Why Are Taxes In The Usa So High?

By Gabriel Adams Everybody in the United States is asking this same question about why taxes are so high and what can be done to reduce them. From the grocer on the corner to the parents trying to provide for their family’s needs, consumers are very concerned about inflation and debt. Even very well-educated economists are shaking their heads lately, trying to figure out how to get the balance back into the United States economy. Federal taxes in the United States are administered by the Department of Treasury, through the Internal Revenue Service. Besides the individual income tax, Social Security tax, and Medicare tax, there are many other forms of taxes. There are state and local taxes that are taken out of the citizens’ paychecks. Besides these taxes, there are taxes on products and taxes on services that are provided as well as many other types of taxes. When government spending is higher, taxes increase to help cover those expenses. The taxation system in the United States is very complicated and is confusing, even to many of the country’s economists. In addition to excessive spending by the U.S. government, the economy is also affected by the irresponsible spending of the consumers of the country. One activity that has had a profound effect on the imbalance in the U.S. economy is the irresponsible use of credit cards. Since use of credit cards has become an everyday thing, people in the U.S. have been spending more and more above their means. Unfortunately,…

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Taxes, Income And Other Ones

By Frank Hague The story of American income taxes begins 1812. The 1st attempt to inflict an income tax on Americana occurred as a result of the War of 1812. At the end of two years of war, the federal government owed an unbelievable $100 million of debt (in inflationary terms, it probably had the same impact on the treasury as $100 billion debt would today). To pay for this, the government doubled the rates of its major source of revenue, customs duties on imports. This measure obstructed trade so severely that the government ended up bringing in less revenue than it had received from the lower rates. It's ironic that the American Revolution was began because of Tea Taxes in Boston. Also, excise taxes were imposed on goods, and commodities such as housing, slaves and land were taxed pay for the war. After the war ended in 1816, these taxes were repealed and instead high customs duties were passed to retire the accumulated war debt. What is Taxable Income? The amount of income utilized to arrive at your income tax. Taxable income is your gross income minus all your adjustments, deductions, and exemptions. A few specific taxes: Estate Taxes: One of the oldest and widely-used forms of taxation is the taxation of property held by an individual at the time of demise. The US currently has Estate Taxes, although there are proposals to do away with them. Such a tax can take two forms of implemantation. A direct estate…

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