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

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.

Assessing The Impacts of TRAIN Law on Consumption, Savings, and Unemployment in the Philippines

The Tax Reform for Acceleration and Inclusion (TRAIN) policy intends to make the tax system simpler, fairer, and more efficient while also encouraging investments, job creation, and poverty reduction. This tax reform package 1 lowers personal income taxes, removes VAT exemptions, and changes the excise tax on petroleum goods and automobiles, making the tax system more equitable while simultaneously rectifying injustice. This study determines the relationship between the TRAIN Law and the increase in income on the country's consumption, savings, and unemployment rate. Using the multiple regression analysis, this study proves that TRAIN Law and the additional income positively affect consumption. The savings also has a significant positive relationship with the increase in income; however, it has a significant negative relationship with TRAIN Law. This study also shows that while the unemployment rate in the country decreases when income rises, the TRAIN law, on the other hand, relates to the increase in the unemployment rate. The results of this research suggest that the said tax reform has had a considerable beneficial impact on consumption, it has had an adverse influence on the growth rate of savings and unemployment in the country, hence in order to improve the delivery of essential services and better future social and economic results, the government should consider modifying the TRAIN Law and introducing a tax or policy that would stimulate private savings and employment.

Analysis Of Factors Affecting Individual Taxpayers In Fulfilling The Obligation To Pay Taxes

The purpose of this study was to determine the variables that influence the willingness to pay taxes, namely awareness of paying taxes, knowledge and understanding of tax regulations, good perceptions of the tax system, and quality of service to taxpayers. The method used in this research is convenience sampling method. The conclusion in this study is that the variable awareness of paying taxes, knowledge and understanding of tax regulations, a good perception of the tax system, and the quality of service to taxpayers have a positive and significant influence on willingness to pay taxes at KPP Pratama Medan Belawan. taxes, knowledge and understanding of tax regulations, a good perception of the tax system, and the quality of service to taxpayers by 40.9% and the remaining 59.1% is influenced by other factors not examined in this study.

Government Challenges Over Global Electronic Commerce Using FinTech

The challenge over most countries has been legislating related acts and regulations on global electronic commerce taxation, but they have not implemented the consumption tax system for global electronic commerce so far. Consumer payment tax (CPT) is based on fintech and thereby proposed so that consumers can pay the consumption taxes to related taxation office of the countries in accordance with consumer country's jurisdiction principle, considering the CPT is assessed to satisfy most of the electronic commerce taxation criteria and has the potential to be applied to electronic commerce.

Employment Structure and the Rise of the Modern Tax System

This paper builds a new microdatabase that covers 100 countries at all income levels and long-run time series in the United States (1870–2010) and Mexico ( 1960–2010) to document how the modern tax system arises over development. I establish a new set of stylized facts, which show that the income tax exemption threshold decreases in the income distribution as a country develops, tracking growth in the employee share of employment that occurs gradually further down the income distribution. Additional evidence supports the interpretation that the rise in third-party covered income through increases in employee share drives expansions of the income tax base over development. (JEL D31, H23, H24, H71, J22, J23, N40)

Automation of VAT System

The automated tax system has been taken as an effective tool for modernizing the tax system. The automated tax system can easily store all types of reported income, and it makes the tax submission procedure easy and convenient, resulting in reducing the compliance cost. The main objective of this chapter is to explain the necessity of an automated value added tax (VAT) system for raising domestic resource mobilization and how automation can be a better alternative to finance sustainable development goals projects. The secondary data was collected from the National Board of Revenue, Bangladesh. This study explains that the entire VAT system's automation can reduce the taxpayers' incentive to evade tax by reducing the tax compliance and taking bribes of tax officials. In sum, automation of the tax system would ultimately be pragmatic tax reform for the financing in the SDG projects.