StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...
Free

Analysis on state and local taxes on the poor - Essay Example

Comments (0) Cite this document
Summary
Tax refers to a financial levy or charge that is imposed on people or legal entities by a government, state or federal so as to find public expenditure. Different governments levy taxes using different criteria and formulae. This paper is however interested in the effect f taxes…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER92.1% of users find it useful
Analysis on state and local taxes on the poor
Read TextPreview

Extract of sample "Analysis on state and local taxes on the poor"

Effect of and Local Tax April 12, Introduction Tax refers to a financial levy or charge that is imposed on people or legal entities by a government, state or federal so as to find public expenditure. Different governments levy taxes using different criteria and formulae. This paper is however interested in the effect f taxes on low income households, or the poor. It will assess whether or not the poor pay more taxes than high and middle income people. It will also seek to describe the effect of increasing the minimum wage.
Contrary to the belief of many, low income people pay relatively low taxes at the federal level. This is due to tax credits that reduce their tax liability. Stimulus measures that were enacted to offset effects of the 2998-2009 recession went further to reduce their tax burden. As of 2011, the lowest quintile would pay taxes equal to about 0.8 percent of their income. This is according to Creedy (2011).
From the above explanation, the answer to whether the poor are taxed more than other groups can be draw. Creedy (2011) explains that they are not. This is simply because taxes are levied on a percentage. Low-income households will be taxed a smaller percentage of their income as compared to middle and high income households.
Raising the minimum wage will have the effect of reducing poverty only in some geographical areas and not at the national level. This is because increased minimum wage will affect poverty based on the population density of an area. The higher the population density, the more the effect of the higher minimum wage. This is due to the fact that poverty is also a function of population density ad not individual households. This is explained by Cunningham (2007).
Conclusion
From the above discussion, it is evident that the poor are taxed less that other groups. The effect of increasing the minimum wage will only reduce poverty in areas of high population density.
References
Creedy, J. (2011). Taxation, poverty and income distribution. Aldershot: Elgar.
Cunningham, W. V. (2007). Minimum wages and social policy : A lesson from developing countries. Washington D.C: World Bank. Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Analysis on state and local taxes on the poor Essay”, n.d.)
Analysis on state and local taxes on the poor Essay. Retrieved from https://studentshare.org/social-science/1688527-analysis-on-state-and-local-taxes-on-the-poor
(Analysis on State and Local Taxes on the Poor Essay)
Analysis on State and Local Taxes on the Poor Essay. https://studentshare.org/social-science/1688527-analysis-on-state-and-local-taxes-on-the-poor.
“Analysis on State and Local Taxes on the Poor Essay”, n.d. https://studentshare.org/social-science/1688527-analysis-on-state-and-local-taxes-on-the-poor.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF Analysis on state and local taxes on the poor

Local government taxes

... Local Government Taxes Are and local government taxes mostly regressive, progressive or neutral? Americans candefine tax fairness in various ways. Despite this, they all have a shared vision: most Americans believe their government should put additional effort in helping its citizens with the vast majority being of the belief that the wealthier Americans should actually be the ones to pay higher taxes in order to support the priorities. However, America has a local and state tax system that is very polar to these beliefs with the wealthy paying almost half the taxes that the less well off. In its comprehensive report, in 2009, the Institute of Taxation and Economic policy did an analysis of all states in the U.S., in addition to other...
5 Pages(1250 words)Essay

Local Physical Geography: Arizona State

...Local Physical Geography: Arizona State Arizona State is located in the Southwestern area of the U.S. The state of Arizona belongs to the mountainside states, and it is famously known for its picturesque landscape and the Grand Canyon. The capital city of Arizona is Phoenix. I live in a City called Mesa that is located in the Maricopa County, and it is located 20 miles east of the capital city Phoenix. The city of Mesa was established in the late eighteenth century around the 1880s and 90s. Before the settlers arrived, it was occupied by a native tribe of people called the Hohokam who came to the area and built large canals, which they used for irrigation in the desert. The settlers later came and settled in the area atop a mesa thus...
4 Pages(1000 words)Essay

Virginia State and Local Government

.... The Northern Virginia Transport Authority, is a body constituted by a bill passed by t he General assembly of Virginia. This body is not an elected one and therefore, is not considered the representation of the people. The constitution makes it illegal for non-elected bodies to collect taxes and other fees, to raise funds for the public sector. The General assembly passed a bill stating the delegation of the functions of imposing and collecting taxes, to the Northern Virginia Transportation Authority. In other words, an unelected body would be in-charge of imposing a series of taxes and fees in the Northern Virginia localities...
1 Pages(250 words)Essay

