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It’s Time the US Abolished the Income Tax

Bring on the consumption tax..

• By John H. Cochrane
• February 12, 2024
• CBR - Fiscal Policy
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In December, the US Supreme Court began hearing oral arguments in Moore v. United States. The case specifically involves the “mandatory repatriation tax,” a one-time tax levied as part of the 2017 Tax Cuts and Jobs Act. But the implications are larger, as it is testing the legal waters of whether a wealth tax is constitutional.

This issue has, naturally, been contorted into legalisms: What the heck does apportionment mean in the 16th Amendment? How is income defined legally? I won’t wade into that. What are the economic issues? What’s the right thing to do here, leaving aside the legal minutiae?

The right thing is to stop taxing income altogether. The income tax itself is inefficient, and it leads to mountains of additional inefficiencies.

Why we tax income

The most important principle underlying taxation is simple and doesn’t involve fancy economics: the government taxes what it can get its hands on. The economists’ analysis of incentives—whereby the government tries to tax in such a way that it does not set off a rush to avoidance, either legal (using complex structures to avoid taxes) or economic (not doing the thing that gets taxed, such as earning income)—comes later. Economists should focus on incentives; our opinion of what’s “fair” is no better than anyone else’s.

With that in mind, why does the government tax income? Because, circa 1913 (the year the 16th Amendment was ratified, giving Congress the right to levy an income tax), income was easier to measure than sales, value added, consumption, or other economically better concepts. When money changes hands, it’s relatively easy for the government to see what’s there and take a share. Tariffs really start from the same concept. It’s not that hard to see what’s going through the port and demand a share—Adam Smith, David Ricardo, and free trade be damned. But the federal government wanted more money than tariffs could provide.

Even if it were a good economic idea to tax wealth, there is not necessarily any cash around where there is wealth or unrealized capital gains. When you sell an asset, you get some cash, and it’s easy for the government to demand it. When you do not sell an asset, you have no extra cash. It’s a paper profit. What are you going to pay the government with?

This problem pervades estate taxes. We have a 40 percent top marginal rate wealth tax right now. (Technically it is a “transfer” tax, which is why it is legal.) But private businesses, family farms, and the like don’t have 40 percent of their value sitting around in cash. Unless you carve out a Swiss cheese of loopholes and enable complex legal structures, heirs to such enterprises have to break them up or sell them to get the cash. That’s why the estate tax has the Swiss cheese.

A similar issue has come up in the news lately with some executives at internet companies who got big stock grants at the top of the market. If the market crashes, they still owe tax on the value of the stock when it was granted, but no cash.

Property taxes can share the problem as well. (They are state and local, not federal, hence legal). People can own a house but not have the money to pay the property tax.

Wealth and unrealized capital gains are also troublesome to tax because in many cases it’s hard to know exactly how much money is there. Just what is the value of a house, a building, or a privately held business? Accountants can disagree, especially if taxes are at stake. Accountants also can get creative about corporate structure to game valuation rules—voting versus nonvoting shares, debt with embedded options, options to buy that are never exercised, interlocking trusts, and so forth. See the aforementioned estate tax Swiss cheese.

Moreover, market values change. If I pay tax on unrealized appreciation this year, do I get my money back when the value goes down next year?

You can see how the current system makes sense: if we want to include “investment income” as “income,” tax it when the assets have a definite value—the market sale price—and tax it when there is some cash around to grab—when the income is realized.

I hope that the Supreme Court does blow up the income tax system. It’s a bloated crony-capitalist mess. 

A century of cat and mouse

The income tax has led to a century of cat and mouse. Suppose we tax direct income and realized capital gains. Well, it’s reasonably easy to turn actual income into an unrealized gain. Suppose you have some income stream, and you don’t plan to spend it right away. You want to reinvest it. Rather than pay income tax on the income, and then additional income tax on the interest or dividends over time, and then more income tax on any appreciation when you finally sell it, create a corporation or other entity and let the income flow into the corporation, which reinvests it. The “corporation” could just be a shell to receive income and put it in a mutual fund. Yes, you’ll still pay capital gains tax when you sell, but that’s a lot less. And delaying taxation is always great.

