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The Fair tax act (HR 25, S 13) is legislation which not inclined to any of the political parties in the United States. The act will abolish all capital gains, social security, self-employment taxes, Medicare expenses; income taxes levied on corporations and individuals by the federal government, and replace them with an uncomplicated sales tax. The state’s sales tax authorities administer the retail sales tax that enacted by the federal government (Barbra, 2011 p 22).
The system of the fair tax equates all persons and it will enhance efficiency, accountability, and a lasting solution to the disparities in the current system of taxation. With the enactment of the fair tax, it is easier to monitor the activities of the government agencies mandated to carry out the roles of collecting taxes. For a long time, the various agencies of the government entrusted to levy taxes on business corporations and individuals have misused the authority granted by the constitution. The act came to minimize the abuse of powers by the state authorities to ensure just and reasonable treatment of all citizens (Barbara, 2011 p 79).
Trade and other commercial activities will occur in a favorable environment. The act puts into consideration both exports and imports; exports should not be taxed because their consumption occurs outside the United States. On the other hand, goods imported to the United States undergo taxation since consumption is in the domestic markets. Thus, the act will make sure that the goods locally produced in the United States become more competitive both in the United States and international markets (Barbara, 2011 p 79).
The fair Tax act plan has an impact on the cost of education. The act can be regarded as the only proposal of tax reform that supports education, compared to the current law on taxation. As a matter of fact, the plan cuts by half the cost of education to American families making education accessible to as many Americans as
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It has been cited that there were a lot of abusive and decisive acts from debt collectors which results to various problems such that of bankruptcy, marital problems, loss of jobs, other personal instabilities and invasion of privacy. The Act prohibits the following abusive and deceptive conducts on collecting debts.
This is as a result of taxation on the interest that is earned, capital gains and the returns to the shareholders. The regressive payroll tax burden makes people who earn wage in the society and those who own businesses to struggle. (Legislative Branch, 2011, p20190) The essay aims at discussing main points regarding the implementation of fair tax in the United States.
Tax evasion is a social deviance by the elite community working in white collar jobs. Tax evasion is a conscious avoidance to pay tax. Elite deviance refers to wrong doing of powerful and wealthy organizations and individuals who refuse to pay tax. The organizations or individuals evade paying tax by making corporate contributions and illegal campaign contributions that aim at deceiving the public and the government.
In situations where transactions are accounted for outside profits or loss, this standard has offered specific provisions. In case of the transactions that are recognised directly in equity, any associated tax implications are also recognised directly in equity, while those that are recognised in comprehensive income have their associated tax implications recognised in comprehensive income.
The responsibility of IRS includes collection of taxes in US and enforcing the Internal Revenue Code that is framed by the US federal government. Currently IRS has divided its interest and audit functions under four divisions, namely the Large and International Business, the Small Business and Self-employed, Wages and Investment division and the Government organizations (exempted from tax).
There was a change from the awarding and collective negotiation agreements to the individual contracts in employment. Previously there existed a long tradition of the centralised regulation related to wages by means of awards or agreements in Australia Industrial Relations Commission including both industry and national levels.
The recent reform in the US tax code in the Congress is with the aim to reduce the number of people who evade tax, while promoting the economy’s growth (Snowdon 35). The tax code is aiming at a situation where the tax levied on the people is fairer and everyone pays according to their levels of income.
Without taxes, the government cannot deliver even the basic services it owes to the people. It cannot construct the necessary structures to develop the country. It cannot build schools, hospitals, and all other government buildings where services are rendered to the people.
One flat tax rate along with a rebate tied to the poverty line would replace the progressive system of taxation that businesses and individuals alike have to pay into. There are compelling arguments for and against the NST. The most compelling side is the side against the NST.
(Legislative Branch, 2011, p20190) The essay aims at discussing main points regarding the implementation of fair tax in the United States.
NSBA was the first small business organization to give a pass to fair tax to apply to all
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