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Repond to stsudent. This was there answer. I need you to respond to what they have wrote. Respond in 200 words. 1. The main types of taxes used to fund the public sector include income taxes, payroll taxes, property taxes, sales taxes, and excise taxes. While other taxes exist, these five types of taxes are the most prominent and generate the majority of revenue used to fund the public sector. The Federal Government raises the majority of its revenue from the combination of income taxes, payroll taxes, and excise taxes. These taxes raised approximately 94.1% of federal tax revenue in 2013 (Miller, 2016, p. 134). Corporate income taxes generate additional cost to the producer which must be passed on to the consumer in order to generate profits. Individual income taxes reduce the amount of capital the consumer has to spend. Payroll taxes are shared equally by both the producer, in this case the employer, and the consumer; however, the real cost is passed on to the consumer in the form of reduced wages (Miller, 2016, p. 135). Finally, excise taxes are levied on the product and must be paid by the producer. Ultimately, the consumer is affected by the higher price and ends up paying a portion of this tax. State and Local Governments raise their tax revenue, which accounted for 47.4% of total revenue, from sales taxes, property taxes, and income taxes (Miller, 2016, p. 134). Sales taxes affect mainly the consumer. The additional cost is not passed on to the producer. Property taxes are assessed on the value of property owned. The consumer bears the burden of these taxes, and as a result, there are residual effects on producers due to a lower demand for high value items. The impact of income taxes is the same for the producer and consumer as discussed in the preceding paragraph. 2. The government finds numerous ways to fund governmental operations through taxing at a federal, state and local level. There are many types of taxes excised at each level of government. The most well- known tax is arguably the federal income tax, although most states also collect income tax. Alaska, Florida, Nevada, South Dakota, Texas, Washington and Wyoming do not collect state income tax (Kahn, 2015) In the United States the income tax is progressive, meaning that as the taxpayer earns more money the tax rate raises. In effect, those who make the least money pay the lowest taxes proportionally whereas those earning the most pay the largest amount proportionally. Regressive and proportional taxes are other types of income taxes. A regressive tax has those making the least money paying the highest proportionally and the highest earning paying the least. A proportional tax, also called a flat tax, has all taxpayers paying the same proportion of their income. The federal government also collects Social Security, or FICA tax, medicare tax, capital gains taxes, and corporate taxes. The tax burden of some of these are spilt between the employee and the employer. .
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Respond to student. This was there answer. I need you to respond to what they have wrote. Respond in 200 words. ECON CLASS-JEN 1. The main types of taxes used to fund the public sector include income taxes, payroll taxes, property taxes, sales taxes, and excise taxes. While other taxes exist, these five types of taxes are the most prominent and generate the majority of revenue used to fund the public sector. The Federal Government raises the majority of its revenue from the combination of income taxes, payroll taxes, and excise taxes. These taxes raised approximately 94.1% of federal tax revenue in 2013 (Miller, 2016, p. 134). Corporate income taxes generate additional cost to the producer which must be passed on to the consumer in order to generate profits. Individual income taxes reduce the amount of capital the consumer has to spend. Payroll taxes are shared equally by both the producer, in this case the employer, and the consumer; however, the real cost is passed on to the consumer in the form of reduced wages (Miller, 2016, p. 135). Finally, excise taxes are levied on the product and must be paid by the producer. Ultimately, the consumer is affected by the higher price and ends up paying a portion of this tax. State and Local Governments raise their tax revenue, which accounted for 47.4% of total revenue, from sales taxes, property taxes, and income taxes (Miller, 2016, p. 134). Sales taxes affect mainly the consumer. The additional cost is not passed on to the producer. Property taxes are assessed on the value of property owned. The consumer bears the burden of these taxes, and as a result, there are residual effects on producers due to a lower demand for high value items. The impact of income taxes is the same for the producer and consumer as discussed in the preceding paragraph. 2. The government finds numerous ways to fund governmental operations through taxing at a federal, state and local level. There are many types of taxes excised at each level of government. The most well- known tax is arguably the federal income tax, although most states also collect income tax. Alaska, Florida, Nevada, South Dakota, Texas, Washington and Wyoming do not collect state income tax (Kahn, 2015) In the United States the income tax is progressive, meaning that as the taxpayer earns more money the tax rate raises. In effect, those who make the least money pay the lowest taxes proportionally whereas those earning the most pay the largest amount proportionally. Regressive and proportional taxes are other types of income taxes. A regressive tax has those making the least money paying the highest proportionally and the highest earning paying the least. A proportional tax, also called a flat tax, has all taxpayers paying the same proportion of their income. The federal government also collects Social Security, or FICA tax, medicare tax, capital gains taxes, and corporate taxes. The tax burden of some of these are spilt between the employee ...