Now you know why we have a corporate income tax at all. There is no economic point to corporate taxes. Having “corporations pay their fair share” is nonsense. Every cent of corporate income tax revenue comes from higher prices, lower wages, or lower payouts to stock and bondholders. We should tax those people . And if you want redistribution—taxing the “right” people—that’s a lot easier to do when you tax people. But if there is no corporate tax, lots of people will incorporate to avoid income taxes. So we tax corporate income and then your payout.

Thousands of pages of tax law and regulation have followed to plug one hole after another. After 100 years of patchwork, including some taxing of unrealized gains, we’d managed to maintain some degree of balance in the system, a sort of equilibrium of not overdoing it.

But people keep inventing new ideas to shield income from taxes, and the concept of income has grown in complexity along with the global economy. Moore v. United States involves domestic owners of a foreign corporation and the treatment of the income received into that corporation abroad. By itself it’s not a big deal.

But the pro-tax arguments before the court reveal that the government has already stepped over the line to taxing a good deal of unrealized income. And plans to greatly increase wealth taxation are already on their way. Not overdoing it, obeying norms and gentlepersons’ agreements, is going out of style these days. As the Wall Street Journal editorial board argues:

The Ninth Circuit’s opinion opened up a freeway to tax wealth and property. And wouldn’t you know, President Biden’s budget this year includes a 25% tax on the appreciation of assets of Americans with more than $100 million in wealth. . . .

Justice Samuel Alito asked: “What about the appreciation of holdings in securities by millions and millions of Americans, holdings in mutual funds over a period of time without selling the shares in those mutual funds?” Ms. Prelogar replied: “I think if Congress actually enacted a tax like that, and it never has, that we would likely defend it as an income tax.”

Well, it’s also called an estate tax, and it exists already!

There you have it. The Biden Administration believes the Sixteenth Amendment lets Congress tax the unrealized appreciation of assets. As Justice Neil Gorsuch noted, when the Supreme Court opens a door, “Congress tends to walk through it.” The Justices should close the wealth-tax door.

Moore v. United States brings up another uncomfortable question. The couple behind the case invested their money, and then the Internal Revenue Service changed the rules and told them to pay taxes now on decades’ worth of past earnings. Surely if they knew this rule, the couple would have arranged their business differently.

Here there is an awkward truth of taxation. Unexpected, “just this once and we’ll never do it again” wealth taxes are economically efficient. The problem of taxation is disincentives. If you announce a wealth tax in the future, people respond by not accumulating wealth. They go on round-the-world private jet tours instead of investing and building companies. But if you tax existing wealth, and nobody knew it was coming, there is no disincentive.

This is, however, one of the most misused propositions in economics. That “just this once and never again” promise isn’t credible: if the government did it once, why not again? And it feels horribly unfair, doesn’t it, grabbing wealth willy-nilly? Unpredictability is not something responsive, rule-of-law democracies can or should do.

In any case, as with corporate income, taxing investment income also makes no sense. You earn money, pay taxes on it, and invest it. If you choose to consume later rather than now, why pay additional tax on it? One of the main don’t-distort-the-economy propositions is that we should give people the full incentive to save by refraining from taxing investment income.

So why do we tax investment income? Again, because once you tax income, you have to start plugging holes. Many people can shift labor income to investment income. If you run a business, don’t take a salary but pay yourself a dividend. If you’re a consultant, incorporate yourself and call it all business income. In the 1980s, even cab drivers incorporated to get lower tax rates.

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A more meaningful tax

The income tax is the original sin. Taxing income made no sense on an economic basis. The government only did it because it was easy to measure and grab, at least before people started inventing a century’s worth of clever schemes to redefine “income.” It has led inescapably to more sins, such as the corporate tax and the tax on investment income. And now the repatriation tax on accumulated foreign earnings.

