIT 2005) A (Appellant) former employee sought judicial review of the United States District Court for the District of Columbia's entry of summary judgment in favor of appellee, his former employer, on his claim that the employer refused to accommodate his disability and then terminated his employment, in violation of the Americans with Disabilities Act of 1990 (ADA) and while the appeal was pending the ADA Amendments Act of 2008 became law. Only the district court's holding that the employee was not actually disabled was challenged and in applying the ADA prior to its amendment, the employee failed to discuss his functional capacity at the time of the alleged discrimination. In fact, the employee never discussed or provided any proof...
Words: 2023 - Pages: 9
...2008) CONTENTS |Introduction ……………………………………………………………………………. |3 | |1. Institutional reform …………………………………………………………….. |4 | |2. The introduction of European definitions of small businesses ……………………………………………………………………………... | | | |5 | |3. Regulatory reform ………………………………………………………………... |6 | |4. The improvement of the tax regime …………………………………….. |7 | |5. Reform of the licensing system ……………………………………………. |10 | |6. Improvement of property registration system …………………….. |12 | |7. The creation of an effective information system ………………. |13 | |8. Reform of the system of various approvals and construction permits…………………………………………………………… | | |...
Words: 7623 - Pages: 31
...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...
Words: 1735 - Pages: 7
