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2005 Taxes Article
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A Brief Assessment of Income Taxes
from:Income taxes are the obligatory financial contribution levied against the annual earnings of both individuals and companies. Every year, income taxes are collected by the federal government via the filing of income tax returns. Every individual and company is responsible for truthfully and accurately reporting all of their income to the government in order for the correct amount of tax liability to be applied. The collection of this revenue pays for a number of federal programs, facilities and services that a large part of the population depends on every day. Federal income tax returns and state income tax returns are often filed together.
The three most common tax systems currently in use are progressive, regressive and proportional. A large majority of countries use the progressive model to collect income taxes. In this form of collection the higher the income, the higher the tax rate. Individuals are grouped into certain tax brackets based on income. To help reduce their tax burden, individuals are allowed certain deductions that can be subtracted from their gross income. These deductions can be anything from educational expenses to certain medical care expenses. A deduction is not the same as a tax credit. Tax credits reduce what an individual owes in total income taxes.
While both individuals and companies are required to pay income taxes, the tax return for a business has a number of characteristics that non business returns do not. With corporate taxes, the net income is taxed instead of the gross income. This is because businesses often have many more deductions and expenses than the average individual. These expenses can be anything from advertising to office supplies and equipment. Accurate accounting is a must for businesses in order for the appropriate corporate tax codes to be applied. To avoid penalties and fines, businesses often rely on professional tax preparers to astutely organize their financial information at tax time.
The long history of organized civilization has seen many tax collection systems come and go. While they have all faced much criticism, taxes are nonetheless very necessary to keep a country viable for its citizens. For the United States, the issue of income tax arose several times before being permanently instated in 1913. Except for the dozen or so countries that do not levy a personal income tax, nearly every nation has some debate about their tax system. In the United States, one of the most common complaints is the long and confusing tax codes; however, the preparation of income taxes has recently become much easier with the advent of online filing.
2005 Taxes News
Miss. couple files appeals in Katrina case - New Orleans Times-Picayune
JACKSON, Miss. (AP) — A federal appeals court has scheduled arguments for Feb. 4 in a Mississippi homeowner's appeal involving a Hurricane Katrina damage case. David and Marilyn Aikens filed an appeal of a ruling by U.S. District Judge L.T. Senter ...
Read more...What's worse: Taxes or cuts? - Everett Herald
OLYMPIA -- Voters are probably the best, and only, option for lawmakers who think higher taxes will be needed to avert deep cuts in spending on education and social services. Politically and mathematically, it will be easier to ask the electorate for ...
Read more...Sennett assessment official who hasn't paid property taxes resigns ... - Syracuse Post-Standard
Sennett, NY -- Karen Green, the Sennett assessment review board chairwoman who came under fire this week because she has not paid any property taxes since 1999, has resigned from the board, town Supervisor David Sikora said today. Green sent an email ...
Read more...Computer errs, Monroe businesses to pay - New Orleans Times-Picayune
MONROE, La. (AP) — City officials in Monroe will ask about 2,500 commercial water customers to pay a total of $185,000 in state sales taxes that the city failed to collect. Mayor Jamie Mayo said the problem, discovered in a recent state audit ...
Read more...Obama's performance czar has tried to improve IRS - Forbes
Nancy Killefer, the management consultant chosen by President-elect Barack Obama to make federal agencies work better for the public, has a lot of experience trying to improve the agency taxpayers love to hate, the Internal Revenue Service. The ...
Read more...Tax book as usual or unfair boasting? - The Columbus Dispatch
Two years of the tax cuts couldn't have gone forward without Gov. Ted Strickland's OK, the note writer said. The state income-tax booklet now arriving in your mail includes this message: You can thank Democratic Gov. Ted Strickland for your tax cut ...
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