The Fair Tax Bill

The Fair Tax Bill (Your Name (Your University

2007

Abstract

This narrates the historical highlights that marked the development of the taxation system in the United States . It covers the wars of England until the reforms established by the different Presidents of the United States . It also outlines and discusses the current U .S . tax system . The different levels of tax jurisdiction , i .e those imposed by the Federal government those imposed by the state government and , those imposed by the local governments , are explained lengthily . It includes a brief

discussion of the different types of taxes these jurisdictions impose , as well as their percentages and tax base

It traces the history of the creation of the Internal Revenue Service (IRS ) formerly the Bureau of Internal Revenue and the various reorganizations it went through such as a change from geographical system to a functional system . It also tackles the marked characteristic of its culture - that of secrecy and of intrusiveness to the privacy rights of the taxpayers

Finally , it presents the proposed Fair Tax Act or H . B . no . 25 authored by Representative John Linder (R-Georgia , 7th ) of the House of Representatives . It proposes the abolition and elimination of the federal income tax code and other hidden taxes in lieu of a 23 on final sale of goods and services . Corollary to this , the 16th Amendment of the Constitution , withholding from wages and salaries , filing of individual returns , the IRS , all federal income taxes would have to give way Moreover , a rebate of sales tax for expenditures equivalent to the federal poverty level , is assured . It is believed that this proposed tax reform espouses the equality principle mandated by the Constitution and it will result in encouraging capital formation and investment and therefore , consequently promote efficiency and economic growth

Introduction to the U .S . Tax System

Historical Perspectives

The U .S . tax system is dynamic and is marked by changes as it responds to the changing times and changing roles that government has defined itself to take (DOT , n .d . During the colonial era , the taxes imposed were for imports and exports , property taxes , poll tax for every adult male , real estate taxes , excise taxes and those based on occupation . There was no need then for raising revenues until expenses were incurred for the wars of England (DOT , n .d . The Stamp Act and tax on tea were directly imposed on American colonies . This sparked the American Revolution considering that it did not have representation in the English Parliament that enacted the tax measures . They claimed that taxation without representation is tyranny (DOT , n .d

In 1781 , the Articles of Confederation was adopted . Under this system , each State had the power to impose tax as it is deemed as sovereign . The national government on the other hand , relied on donations from the States and did not have a tax system (DOT , n .d

The ratification of the Constitution in 1789 , brought about the authority and power of the Federal...