Tax Expenditures and the Tax Reform Act of 1969 in the United States

2022 ◽  
pp. 1-26
Author(s):  
Seiichiro Mozumi
Keyword(s):  
United States ◽  
Income Tax ◽  
Public Perception ◽  
Tax Reform ◽  
The United States ◽  
Tax Revenue ◽  
Tax System ◽  
Federal Income Tax ◽  
Federal Taxation ◽  
The Government

Abstract In the United States, tax favoritism—an approach that has weakened the extractive capacity of the federal government by providing tax loopholes and preferences for taxpayers—has remained since the 1930s. It has consumed the amount of tax revenue the government can spend and therefore weakened the possibility of the redistribution of fiscal resources. It has also made the federal tax system complicated and inequitable, resulting in undermining taxpayer consent. Therefore, since the 1930s, a tax reform to create a simple, fair, and equitable federal income tax system with the capacity to raise revenue has been long overdue. Many scholars have evaluated the Tax Reform Act of 1969 (TRA69), which Richard M. Nixon signed into law on December 30, 1969, as one of the most successful steps toward accomplishing this goal. This article demonstrates that TRA69 left tax favoritism in the United States. Furthermore, it points out that TRA69 turned taxpayers against the idea of federal taxation, a shift in public perception that greatly impacted tax reform in the years to follow.

The Kennedy–Johnson Tax Cut of 1964, the Defeat of Keynes, and Comprehensive Tax Reform in the United States

2017 ◽  
Vol 30 (1) ◽  
pp. 25-61
Author(s):  
Seiichiro Mozumi
Keyword(s):  
United States ◽  
Tax Policy ◽  
Income Tax ◽  
Tax Reform ◽  
The United States ◽  
Legislative Process ◽  
Tax System ◽  
House Committee ◽  
Federal Income Tax ◽  
Treasury Department

Abstract:In 1964, President Lyndon B. Johnson, the successor of John F. Kennedy, signed into law the largest tax cut in U.S. history until 1981, the so-called Kennedy–Johnson tax cut. Many scholars have evaluated it as representative Keynesian tax policy; this article focuses on the effort of the Treasury Department, tax experts such as Stanley S. Surrey and Wilbur D. Mills, the chairman of House Committee on Ways and Means, to reform the federal income tax system comprehensively—making it simpler, fairer, and more equitable—and their defeat by the 1964 tax cut. Through the policymaking and legislative process, the Kennedy administration’s Council Economic Advisers defeated the Treasury and Surrey by domesticating Keynes’s ideas on tax policy. Until the 1964 passage of the tax cut, Mills, with his inconsistent action, abandoned the accomplishment of their ideal tax reform.

scholarly journals Corporate Inversions: The Migration Of Corporate Tax Revenue

2016 ◽  
Vol 32 (4) ◽  
pp. 1137-1144
Author(s):  
Joel Barker
Keyword(s):  
United States ◽  
Tax Reform ◽  
Tax Incentives ◽  
The United States ◽  
Business Strategies ◽  
Tax Revenue ◽  
Corporate Tax ◽  
Tax System ◽  
Tax Revenues ◽  
Corporate Profits

Estimates of over 20 billion of tax revenue are lost to our economy because of corporate inversions. Therefore, lawmakers are actively exploring ways to stop the hemorrhaging of corporate tax-revenues, tighten restrictions on corporate inversions, and to find ways to collect on defer tax revenues. From a business prospective, corporate inversions are nothing less than prudent, innovative, business strategies to enhance corporate profits. However, it’s undoubtedly having a significant impact on U.S. tax revenues and ultimately reducing domestic investments. Ireland is now the most popular new home to many U.S. Corporations, especially within the pharmaceutical industry. The advantageous tax incentives offered by Ireland is a “no-brainer,” when compared to the heavy taxes levied upon domestic business. Since the Tax Reform Act of 1986, there has been no major tax reform to the United States Tax System. Despite the various proposals and recommendations made to address this growing economic issue, all concern parties are in consensus that the United States Tax System needs reform.

