Essay - American Tax System vs. Other Countries the Federal Government First...

American Tax System vs. Other Countries

The federal government first imposed an individual income tax in 1862 as an emergency means of f*****ancing the Civil War. It also established the Bureau ***** Internal Revenue, predecessor of ***** Internal Revenue Service. ***** rates were 3 percent on income from $600 to $10,000 and 5 percent ***** income above $10,000. Later in the war the maximum rate *****cre*****ed ***** 10 ***** ***** income." (Encarta)

My how times have changed. This paper will compare the tax systems of four different countries to the American tax system. The ***** ***** that ***** been chosen are South Africa, Mexico, Hong Kong, ***** New Zealand..

First lets attempt to briefly (if that were possible) explain the American tax system.

***** American Tax System

America has a progressive tax system meaning ***** greatest tax burden is on people who have the most income. The American tax system can be described as long and complicated. The following summary ***** seek to explain the tax ***** in simple terms.

Individual Income *****: this includes employment earnings, interest income, ***** dividend and capital gains income. In addition there is taxation of income earned ***** rental properties, royalties, alimony, game winnings (just to name a few). Deductions include Medic*****l expenses, interest on student loans ***** mortgage loans, charitable contributions, the cost of state and local taxes. (Encarta) The following is a tax schedule for single individuals for the 2001 tax season.

Single *****dividuals

Provided by If taxable ***** is over but not over the tax is plus % on the excess over Corporate Income Tax: Taxable income for corporati*****s is found by subtracting the number of expenses from gross profits. Much like the individual income taxes corporations are taxed on ***** income, dividend income, capital gains, rents, and royalties. The fact that shareholders have to pay a dividend t*****x on income that has already been at ***** corporate level is called double *****. ***** policy is said ***** discourage the formation of ***** in the U.S. As Follows ***** rates:

***** taxable income is over But not over The tax is:

15% of taxable income

7,500 + 25% of ***** over $50,000

1*****,750 + 34% of excess ***** $75,000

22,250 + 39% of excess over $100,000

113,900 + *****% of excess ***** $335,000

3,400,000 + 35% of excess over $10,000,000

5,150,000 + 38% ***** excess over $15,000,000

35% of taxable *****

State and ***** Taxes: In America ***** are also state ***** local taxes such as property tax.

***** argue that ***** ***** tax system ***** in need of reform. Not only to provide tax breaks ***** the middle class ***** to also encourage the ***** ***** more bus*****esses. *****re ***** ***** speculation ***** a fl*****t ***** rate would be good for *****. In the meantime President Bush has introduced a tax cut "The Economic Growth and Tax Relief Reconciliation Act of 2001, enacted under the administration of ***** George W. Bush, sought to lower taxes. It called for the gradual