Corporation Taxes

Corporation Taxes The Federal’ government collects a wide. variety of other taxes, some of which are shown in Table 16-3. The corporate income tax is a tax on.the profits of corporations. The top federal corporation tax rate in 1999 was set at 35 percent of...

Social Insurance Taxes

Social Insurance Taxes Virtually all industries now come under the Social Security receive retirement benefits that depend ‘on their earnings history and security taxes. The social insurance program also funds a disability program and health insurance for the...

The Individual Income Tax

The Individual Income Tax Our discussion will concentrate on the individual income which is the most complex and controversial part of the tax system. The income tax is a direct tax. and it is the tax which most clearly reflects the ability-to-pay principle....

FEDERAL TAXATION

FEDERAL TAXATION Let us now try to understand the principles by which the federal system of taxation is organized. Table 16-3 provides an overview of the major taxes collected by the federal government and shows weather they are progressive. proportional, or...

Pragmatic Compromises In Taxation

Pragmatic Compromises In Taxation How have societies resolved these thorny: philosophical questions? Governments has generally adopted pragmatic solutions mat are only partially baaed on benefit and ability to pay approaches. Political representatives know that taxes...

Horizontal and vertical equity

Horizontal and vertical equity Whether they are organized along benefit or ability to-pay lines, most modem tax item a also attempt to incorporate modem views about fairness or equity. One important principle is that of Borodin. I equity, which states that those who...