The government tax system was set up to fund our government. No one enjoys spending the government any of our hard earned money, if however we are going to protect our country and fork out all of the entitlement programs developed by our government we must. However have you ever considered if the tax system we usage is is a fair system? Let’s take a peek at the way the system is create.
Originally when the constitution was written the founding father had stipulated that any income tax should be based and equally divided on the list of each state’s population. However this pitted the bigger states and smaller states against one another and none of them could settle on the thing that was a good amount. So the congress amended the constitution so they could remove the state’s population when figuring the way to get taxes from individuals.
Now you have a modern day tax code that requires a mathematical degree to be able to figure your taxes correctly. The congress has made the tax laws so complex therefore the average person needs to go to a tax preparer when filing their taxes every year. Currently the usa tax singapore in our country works in this way. You’re employed and the government takes your “fair” share of taxes straight from your paycheck so you never even start to see the money. This is actually a brilliant move through the government if you don’t ever have the cash then you don’t miss it.
Prior to being taken directly from the paycheck you were necessary to write the government a check after the entire year. Whenever you actually have the cash you miss it whenever you write the check and this kept the politician’s spending in check because the complaints were heard loudly once the checks were written. Now we have a tiered tax system saying the more you make the greater you are likely to pay in taxes.
The “working poor” inside our country pay no any federal income taxes. At the end of the season should you fall into that class you get every dime you paid with the spine as your money back search for the internal revenue service. In case you are considered middle class then you are likely to pay 15% to 35% on your own income after you have taken out your allowed deductions. These deductions are for yourself, your husband or wife, along with your children. You may also be able to itemize reducing the income level you have to pay taxes on.
Statistics reveal that 75% from the country’s revenue from taxes originates from only 1% of the population. This number of the people makes over $200,000 per year either through their own individual income or if you will be the person who owns an S corporation (small company) which makes a sizable profit. So whether our federal tax product is fair or not will be debated for years to come and also, since our country needs money to perform, it will do not be eliminated.
For more info about American Tax singapore take a look at our new net page