What’s the solution? Well, duh. Tax consumption , not income or wealth. Get the rich down at the Porsche dealer. Leave alone any money reinvested in a company that is employing people and producing products. Now we can do it. And we can then throw out the income tax, corporate tax, and estate tax.

Income is really meaningless. You earn a lot of income in your middle years, but little early and late. The year you sell a house, you’re a millionaire, but then you’re back to low income the rest of the time. Yet the US government hands out more and more benefits on the basis of income as if it were an immutable characteristic. It is not. Consumption is a lot more meaningful.

Consumption taxes inspire common objections, but they are easily addressed. One is that the tax rate would have to be very high—in excess of 40 percent to fund current federal, state, and local spending. But if the government spends 40 percent of GDP, taxes have to be 40 percent of GDP. That’s what you’re paying now; we’re just making it more efficient. And a bit more transparent, where voters can decide if this is really what they want. Spreading tax revenues out over numerous different taxes doesn’t make taxation less costly, only more complicated.

Retirees and other long-time savers will complain that they have already been taxed on their income and would now be taxed on the consumption of their savings. But that double taxation is offset by some benefits, such as the absence of the capital gains tax and estate taxes, and the likely market boom if the US were to replace our current tax code with a consumption tax. If the tax is figured into the Consumer Price Index, Social Security will also be adjusted up to account for it. And older people have benefited enormously, at the expense of younger people, from booming house prices, soaring stock prices, and benefit increases. Still, cash heals all wounds. If, on balance, retirees end up being penalized by the implementation of a consumption tax, the government can offset the harm.

A flat consumption tax is not progressive. But it’s easy to make consumption taxes progressive. And not every element of federal policy needs to be separately progressive. If flat taxes pay for immense subsidies, the system as a whole can be as progressive as you like.

Thus, I hope that the Supreme Court does blow up the income tax system. It’s a bloated crony-capitalist mess. Most people suspect that others with clever lawyers are getting away with murder, which is corrosive to democracy. If the friends of the court are right that the tax system will not survive a narrow definition of income, that might be a great thing, not a disaster, as it might force a fundamental reckoning.

We need reform from the ground up. Not every decision taken in 1913 has to last forever. Let the income tax implode, and bring on a consumption tax.

John H. Cochrane is a senior fellow of the Hoover Institution at Stanford University and was previously a professor of finance at Chicago Booth. This essay is adapted from a post on his blog, The Grumpy Economist .

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Rethinking the Ethics of Tax Deductions

More from our inbox:, a welcome move on aid to ukraine, firearms safety on the set, when plastics recycling releases pollutants.

To the Editor:

Re “ Make a Difference This Tax Season ,” by Matthew Desmond (Opinion guest essay, April 14):

Mr. Desmond is, of course, right that tax rates and tax deductions are heavily skewed to favor the very wealthy. One of the solutions he offers, however, asks the somewhat wealthy to imitate the very wealthy: Take your deduction and give to your favorite charities.

That’s how the taxpayers end up subsidizing — through deductible philanthropy — huge bequests to operas, billionaires’ alma maters, vanity art collections and other pet projects.

If people just didn’t take the deductions, as Mr. Desmond also proposes, the savings could help fund main government responsibilities like schools, safety, health care and the like.

Better yet, reform the deductions.

Claude S. Fischer Berkeley, Calif. The writer is a professor of sociology at the University of California, Berkeley.

If I forgo a few thousand dollars in tax deductions to which I am legally entitled, can I tell the government please add this to the low-income housing budget and don’t spend it on the F135 fighter jet engine?

I believe that I should pay higher taxes, and so should everyone as rich as I am, or richer. If they did, I would happily pay my share. Until the tax laws require this, I would rather take the deduction and contribute to the Economic Policy Institute or United for a Fair Economy, two nonprofits that are working for a fair tax system.

