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Tax Law: a Broader Perspective

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Tax Law: A Broader Perspective
Accounting for Income Taxes
Taxes and the Law: A Broader Perspective
Taxes are everywhere and exist as a vital part of national structure, both legally and financially. Taxation influences everything from wages to inheritance. Given this, one is compelled to inquire as to how this balance works and what constitutes its existence. That is where understanding the effects of tax law and how they are accounted for have great import.
As with any other facet of life, rules accompany the application and processing of taxes, and how they are required to be paid. This sounds rather rigid, but there are many benefits to taxation as well as the normal mandatory sacrifices. This means that taxes can change to ease financial 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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