Taxes are as inevitable as death. We all have them and have to pay them whether it be through sales tax, income tax, property tax, use tax, there are taxes on just about everything.
These taxes are monies that are collected by the government to distribute as they see fit. It is used to pay for public services, help those in need and pay the government salaries. There are many kinds, types, and styles of taxes but one thing are for you, every person will have to pay them in one way or another.
Taxes have been around for generations and it is only getting worse on what they do tax. In the early settler days, there wasn’t near as many taxes as there are today and it is only going to get worse with time.
Changing Tax Laws
Because of the changing times, there are changes needed to the tax laws. This is what is known as National tax reform. This can affect people in a variety of ways, some good and some bad. And, many times it really depends on what taxes you pay into. Some businesses, for example, pay social security taxes and unemployment that are things that an average person doesn’t really think about.
When your employer pays you a salary they have to pay their taxes on that salary as well. This means that your employer doesn’t just have to worry about covering your wages, they have to worry about other costs as well. And, so do you, you will be paying personal income tax on those wages as well as other tax obligations too.
Tax reforms can be done on a state level as well. This simply means that there are changes in the way or amount of taxes that are going to be collected. This is quite common actually at a state and local level where the needs are rapidly changing.
Things such as larger schools or better-developed roads can affect the taxes at a local level but not as much at a state or national level. It is important to understand these different levels and what they are all about. There are also government programs that are in place to help those in need. These programs are often at a state level with the states being independent of how they allocate the money collected.
When you do your taxes you have probably noticed there is a state income tax return and a federal income tax return. Both sets of government are ensuring that you pay what you owe. They act independently from one another and are responsible for different things and programs.
The military, for example, is funded on a national level and is a large expense. There is NASA that is another nationally funded organization. And, there are national programs such as Medicare that help our elderly with health insurance.
And, Medicaid is both state and federally funded for example. Medicaid is health insurance for those that have lower income or those that qualify. All of this needs to be in check with what taxes are collected and a tax reform does just that.
Shift Frequency © 2020 – What Is National Tax Reform?