John L. Hammond New York The writer is professor emeritus of sociology at Hunter College and Graduate Center, CUNY.

Matthew Desmond questions whether it is ethical for those with high incomes to take advantage of many tax deductions they are legally able to take under the tax code.

It’s unreasonable to suggest that paying one’s taxes in compliance with the tax laws is unethical. He also fails to mention that people with the top 1 percent of income pay approximately 46 percent of federal income taxes — more than people with the lowest 90 percent of income combined.

According to Philanthropy Roundtable , the top 1 percent of earners give approximately a third of all charitable contributions. In addition, individuals with a net worth in the top 1.4 percent give approximately 86 percent of the charitable bequests made upon death.

Michael Sherman Wynnewood, Pa.

Thank you for this thought-provoking opinion piece. I often hear about long-term solutions to address poverty but appreciate the suggestions for what we can do on an individual level now as well as a broader collective response. It’s empowering and a good reminder that there are probably many viable strategies within reach.

April Stevens Quincy, Mass.

I am grateful for Matthew Desmond’s commentary. I would add that we should decline the deduction for charitable donations. These are gifts, not transactions , so spare us the tax write-offs, our names on the building, our names in the symphony program.

We are blessed to be leading comfortable lives in a nation with unconscionable disparities of wealth and opportunity. Giving has its own inherent rewards.

Michael Rooke-Ley San Francisco

I found Matthew Desmond’s opinion piece incredibly refreshing and on the mark. A country that overwhelmingly shovels its wealth to its rich, and especially to its very, very rich, is a morally and opportunistically bankrupt one. I believe it is also a foolish one that ignores the potential joy and community that a more equal country could have.

Together, we would be much better off if we emulated the Nordic nations, taxed the rich as we did in the 1950s (top rate of 91 percent), and enjoyed a society rich in community, fairness and a wide diversity of friendships.

R. Peter Wilcox Portland, Ore.

Re “ Speaker Sets Weekend Vote on Package for Long-Stalled Israel and Ukraine Aid ” (news article, April 18):

After resisting attempts to pass a foreign aid package that would provide vital military assistance to a desperate Ukraine, Speaker Mike Johnson finally appears ready to act, striking a deal that would alienate far-right Republicans while likely gaining support from Democrats to salvage his precarious position as speaker.

For months, Mr. Johnson was shamelessly doing the bidding of former President Donald Trump, who stonewalled House passage of a popular bill that combined President Biden’s plan for border security with a broad aid package for Ukraine, Israel and Taiwan.

The refusal to vote for critically important military assistance in the face of Ukraine’s rapidly deteriorating defensive position has been outrageous and comes from a vocal fringe minority of isolationist House Republicans who have completely politicized foreign policy.

Mr. Johnson seems to have done an about-face, possibly daring to enlist the help of Democrats to support his speakership along with their vote to pass the aid package.

In a dysfunctional Congress, it’s pathetic that such a deal is a novel idea, but it would be a long-delayed and welcome fresh start.

Roger Hirschberg South Burlington, Vt.

Re “ ‘Rust’ Armorer Is Sentenced to 18 Months for Involuntary Manslaughter ” (news article, April 17):

In the future, it would be prudent if the employment of set armorers is limited to retired law enforcement or military firearms instructors or shooting range control officers. These people have lived and breathed every aspect of firearms safety for many years and have the experience to ensure that tragedies like this do not happen again.

Lloyd Westerman New York

“ Recycling of Plastic Falls Short of Promise ” (news article, April 6) captures well the petrochemical industry’s failure to deliver any real solutions to the plastics crisis it has created.

Most “advanced recycling” methods are hardly new, but rather they use an incineration technology that has been around for decades. Petrochemical companies are greenwashing the process as “recycling” or “manufacturing” in an effort to exempt it from solid waste incineration rules under the Clean Air Act.

