Obama belief that tax rates should be raised on the wealthiest Americans

President Obama stands in firm belief that must raise tax rates on the wealthiest Americans, and even the Republicans in Congress are not sure what to make concessions in an attempt to avoid the so-called "Hades" promised that the tax increases and spending cuts kick in automatically if no agreement is reached. There is less than a month to go before the cliff to kick in, and in the process of making his case, the President presented the idea that he was willing to discuss a reduction in tax rates for the year 2013 as part of a larger attempt to revamp the u.s. tax code.

It seems the Democrats largely on intentions to ensure that spending on mega-benefits schemes unsustainable in the long-continued unabated, while also insisting on the imposition of higher taxes on a small part of the population to pay for wasteful spending and waste. It's just the concept of Defense, since most of the country will not be adversely affected.

On the Republican side, it seems as if there is some disagreement, some GOP members argue that a tax increase would be OK in some cases, while others are standing firm against this move. In the Senate, minority leader Mitch McConnell specifically does not return a plan by fellow Republican John Boehner in the House of representatives. McConnell noted that, "I think it is important that the Republican leadership in the House had tried to move the process forward." it remains to be seen which side will defeat in the face, but at the end of the day you can bet that the United States will still be spending way too much money on a wide range of programmes of extravagance.

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All About The Regressive Tax System

Taxation is an important aspect of the country's economy and growth. Different types of taxes imposed on the people of a country, in order to generate finance for different purposes. These purposes may include expenditures made in war, law enforcement, and economic growth, infrastructure development and the functioning of Government itself. And also funds public services, such as education, health care, transportation, and unemployment taxes. Tax may be progressive, regressive, or proportional, depending on several factors. Retrogressive taxes indicates that taxes more tax burden on the poor, compared with the rich. It creates a relationship between contrast ratio and the ability of taxpayers to pay tax based on consumption, income or assets that the taxpayer owns.

Regressive tax system converts the tax burden disproportionately to the poor, and tend to reduce the burden on people with high paying capabilities. It involves a form of taxation that is somewhat unfair individuals paid modest, relative to their income, as is standard on all tax categories of people (who are highly paid and payment of humble). Regressive taxation is used in reference to fixed taxes, where each individual is taxed on an amount equal to the money, regardless of income level. For example, federal and state taxation of cigarettes and reactionary, and low-income smokers pay the highest taxes in income compared with high-income smokers. However, on the positive side, taking advantage of tax declared like this is that it helps to free up more funds for investment, high-income individuals, as they tend to save more of their income.

The difference between progressive and regressive tax

Progressive taxation refers to a form of taxation with income paid by the individual, and increases with increasing income. People with higher income pay more total taxes at the top rate. Thus, a person with an income of $ 200,000 to pay tax of 20, 000 (tax rate 10%), whereas the person an income of $ 50,000 would pay a tax of $ 4, 000 (tax rate of 8%). In the case of regressive tax, proportion of income paid in taxes, decreases with an increase in income. This is in contrast to direct progressive, with taxes paid, rises with increasing income. The sales tax on grocery products to be a form of regressive taxation because of the fact that the individual pays the poor to the same amount of tax as a wealthy person. The US tax system contains a mixture of both progressive and regressive taxes.

Regressive tax system also includes taxes on necessities such as transport, housing and clothing. This is because the income elasticity of demand for these essentials is less, thus increasing the proportion of the budget is a modest person who paid the tax. Taxes on alcohol and tobacco are also a form of regressive taxation because both the lowly paid individuals highly paid consume these products. Property taxes sometimes also comes under this, because property taxes have a high percentage of the budget of an individual who has a low income, than it does for an individual with a higher income.

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All About The History of Taxes

The tax has evolved into federal, State and local in the United States in response to the changes that have taken place in the country. Over the years, successive Governments have played a vital role in imposing or cancelling different types of taxes, which affected every aspect of the country's growth. History helps us understand the gradual changes in society and economy growth and the role of Government.

Taxes in America

Between the period of colonization and the pre-revolutionary era, primarily taxes levied by various colonies on the imports and exports of tobacco, sugar, distilled alcoholic beverages, vehicles and property and slaves. Some of the Middle colonies as property tax or tribute imposed on all adult males. The objective of the tax regime colonies only to facilitate the smooth operation of the colonies and fill the coffers of England. First, the tax imposed on the American colonies, in 1765, when the English Parliament passed the law of nature, with a tax on tea. All of these taxes on the difference between the British and the Americans, leading to the Revolutionary War of 1775.

Another revolution, in accordance with the articles of Confederation, adopted in 1781, and the right to levy taxes only with each province, as the country has very few nation-building responsibilities as a coherent whole. However, upon the adoption of the Constitution in 1789, it was very clear that the drafters of the law the Government cannot function if its resource collection depends on the whims and fancies of other States. The Constitution supported the Conference to "put ... And collect taxes, duties, levies, excise and pay debts, provide for the common defence and general welfare of the United States. "the collection, however, was left in the States. Since then, the Federal Government imposed several new taxes, one of them was the first direct tax on the owners of the slave houses, land and real estate. This was done to raise funds to support the confrontation with France in 1790. Direct taxation was abolished by President Thomas Jefferson in 1802.

