Learning more about taxation
- By Jack Landry
- Published 02/16/2010
- Auditing
- Unrated
Learning more about taxation
Have you ever wondered why we are taxed as citizens of the United States? Some people have just accepted taxes as a way of life without looking into the use of our taxes and the purposes of our taxes.
Our taxes have a large impact on our country. They enable our country to run the way it is.
From a historical context, the funds that are provided by taxation have been used by countries and states in every corner of the world to carry out a variety of functions.
Tax systems are believed to have been thought to have been instilled in Ancient Egypt around 3000 BC. The first dynasty of the Old Kingdom in Egypt is the earliest tax system we know of.
The pharaoh in this government would conduct a biennial tour of the kingdom in which he would gather all of the taxes from his people. There is also a biblical record of taxation in the book of Genesis.
Some governments have used taxes to pay for war, the enforcement of law, to keep public order, the protection of property, to boost the economic infrastructure, public works, social engineering and the operation of the government itself.
The public services such as welfare are also paid for using the tax dollars of the United States citizens. The public service sector is very broad and controls everything from public transportation to public education.
Different governments use different kinds of taxes and the rate of taxation can vary greatly from country to country. Taxes enable the government to distribute the financial burden of the country on different individuals or classes of the population involved in taxable activities.
The tax system of a nation is often a reflection of the type of government that is ruling, the values of the country as a whole and the values of those that are in power. There are many important questions that go into deciding how the tax system will work in a country.
Distributing the tax burden amongst the citizens, deciding who will pay how much, figuring out how to collect the taxes and how the taxes are to be spent are all important questions that governments ask when developing a tax system.
To remember the purposes of taxes simply all you have to remember is the rule of the Four R's. These Four R's describe the reason that the majority of tax systems have been passed and are made into policy.
The first R is Revenue. The spending money that is pooled to use on roads, schools, hospitals and even on different legal systems is almost always collected from taxes.
The second R has become a controversial subject in America. Redistribution usually is understood to mean that the wealthier citizens will pay more taxes and their money will be redistributed to the poorer sections of society.
Repricing is the third R. The government can encourage or discourage different activities and ways of life by taxes and tax breaks.
For example, in America there is a very high tax on cigarettes. This tax is to discourage people from smoking because of the adverse affects that tobacco has been proven to have on human beings.
Finally the last R means Representation. In the early days of America the citizens petitioned taxes saying that there should be "no taxation without representation."
This slogan meant that the citizens demanded that there was some form of accountability from the government if the government was going to tax them. It has been proven that direct taxes make citizens demand some accountability for their money while indirect taxes have smaller effects on the public.
Income tax a very large part of the United State's government's tax revenue. The income tax system in America is bracketed and requires that those individuals who make more money also pay a higher portion of their money.
The taxes in America are due in the first few weeks of April every year. For many American's this can be a very stressful time of year.
The Internal Revenue Service is in place to enforce the laws of taxation. There are times when people get themselves into trouble with this system and they need to seek professional help.
If you every find yourself in trouble with the tax system it is usually most beneficial to go to a professional for help because of how complicated the tax laws and regulations can be. The professional that you choose should be able to help you with your tax crisis.
Our taxes have a large impact on our country. They enable our country to run the way it is.
From a historical context, the funds that are provided by taxation have been used by countries and states in every corner of the world to carry out a variety of functions.
Tax systems are believed to have been thought to have been instilled in Ancient Egypt around 3000 BC. The first dynasty of the Old Kingdom in Egypt is the earliest tax system we know of.
The pharaoh in this government would conduct a biennial tour of the kingdom in which he would gather all of the taxes from his people. There is also a biblical record of taxation in the book of Genesis.
Some governments have used taxes to pay for war, the enforcement of law, to keep public order, the protection of property, to boost the economic infrastructure, public works, social engineering and the operation of the government itself.
The public services such as welfare are also paid for using the tax dollars of the United States citizens. The public service sector is very broad and controls everything from public transportation to public education.
Different governments use different kinds of taxes and the rate of taxation can vary greatly from country to country. Taxes enable the government to distribute the financial burden of the country on different individuals or classes of the population involved in taxable activities.
The tax system of a nation is often a reflection of the type of government that is ruling, the values of the country as a whole and the values of those that are in power. There are many important questions that go into deciding how the tax system will work in a country.
Distributing the tax burden amongst the citizens, deciding who will pay how much, figuring out how to collect the taxes and how the taxes are to be spent are all important questions that governments ask when developing a tax system.
To remember the purposes of taxes simply all you have to remember is the rule of the Four R's. These Four R's describe the reason that the majority of tax systems have been passed and are made into policy.
The first R is Revenue. The spending money that is pooled to use on roads, schools, hospitals and even on different legal systems is almost always collected from taxes.
The second R has become a controversial subject in America. Redistribution usually is understood to mean that the wealthier citizens will pay more taxes and their money will be redistributed to the poorer sections of society.
Repricing is the third R. The government can encourage or discourage different activities and ways of life by taxes and tax breaks.
For example, in America there is a very high tax on cigarettes. This tax is to discourage people from smoking because of the adverse affects that tobacco has been proven to have on human beings.
Finally the last R means Representation. In the early days of America the citizens petitioned taxes saying that there should be "no taxation without representation."
This slogan meant that the citizens demanded that there was some form of accountability from the government if the government was going to tax them. It has been proven that direct taxes make citizens demand some accountability for their money while indirect taxes have smaller effects on the public.
Income tax a very large part of the United State's government's tax revenue. The income tax system in America is bracketed and requires that those individuals who make more money also pay a higher portion of their money.
The taxes in America are due in the first few weeks of April every year. For many American's this can be a very stressful time of year.
The Internal Revenue Service is in place to enforce the laws of taxation. There are times when people get themselves into trouble with this system and they need to seek professional help.
If you every find yourself in trouble with the tax system it is usually most beneficial to go to a professional for help because of how complicated the tax laws and regulations can be. The professional that you choose should be able to help you with your tax crisis.
Jack Landry
Jack R. Landry has worked since 1988 as a tax attorney. He has written hundreds of articles about finding a tax lien.
Contact Info:
Jack R. Landry
JackRLandry@gmail.com
http://www.TaxCrisisInstitute.com
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