These facilities release dioxins, PFAS, flame retardants, benzene, formaldehyde, particulate matter and heavy metals. They also generate pyrolysis oil, a material so toxic that boat fuels made from it could cause cancer in every person exposed over a lifetime, according to a risk assessment by E.P.A. scientists .

The PureCycle “advanced recycling” facility in Ohio uses a different but equally problematic solvent-based process. As you describe, PureCycle has been riddled with technical and economic failures.

“Advanced recycling” is the centerpiece of an untenable campaign to make plastic waste disappear from sight — by turning it into air pollution — while the industry proceeds to triple or even quadruple production.

Cynthia Palmer Arlington, Va. The writer is a senior analyst for petrochemicals at Moms Clean Air Force.

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Essays on Income Taxation

My dissertation examines empirically how the tax code influences household deductions, how the availability of deductions alters the elasticity of taxable income (ETI), and how deductions change deductible commodities’ prices. I develop theoretical results linked with my estimates and draw conclusions about base-broadening reform design. The first chapter, “Substitutability among Federal Income Tax Deductions: Implications for Optimal Tax Policy”, studies households making joint decisions about two tax-deductible activities: charitable giving and paying interest on home equity lines of credit (HELOC). By allowing for interactions, either substitutability or complementarity, between deductions, I provide a fuller understanding of the elasticity of taxable income (ETI) and the tax-price elasticity of charitable giving. The tax-price of paying HELOC interest depends on the tax schedule as well as current interest rates. Therefore, the two activities have different tax-prices and the identification of their interaction is possible. Using the Survey of Consumer Finances, I find that the level of each activity falls with its own tax-price and rises with the other activity’s tax-price. I show that in theory the ETI is a weighted sum of such own and cross tax-price effects between activities. I then apply this theory and my estimates to illustrate the trade-offs of three base-broadening tax policies. A conventional policy which removes a subset of deductions while keeping other deductions intact cannot guarantee either more tax revenue or greater efficiency. In contrast, an optimal policy would lower all deductions by differing degrees. However, designing an optimal policy requires knowing the values of all own and cross tax-price elasticities between deductions. Instead, I recommend a second-best policy of “uniform partial deductibility” which lowers all deductions to the same degree; it can guarantee improvement without prior knowledge about elasticities between deductions. In the second chapter, “The Impact of Taxation on Charitable Giving by Itemizers and Non-Itemizers”, co-authored with Leora Friedberg, we estimate how the income tax code affects charitable giving by exploiting variation in the federal tax schedule arising between 1988 and 2006. We make two contributions to the literature. We use the Survey of Consumer Finances (SCF) for our analysis. The SCF reports donations for both itemizers and non-itemizers, which is important because non-itemizers do not appear in tax return data. Besides, the SCF has detailed information on individual correlates of giving and covers a long time period. Second, we estimate how giving responds to marginal tax rates not only for “exogenous itemizers”, who have high enough non-charity deductions to itemize, and who have been well studied in the literature, but also for “exogenous non-itemizers,” who face a non-convex budget constraint in their price of giving. We characterize the incentives of non-itemizers based on the tax-price they will face if they give enough to itemize, as well as the “distance” in giving required for them to reach this itemization threshold. Our results show that (1) exogenous itemizers are responsive to tax incentives, with an estimated price elasticity of around -1 for the full sample (which is similar to representative studies in the literature) and more than double for the self-employed; (2) “exogenous non-itemizers” also respond to tax incentives involving both the price and distance associated with itemizing, with sensitivity to the tax price diminishing as distance increases. The third chapter, “Do mortgage borrowers gain the full benefit of the mortgage interest deduction?”, estimates the incidence of the mortgage interest deduction. This chapter studies whether the mortgage interest deduction benefits lenders by raising mortgage interest rates and, if so, by how much. I link the Fannie Mae Single Family Loan Level dataset and Freddie Mac Single Family Loan Level dataset with the Home Mortgage Disclosure dataset. Under both of my empirical approaches I find that rising tax rates raise mortgage interest rates, and translate these results into the incidence results that lenders capture between 3.2% and 9.3% of the benefit of the mortgage interest deduction.