Virginia State Local Government

.... This claim is supported by findings of experts that wages and salaries in the north are indeed higher than the rest of Virginia, where incidentally more African-Americans can be found. Given the existence of inequity between northern and southern counties, an obvious solution to the problem would actually be for the government to strive to make state of things equal, given the injustices and unfairness present in Virginia nowadays. However, the question is: how do legislators go about doing this For one, legislators can push for the use of other guidelines other than the Dillon rule. The Dillon Rule, a guideline used by Virginia judges for interpretation of laws in the state, was shown as something that limits local governments...
2 Pages(500 words)Essay

State and Local Government Corruption

... group preferences (Political Corruption 2005). Corruption is hard to minimize because it involves confidentiality and too often encounters public acceptance. Investigations have become hard and multifaceted. Investigators must conquer outdated attitudes in the midst of many truthful public officials and private citizens that whistle blowing is useless or even unsafe (Local Government 1992, pg. 7). In the late 1960s and 1970s, major reform laws gave the state of New Jersey the commission, statewide grand juries, a state division of Criminal Justice, full-time prosecutors, an Election Law Enforcement Commission, the power to conduct electronic surveillance and grant immunity to prospective witnesses, increased penalties and a longer...
5 Pages(1250 words)Literature review

Virginia Local and State Government

... all other states, is subject to a term s of four years and nothing more. In my view, this system of 'term limit' can be altered to suit the current needs of the state and its governmental functioning. I feel that the term limit for the Governor should be increased. It could be made up to at least a two-year term, which means the Governor will be able to hold the office for eight years at length. The flip side of the change in the term limit feature would be the decrease in the terms of the members of the Legislative Assembly. The term limits could be decided upon, for the members of the State Senate and differently...
2 Pages(500 words)Essay

Taxes

.... In this way, one can claim for Capital Gains tax previously paid. One of the most popular vehicles used to reduce Estate tax is to ‘uniform transfer to minors’. Such type of gifting occurs where your children are minors. The gift is handed over to a guardian and when the children reach the age of majority. Marital transfers is another useful way in which assets are transferred to a surviving spouse, who should not be a non-citizen, which minimized the estate tax which is due. Lastly, Quality Family-Owned Business Interest (QFOBI) is another way in which it reduces the gross value of the state and automatically reduces the amount of estate tax which is charged on the net value of the state (Karayan, et al., 2002). I am very much hopeful...
1 Pages(250 words)Essay

Taxes

...Should the USA lower, raise of maintain its corporate tax rates? Taxes are always a contentious issue in American politics. The two leading parties in the country have their own views on taxes. The Republicans are mostly in favor of tax cuts for businesses, whereas the Democrats generally favor proportionately high taxes for the rich. In my personal opinion I support a progressive tax regime that levies a greater tax rate on corporations and rich individuals. The rationale for this position is the prevailing disparities in American society. Despite being the richest country in the world, the United States lags behind in welfare and social security features. The revenues collected through a progressive tax regime can be utilized...
1 Pages(250 words)Assignment

California State and Local Government

Chapter Identify and discuss the problems that continue to plague California.  Various issues have been raised in the labor sector, which is seen as a plague evident by strike and staged protests. Wages and hour as an issue is another blow to the major employees in California (Patterson 30). Devastating drought is another plague in California shown by U.S National Drought Monitors. Energy crisis also affects the state; there is insufficient supply of power due to poor transmission systems. In addition, there are Poor health conditions such as smoke from Happy Camp Complex.
Chapter 2
Identify and discuss California’s political history.
The Constitution of California has established California government agencies, instituti...
1 Pages(250 words)Essay

State and local GOVT

... become important in terms or ensuring that federal employment is given to the qualified individuals. However, it has been stated, “the greatest professional challenges for public merit personnel are at the local level. The merit principle entails the selection and appointment of the best person for any given job (Bowman & West, 2006). This is the first instance where the challenge comes because public appointments have leaned towards professionalism, even at the local level. Professionals link professionalism to possession of knowledge and are attached to group identity. When applying issues of merit for a job at a local level more issues other than professionalism such as gender and race balance issues are considered to get the best...
2 Pages(500 words)Assignment
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Essay on topic Analysis on state and local taxes on the poor for FREE!

Contact Us