US Tax Code reform

US Tax Code reform

Introduction

It is the universal truth among Americans that the tax code system in America is very complex and it is do jumbled that most of taxpayers uses commercial software or accountant regarding filing their tax returns.

Taxation in the United States is one of the most important tools of business regulation. However, the U.S. tax system is considered one of the most difficult in the capitalist world. Its distinctive features are a variety of types and levels of tax collection, frequent revision of the tax legislation, the presence of a huge number of tax credits and benefits, open space all kinds of maneuvers (Angus et al., 2013).

Discussion

Taxation in the United States is one of the most important tools of business regulation. However, the U.S. tax system is considered one of the most difficult in the capitalist world. Its distinctive features are a variety of types and levels of tax collection, frequent revision of the tax legislation, the presence of a huge number of tax credits and benefits, open space all kinds of maneuvers.

One of the authors of the U.S. Declaration of Independence Benjamin Franklin (1706-1790) once said the sentence: in life there is nothing inevitable, except death and taxes. Since then, the U.S. tax system is improved, has been increasingly branched nature, contributed to the development of market relations. It meets the objectives not just fiscal - to provide revenues to the federal budget, the state and local budgets. Tax systems of developed market countries in addition to the fiscal function of filling the budget successfully perform the functions of regulation of economic and social development and international relations. The latter contribute to customs duties, excise, and value-added tax. Formation and movement of budgetary funds is central to the implementation of the economic policy of the American government (Clemons & Kinney, 2013).

Tax system is usually a three-tier. Main link in the U.S. financial system is the federal government's budgetary mechanism, i.e., state taxes have played a leading role, and local taxes - a supporting role. Although their importance and value in different countries varies accordingly. Taxes, giving the largest and most stable income to the federal budget. It accounts for approximately 70% of revenues and expenses. Countrywide are usually the direct taxes, among which the most important are the income tax on individuals and corporate income tax.

But local authorities have considerable financial resources of their own, primarily due to local taxes. And in the last 10-15 years in the United States, as, incidentally, in most Western countries, has experienced rapid growth in local government finance, the increase in their share of the total fund mobilization of funds through the financial system (Webber, 2010).

Regional and local taxes - mostly indirect: the value added tax, sales tax, excise duties. Local governments have a major own sources of income of a property and land taxation, commercial taxes. Taxation legislation, including local taxes, saves the state in their hands.

Simultaneously, the local finance shifted a substantial ...