scholarly journals E Return Tool

2019 ◽  
pp. 526-530
Author(s):  
Pooja Aher ◽  
Manish Kirnapure ◽  
Shubhangi Nemade ◽  
Tejaswita Shrivastava ◽  
Lulkaran Chohale
Keyword(s):  
United States ◽  
Income Tax ◽  
The United States ◽  
The State ◽  
New Employee ◽  
Federal Income Tax ◽  
The Government ◽  
A Company

Every organization has need to pay salary to their employees, this work is done every month. Each and every organization has to maintain the record monthly for future use. Now a day as we know the countries goes become digit so this work is also performed digitally. This project E RETURN TOOL involves everything regarding to employee payment and related to salary tax. This also includes delivering of taxes to the government and also keep track of employee payments. This tool will facilitate to the employers to pre-validate the ECR and also carry out amendments in the ECR file before uploading on Unified Portal. The return tool has member wise details of wages and the contributions including basic details for the new and existing members’ return Tools also maintain the record of EPF member. Employer can check monthly or yearly details of every EPF member. When a company hires its first employee it started its e return tool. In the United States, every new employee must be reported to the state along with a completed W-4 tax form. The W-4 determines how many allowances the employee qualifies for when calculating the federal income tax that should be withheld from each check. Generally, the employee has to pay income tax depending upon their dependents.

scholarly journals Treasury I and the Tax Reform Act of 1986: The Economics and Politics of Tax Reform

1987 ◽  
Vol 1 (1) ◽  
pp. 37-58 ◽  
Author(s):  
Charles E McLure ◽  
George R Zodrow
Keyword(s):  
United States ◽  
Income Tax ◽  
Tax Reform ◽  
Value Added ◽  
The United States ◽  
Legislative Process ◽  
Value Added Tax ◽  
Tax System ◽  
State Of The Union ◽  
Economics And Politics

During President Reagan's State of the Union Address in January 1984, he requested that Treasury Secretary Donald Regan prepare “a plan for action to simplify the entire tax code so that all taxpayers, big and small, are treated more fairly.” In response, the Department of the Treasury spent ten months preparing a report to the President that has come to be called Treasury I. This three-volume study explained the need for tax reform and the general directions such reform should take, provided a comprehensive set of proposals for reform of the income tax, and analyzed the feasibility and desirability of an American value-added tax. Following almost two years of public debate, the Tax Reform Act of 1986 became law on October 22, 1986. Though widely hailed as the most far-reaching reform of the nation's tax system since the 1940s, the 1986 Act falls far short of the promise of Treasury I. It is useful to devote attention to Treasury I, even though much of it failed to survive the legislative process. First, because Treasury I represented an attempt to formulate a workable tax system that closely approximates the economist's view of an ideal income tax, it is likely to condition future deliberations on tax reform both in the United States and in other countries. Second, the conceptually coherent proposals of Treasury I provide a standard against which to measure the hodge-podge of proposals that became law in the 1986 Act. Finally, a discussion of the decisions underlying Treasury I should prove informative to economists and political scientists interested in the process and substance of tax reform.

GST - Sway On Small Scale Industries

2019 ◽  
Vol 118 (10) ◽  
pp. 365-372
Author(s):  
Jayanti.G ◽  
Dr. V.Selvam
Keyword(s):  
State Government ◽  
Tax Reform ◽  
Small Scale ◽  
Tax Revenue ◽  
Tax System ◽  
Goods And Services ◽  
Single Tax ◽  
The People ◽  
Indirect Taxes ◽  
The Government

India being a democratic and republic country, has witnessed the biggest indirect tax reform after much exploration, GST bill roll out on 1 April 2017.  The concept of this reform is for a unified country-wide tax reform system.  Enterprises particularly SMEs are caught in a state of instability.  Several taxes such s excise, service tax etc., have been subsumed with a single tax structure. it is the responsibilities of both centre and state government to shoulder the important responsibility to cater the needs of the people and the nation as a whole.  The main basis of income to the government is through levy of taxes.  To meet the so called socio-economic needs and economic growth, taxes are considered as a main source of revenue for the government.  As per Wikipedia “A tax is a mandatory financial charge or some other type of levy imposed upon tax payer by the government in order to fund various public expenditure”   it is said that tax payment is mandatory, failure to pay such taxes will be punishable under the law.   The Indian tax system is classified as direct and indirect tax.   The indirect taxes are levied on purchase, sale, and manufacture of goods and provision of service.  The indirect tax on goods and services increases its price, this can lead to inflationary trend.  Contribution of indirect taxes to total tax revenue is more than 50% in India, therefore, indirect tax is considered as a major source of tax revenue for the government, which in turn is one of source for GDP growth.  Though indirect tax is a major source of revenue, it had lot of hassles.  To overcome the major issues of indirect tax system the government of India subsumed most of the indirect tax which in turn gave birth to the concept called Goods and Service Tax.

scholarly journals Is This Tax Reform, or Just Confusion?