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Week 5 Discussion Responses - Econ Discussion for Response 1 By: P,V Week 5 - Taxes Currently, our tax system is a progressive tax system. This means that the more money you make, the more money you pay. This way, those who do not struggle to put food on the table can afford to pay the government. In considering a better tax system, there should be five fundamental theories: fairness, adequacy, simplicity, transparency, and administrative ease. In fairness, everyone pays a fair share of taxes within horizontal equity meaning that everyone pays a similar proportion of tax. In adequacy, there should be an adequate amount of taxes to provide enough revenue to meet the needs of society. Simplicity meaning that having a simpler tax system will help taxpayers understand the tax system and, therefore, remain compliant. Having transparency and knowing who is being taxed and how much. Everyone is also aware of what the money is being used for. Finally, with administrative ease compares to simplicity where the tax system is not too complicated or expensive for both the taxpayer and collector (Oklahoma Policy Institute). Raising taxes has some pros and cons. Some pros include: ensuring that services to citizens are available and needs, such as road repair, are completed without needing bonds. Cons include having a less disposable income to citizens as well as lowering the consumer expenditure which hurts businesses and the overall economy. Another con is that raising the tax encourages excessive government spending. Some advantages of a progressive tax system include allowing those who are poorer to live more comfortably. It also helps the government establish higher tax brackets to generate revenue. Other advantages of a progressive tax system are that it can potentially produce more total income for the government and it improves the spending power of those who are of lower income. Disadvantages include having complex incentives and rules drive the cost of compliance way up (Murphey, 2017). Income tax refers to the amount one pays on total income from businesses to the federal and state governments. Sales tax refers to the percentage paid by consumers when purchasing certain items. One involves the business owner and the other involves the consumer. The estate, or death/inheritance tax also has pros and cons. Pros include the same amount of tax is charged to everyone, only approximately 0.2% of people are eligible for the death tax, almost no employers pay the estate tax upon transfer, and estates worth more than $5 million have an average of 55% of net worth that was never taxed. Cons include assets are taxed at the same rate of liquid assets. The tax affects lower income families than others. The estate tax is based on the current value of the property and government can tax up to 3 times on estate tax (Brandon Gaille, 2015). Taxes are necessary to pay the government in order for states to have the necessary things to keep.
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Chapter 1 Introduction to Federal Taxation and Understanding the Federal Tax Law OBJECTIVES After completing Chapter 1, you should be able to: 1. Identify types of taxes used by federal and state governments to raise revenues. 2. Understand the methods of tax collection and the trends shown by tax collection statistics. 3. Differentiate between tax avoidance and tax evasion. 4. Recall the underlying rationale of the federal income tax and its historical development. 5. Describe the route a tax bill takes until enacted into law. 6. Define the basic tax concepts and terms of federal income taxation. INTRODUCTION Federal taxation is the fuel by which Americans power their “Ship of State.” The tax structure which supports our federal government has gone from quill and ink records of revolutionary assessments to lightning speed computers which calculate and validate millions of income tax returns submitted by individuals and corporations. Federal taxes, in addition to the income tax, include a variety of other taxes covering estates, gifts, and customs, as well as excise taxes, and other minor categories of tax. Our governments can thus select among a variety of tax alternatives to produce the revenues required to operate national programs and carry out national policies. Taxes are big business. Unfortunately, many business decisions are made in the United States today without regard to federal tax consequences. Individuals are concerned with personal income tax decisions and gift and estate tax decisions, while corporations concern themselves with corporate taxes, personal holding company taxes, and accumulated earnings tax decisions. Further, businesspersons must concern themselves with the choice of business entity: corporation, partnership, or S corporation. Differences in tax costs can be considerable. Advantages and disadvantages are virtually unlimited. This book presents information which is required knowledge if you make business decisions. While most businesspersons (and many advisors) think about how to make decisions in nontax terms, the tax accountant bears the burden of introducing tax considerations. The topics presented in this book must be viewed in terms of decision-making—therefore, tax planning and tax research are of the utmost importance. Tax decisions are not made in a vacuum. Lawyers, accountants, financial managers, and a host of other experts work as a team in the decision-making process. This book is intended to serve as a guide for accounting students and for MBA students interested in gaining insight into and expertise in the tax complexities of business decision-making. OVERVIEW This chapter presents information on the magnitude of federal taxes collected and on taxpayer obligations. Then, a brief historical account is presented of federal tax collections prior to and after the adoption of the Sixteenth Amendment to the Constitution, which enabled Congress to levy “taxes on incomes, from whatever source derived.” Foll ...
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Insurers' journeys to build a mastery in the IoT usage
Insurers' journeys to build a mastery in the IoT usage
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