The American Taxpayer Relief Act of 2012 is a bill signed into law by President Obama in order to avoid the “large tax increases and across-the-board military and domestic spending cuts” of the “fiscal cliff” (Weisman)…
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The bill mostly raises taxes on the wealthy to levels which are closer to what the rest of Americans pay, and does not cause lots of damage to benefit programs like Medicare and Social Security. Despite these positive aspects of the bill, it does have strong opponents. The opponents do not like the way it raises taxes on the wealthiest Americans, and also argue that it will hurt small business owners. I believe, however, that the bill is a good thing, and will help everyone in by avoiding massive spending cuts and tax increases which would definitely hurt the economy. One of the best parts about the American Taxpayer Relief Act is that it makes very limited cuts to benefits for those who need them the most. These include continuing some of the tax breaks that were going to expire, so that “families will continue to receive tax credits to help raise their kids and send them to college,” and companies “continue to receive tax credits” for things like research, investment, and clean energy jobs (Compton). In addition to tax breaks, though, the bill does not make any cuts to Medicare, Medicaid, or social security, all of which help “seniors, students, the poor, and working families” (Compton)....
ng over $400,000 a year should be easily able to pay a little more without having to worry about their well-being, their housing situation, and their medical bills. The fact that the bill does not raise taxes or remove cuts on middle-class or low-income groups where these things would be problematic is a good thing. The comments that opponents of the bill usually have focus mostly on the total amount of money that will be put onto American taxpayers. For example, they say that combined with the so-called “Obamacare” act taxpayers will have to pay almost $60 billion in new taxes starting this year (Patten). The biggest single increase is the one on payroll taxes. Critics argue that the removal of the “payroll tax holiday,” which was removed in order to increase payments to Social Security, “will actually hit lower- and middle-income taxpayers harder, in percentage terms, than the wealthy” (Patten). Another common argument is that small business owners, who are supposed to be good for the economy, will suffer under the bill. For example, they point out that “750,000 small businesses would be impacted if taxes were raised on individuals making more than $500,000” (Patten). Despite what opponents say, I believe that the new tax bill will mostly help the economy recover, while having a limited impact on the American people. It is dishonest to suggest that the bill will affect all taxpayers the same, as it is mostly the wealthy who have increases. Although the rich are upset about this, really since they make so much more money than most people it is fair to have them pay more in taxes than the average middle class American does. On the other hand, the tax bill makes tax cuts to lower-income Americans permanent, doesn’t cut benefits to the most needy, and
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The author states that although a tax form has been simplified, some 40% to 50% of all tax filings have been completed by the tax preparer, of which there are four types, namely: certified public accountants, lawyers, an enrolled agent (someone who passed special examinations given by the Internal Revenue Service) and unenrolled tax preparer.
This paper will examine tax reforms in the US, discussing pertinent issues like corporate tax loopholes, benefits of corporate S status, gift tax laws and abolition of estate taxes. This paper shall provide alternatives to the federal system of taxation. Tax reforms are essential to the realization of corporate and national growth (Shapiro, 2005).
Interest paid on money to buy or carry investment property that produces taxable income is also deductible on Schedule A, but under section 163(d) the deduction cannot exceed the net investment income. Commissions and other costs of acquiring or disposing of securities are not deductible but must be used to figure gain or loss upon disposition of the securities.
The car leased by the employee under a lease scheme also attracts fringe benefits tax (FBT). The FBT payable is calculated on the basis of the gross value of the benefits. The grossed-up rule determines the value of the fringe benefit in such a way that it is equivalent to the after-tax salary amount.
They anticipate that the government will carry out its tax practices and maximize the amounts of payments and pension of all the public workers who are members of a particular union. Public employees forming the unions
Although taxation should be done on an equal level, government departments are considering a reduction for the middle class and an increase for the wealthy. The changes in tax systems are indicators of economic development of the US and other countries.
Gross income illustrates the total income earned by individuals; for example, basic salary plus allowances. Several tax returns deductions are subtracted from gross income to form the AGI, for example, medical deductions. Taxable income is calculated by subtracting itemized deductions and also personal exemptions, from the adjusted gross income.
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