2018 ◽  
Vol 32 (4) ◽  
pp. 73-96 ◽  
Author(s):  
Joel Slemrod
Keyword(s):  
United States ◽  
Tax Reform ◽  
The United States ◽  
The Political ◽  
Political Will ◽  
Tax Base ◽  
Tax System ◽  
The Law ◽  
Jobs Act ◽  
Tax Cuts

Based on the experience of recent decades, the United States apparently musters the political will to change its tax system comprehensively about every 30 years, so it seems especially important to get it right when the chance arises. Based on the strong public statements of economists opposing and supporting the Tax Cuts and Jobs Act of 2017, a causal observer might wonder whether this law was tax reform or mere confusion. In this paper, I address that question and, more importantly, offer an assessment of the Tax Cuts and Jobs Act. The law is clearly not “tax reform” as economists usually use that term: that is, it does not seek to broaden the tax base and reduce marginal rates in a roughly revenue-neutral manner. However, the law is not just a muddle. It seeks to address some widely acknowledged issues with corporate taxation, and takes some steps toward broadening the tax base, in part by reducing the incentive to itemize deductions.

scholarly journals The Double Irish and Dutch Sandwich tax strategies: Could a general anti-avoidance rule counteract the problems caused by the utilisation of these structures?

2021 ◽  
Author(s):  
◽  
Danielle Thorne
Keyword(s):  
United States ◽  
Income Tax ◽  
Multinational Enterprises ◽  
Current System ◽  
The United States ◽  
Tax System ◽  
Tax Havens ◽  
Intangible Resources ◽  
And Control ◽  
Tax Structures

<p>This paper analyses the Double Irish and Dutch Sandwich tax structures used by large multinational enterprises. These structures enable companies to shift significant profits to offshore tax havens through the use of wholly owned subsidiaries in Ireland and the Netherlands. Application of the New Zealand General Anti-Avoidance rule in s BG 1 of the Income Tax Act 2007 reveals that any attempt to counteract these structures would be highly fact dependent. The paper concludes that it would be possible to apply the rule, but that there would be practical difficulties in relation to enforceability of the Commissioner’s ruling. A similar result was reached when applying the United States General Anti-Avoidance rule. The attempted application of the General Anti-Avoidance rules reveals a fundamental flaw in the income tax system. That is, the inability of the current system to regulate and control intangible resources and technology based transactions.</p>

Federal Revenue Legislation, 1943–1944

1944 ◽  
Vol 38 (2) ◽  
pp. 325-330
Author(s):  
Roy G. Blakey ◽  
Gladys C. Blakey
Keyword(s):  
United States ◽  
Income Tax ◽  
Democratic Party ◽  
The United States ◽  
Fiscal Year ◽  
Tax Revenue ◽  
Public Discussion ◽  
Tax Revenues ◽  
Federal Revenue

The Revenue Act of 1943 will be remembered not only as the first one in history to be vetoed by the President, but also as the cause of an outburst in Congress against the executive capable of affecting the fortunes of the Democratic party in the 1944 elections. The significance of this last act in the drama (to date) may be clarified if we review the fiscal situation of the United States at the time, the Administration's tax proposals, and the revenue legislation actually resulting.In January, 1943, the President's budget message estimated expenditures of $100 billion for the fiscal year ending June 30, 1944. Tax revenues for the same period were estimated at $35 billion. The President made three recommendations: (1) raise $16 billion in new tax revenue, or savings, or both, (2) simplify the income tax, and (3) put taxes on a pay-as-you-go basis. In the summer and fall of 1943, Congress enacted legislation to carry out certain parts of the last two proposals. Public discussion had forced on it some consideration of collecting taxes currently.

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