Federal Income Tax, State Tax And Property Tax

Taxes are unavoidable because government is needed and government operates on tax revenues. The FairTax is a tax-inclusive progressive national retail sales tax that replaces every other federal tax in America. The new national sales tax would be 23%. Although there have been some questions as to whether the sales tax rate is 23% or 30% and they stem from the meaning of tax-inclusive and tax exclusive. The sales tax in Florida is an example of an exclusive tax because it works of a preset base. If a person buys something for 1$ and pays a .30$ tax on it the sales tax is 30 percent because it is .30$ on the dollar. With the inclusive tax the item would cost 1.30 because the tax is included with the cost. The tax rate of 23% is calculated by

Property taxes in Texas have not always been the most favorite bill a citizen has to pay, some are large bills and some are small bills. Many legislatures and governors have played a role when it comes to property taxes and how much each citizen should be taxed. Depending on the area you live in, when it comes to school districts many have to pay taxes for more than one school district.

The arguments regarding federal progressive income tax has been represented to us through the United States Supreme Court, on the floors of congress, and in media. The revenue from taxes reached the objective of financing wars from the Civil War through World War II. At the same time deteriorating the economy with fewer dollars that could be used on imports, exports, and services (Henchman). Today, the United States deficit is $18,800,241,350,538.12 this is a grand total of 58,405.32 owed by every man, woman, and child (Brown). The legal illusion is presenting the question, is income tax legal? There are Americans today who believe income tax is not legal and stand by their beliefs in a movement that has cost many individuals considerably. I am interviewing such a person, his name is Bobby Ray and the history he presented to me was interesting, and has left me with more questions than answers.

The top 1 percent of the wealthiest people in the U.S. pay a total of over 40 percent of all federal income taxes, which is more than the entire bottom 95 percent of all tax payers. Government programs are funded through Social Insurance Taxes that are the fastest growing source of federal income though it’s actually counted separately in special trust funds by the Treasury. Both federal and state governments combine these taxes that are used to pay for social programs such as social security, Medicare, and unemployment services. This type of taxation is a regressive tax, since lower income people end up paying more from their income than those with a higher income. Another federal tax is the excise tax, better considered a luxury tax for non-necessities, which include things like liquor, cigarettes, gas, and highways. Taxes that are imposed on imported goods so that there’s less foreign competition on the domestic market are called customs duties.

“When it came to levying taxes the Articles stated Congress could request states to pay taxes. The Constitution states Congress has the right to levy taxes on individuals” (Feldmeth, Greg D. "U.S. History Resources" http://home.earthlink.net/~gfeldmeth/USHistory.html (31 March 1998). “A federal court the Articles

1. The ratification of the Sixteenth Amendment to the U.S. Constitution was necessary to validate the Federal income tax on individuals.

Residents pay less in taxes than the states that have a state tax. All states must generate revenue and they do so through various taxes including income taxes, sales taxes, and property taxes, just to name a few. (Longley) Texas has a state sales tax rate of 6.25%, but once you add in taxes from counties, cities, transit, and special purpose districts, the tax rate reaches 8.25%. (Texas)

The state of Texas does not have a state income tax. States collect taxes to generate revenue to operate. Texas collects the necessary funds from property and sales taxes. As of 2014, there are only seven states that do not collect an individual income tax. The other six states are Alaska, Florida, Nevada, South Dakota, Washington and Wyoming. Tennessee and New Hampshire have a limited tax on individuals, taxing only dividends and interest income. The lack of individual income tax is protected by Article 8 of the Texas State Constitution, which limits potential tax in the future as well. Texas funds itself through a 6.25% sales tax, taxes on motor vehicle sales and fuel, and taxes and royalties on oil and natural-gas production. Texas has

Taxation, a method by which a state, local, or federal government collects money from its citizens in order to fund the operations of the governmental body. When our nation first began, it was built upon the unanimous hope of freedom from Europe shared amongst a group of brave men and women willing to risk their lives to make the journey across the ocean in order to found a nation free from the King. In the late 1700’s, the 13 colonies of America were established; free from the rule of a monarchy, the Americas were an independent nation run under the Articles of Confederation. The Articles of Confederation formed a weak form of government under which the balance of powers between the state and national government were unbalanced. Congress had no power over the states; they could not collect taxes which were vital for the survival of the emerging nation. It was not until approximately ten years later that the United States Constitution was ratified and a democratic government was formed under which a balance of power between state and federal governments was enforced. Under the new system, congress could impose taxes upon citizens for the purpose of paying the country’s debt, security and welfare.

The Sixteenth Amendment of the United States Constitution gives the United States government the right to tax income.

Alaska has a long history with state taxation; in 1949, the first state income tax became law, ten years before they officially became a U.S. state on January 3, 1959. The first income tax regulations were simple, but still heavily taxing on a state already burdened by the high costs of living. Residents

Our current income tax system today is very complex, unfair, inhibits saving, investment and job creation, imposes a heavy burden on families, and weakens the integrity of the democratic process. It can't be fixed and must be replaced. The U.S. income tax code is a long and complex system. The income tax system is so complex; the IRS publishes 480 tax forms and 280 forms to explain the 480 forms. The IRS sends out eight billion pages of forms and instructions each year. The administrative costs of the tax system far exceed those borne directly by the IRS. Each year Americans devote 5.4 billion hours complying with the tax code, which is more time than it takes to build every car, truck, and van produced in the U.S.

Currently, the United States has a federal income tax that is very difficult to understand, to comply with,

. (TCO 2) Barry owns a 30% interest in a partnership that earned $300,000 this year. He also owns 30% of the stock in a C corporation that earned $300,000 during the year. The partnership did not make any distributions, and the corporation did not pay any dividends. How much income must Barry report from these businesses? (Points : 2)

The United States economy, as known by all, is not in its best shape. One way in which the government gains money is by imposing taxes on people. There are many taxes that are placed on different things that everyone needs or already has. The United States uses a taxation system which is criticized by many. The system used in Progressive Tax; however, many people believe the system of Flat Tax, or Proportional Tax, should be the system that is used for taxing.