Experienced civil war of 1862 enacted the nation's first income tax law by Congress. Also in earlier restoration of excise tax and a tax on personal income. Personal income tax is 3 percent on all income above $ 800 a year. The internal revenue services (IRS) came into existence when President Lincoln and Congress, in 1862, created the post of Commissioner of internal revenue, enable to collect taxes on behalf of the nation. The nation's civil war also fell further, new tax laws passed. And a tax on all trades and crafts, goods such as drugs and pharmaceutical patents, telegrams, gunpowder, iron, leather, piano, yachts, billiard tables, playing cards, alcohol. And the estate tax on all properties, imposes tax follow-up. Helped a large number of internal revenue taxes amounting to more than $ 310 million. Most taxes were abolished after the end of the civil war.

Amendment 16 of the Constitution of income tax permanently as part of the tax system in the United States. This amendment gave Congress not only the legal authority of the income tax on individuals and corporations, but also the right and need to know about all the details of individuals or businesses. This was done in 1913. Another amendment to income tax law in 1916 to provide all illegal entry within the scope of the tax. This period saw many of the tax evasion charges. The period between World War I and World War II, and saw that many of the new tax laws enacted, mainly for the purpose of raising funds for the war. Between the wars plunging the economy during the great depression led to the Social Security Act in 1935, famous also known as unemployment compensation tax. The provisions of this law was to provide payments to workers who have lost their jobs, and public assistance to the elderly, the needy and those with special needs, minors to ensure social security for them.

By the end of the second world war, the tax system has developed very well. Featured tax recovery Act of 1981, popularly known as the Reagan tax cuts reduce 25% of individual slides, spread over 3 years. Other new features adopted an economic standpoint, and incentives for individuals and businesses. And enter another amendment to the Social Security Act to include the disabled, widows, too. In 1965, Congress passed the health care program, making mandatory medical care for persons aged 65 or over, regardless of their income.

August 10, 1993, President Clinton signed into law the revenue Reconciliation Act to reduce about $ 496000000000 in federal deficit. In 1997, the tax law is another provision to reduce the capital gains tax for individuals and tax incentives for education and $ 500 per child tax credit. One of them was under Bush has seen many more tax laws are passed, and the economic growth and tax relief Reconciliation Act that will help taxpayers save up to $ 1.3 trillion in taxes over 10 years. Business tax age has been extended since 2005 until 2010, and raising the exemption for the alternative minimum tax, and add provisions to convince individuals incentive to save more for retirement. Every tax law passed in the United States has seen many changes since the colonial era, to enable the country and its citizens.

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The Meaning Of Tax Liability Term

"Taxes" means fees imposed by the Government on the citizen, organization, company, group of people, or wealth, or even a work object. In theory, the Government can impose taxes on anything and everything. One of the largest shares on taxes goes as follows:

The art of taxation consists in so plucking the goose and get as much as possible of the feathers with a smaller amount of hissing. ~ Jean Baptiste Colbert, Finance Minister, France in the reign of Louis XIV by his Majesty, King of France and Navarre.

But modern governments have never been ruthless in imposing taxes on its citizens. In today's world, generally on the basis of income tax person, organization or enterprise. Such a tax is fair and equitable for the people and they have to pay only commensurate with their income. However, there are many other taxes paid to the Government indirectly. Some of these are taxes on goods and services purchased from us. It is known that the income tax a direct tax, and is known as the sales tax and excise tax. There are many many other taxes, such as payroll taxes, which are some of the most important conclusions that are made when employers calculate taxes on salaries.

Common tax levied on almost all over the world including; income tax, customs duties, value added tax, personal property tax, wealth tax, property tax, capital gains tax, corporation tax, and excise tax.

The tax liability

Tax liability is essentially the value of unpaid tax. In some cases, Governments also charge interest on the amount of unpaid taxes. The term is also used in cases where tax liability estimated tax on the person or organization has taxable activities. For example, the company's tax liability is so much more to the individual. Again, the activities of organizations such as production and export, etc., also affect the tax liability.

Tax liability can be calculated from a certain person or organisation is easily calculated. In the United States. Federal taxes are collected by the internal revenue services (IRS). Issues guidelines on IRS tax liability of the person or organization. Annual tax assessment can collect percentages of taxes and deduct them from the estimated income for the accounting year. For example, the income tax rate is applied to the total profits of the organization. Sales tax is applied to production and trading account.

The tax liability is paid by the organization or people every year to the appropriate government agency, but it keeps on piling up. Many organizations and thus prefer to prepare separate protected or designated for tax liabilities.

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