The federal tax system was created fund our government. No one enjoys spending the government some of our hard earned money, however if we are going to protect our country and shell out all of the entitlement programs created by our government we must. However have you ever considered if the tax system we use is actually a fair system? Let’s take a look at how a product is create.
Originally if the constitution was written the founding father had stipulated that any tax must be based and equally divided one of the each state’s population. However, this pitted the greater states and smaller states against one another and not one of them could decide on that which was a reasonable amount. So the congress amended the constitution so that they could eliminate the state’s population when figuring the way to get taxes from individuals.
Now you have a modern tax code that will require a mathematical degree to even be in a position to figure your taxes correctly. The congress makes the tax laws so complex therefore the person with average skills must search for a tax preparer when filing their taxes annually. Currently the Fatca Tax singapore within our country works in this way. You’re employed as well as the government takes your “fair” share of taxes straight from your paycheck which means you never even begin to see the money. This was really a brilliant move through the government because if there is a constant have the funds then you don’t miss it.
Before it was taken directly out of your paycheck you’re needed to write the federal government a cheque at the end of the year. Once you already have the money you miss it when you write the check and also this kept the politician’s spending in check because the complaints were heard loudly once the checks were written. Now we have a tiered income tax system saying the harder you make the more you are going to pay in taxes.
The “working poor” in our country do not pay any federal income tax. At the end of the year if you fall into that class you receive every dime you paid at the spine as your money back look for the government. In case you are considered middle class then you’re planning to pay 15% to 35% in your income after you have applied for your allowed deductions. These deductions are suitable for yourself, your spouse, and your children. It’s also possible to be able to itemize reducing the income level you have to pay taxes on.
Statistics show that 75% of the country’s revenue from income taxes comes from only 1% of people. This percentage of the population makes over $200,000 per year most likely through the income or you will be the who owns an S corporation (small company) that makes a sizable profit. So whether our federal income tax method is fair or otherwise is going to be debated for many years and also since our country needs money to perform, it’ll do not be eliminated.
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