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7 facts about Americans and taxes

Spring reliably brings a whirlwind of number-crunching and form-filing as Americans finish their tax returns. Altogether, the IRS expects to process more than 160 million individual and business tax returns this season.

Ahead of Tax Day on April 15, here are seven facts about Americans and federal taxes, drawn from Pew Research Center surveys and analyses of federal data.

Ahead of Tax Day 2024, Pew Research Center sought to understand Americans’ views of the federal tax system and outline some of its features.

The public opinion data in this analysis comes from Pew Research Center surveys. Links to these surveys, including details about their methodologies, are available in the text.

The external data comes from the U.S. Office of Management and Budget and the IRS Data Book . Data is reported by fiscal year, which for the federal government begins Oct. 1 and ends Sept. 30. For example, fiscal 2024 began Oct. 1, 2023, and ends Sept. 30, 2024.

A majority of Americans feel that corporations and wealthy people don’t pay their fair share in taxes, according to a Center survey from spring 2023 . About six-in-ten U.S. adults say they’re bothered a lot by the feeling that some corporations (61%) and some wealthy people (60%) don’t pay their fair share.

Democrats are far more likely than Republicans to feel this way. Among Democrats and Democratic-leaning independents, about three-quarters say they’re bothered a lot by the feeling that some corporations (77%) and some wealthy people (77%) don’t pay their fair share. Much smaller shares of Republicans and GOP leaners share these views (46% say this about corporations and 43% about the wealthy).

Meanwhile, about two-thirds of Americans (65%) support raising tax rates on large businesses and corporations, and a similar share (61%) support raising tax rates on households with annual incomes over $400,000. Democrats are much more likely than Republicans to say these tax rates should increase.

Just over half of U.S. adults feel they personally pay more than what is fair, considering what they get in return from the federal government, according to the same survey.

This sentiment has grown more widespread in recent years: 56% of Americans now say they pay more than their fair share in taxes, up from 49% in 2021. Roughly a third (34%) say they pay about the right amount, and 8% say they pay less than their fair share.

Republicans are more likely than Democrats to say they pay more than their fair share (63% vs. 50%), though the share of Democrats who feel this way has risen since 2021. (The share among Republicans is statistically unchanged from 2021.)

Many Americans are frustrated by the complexity of the federal tax system, according to the same survey. About half (53%) say its complexity bothers them a lot. Of the aspects of the federal tax system that we asked about, this was the top frustration among Republicans – 59% say it bothers them a lot, compared with 49% of Democrats.

Undeniably, the federal tax code is a massive document, and it has only gotten longer over time. The printed 2022 edition of the Internal Revenue Code clocks in at 4,192 pages, excluding front matter. Income tax law alone accounts for over half of those pages (2,544).

The public is divided in its views of the IRS. In a separate spring 2023 Center survey , 51% of Americans said they have an unfavorable opinion of the government tax agency, while 42% had a favorable view of the IRS. Still, of the 16 federal agencies and departments we asked about, the IRS was among the least popular on the list.

Views of the IRS differ greatly by party:

• Among Republicans, 29% have a favorable view and 64% have an unfavorable view.
• Among Democrats, it’s 53% favorable and 40% unfavorable.

On balance, Democrats offer much more positive opinions than Republicans when it comes to most of the federal agencies we asked about. Even so, the IRS ranks near the bottom of their list.

Individual income taxes are by far the government’s largest single source of revenue, according to estimates from the Office of Management and Budget (OMB).

The federal government expects to collect about $2.5 trillion in individual income taxes in fiscal year 2024. That accounts for nearly half (49%) of its total estimated receipts for the year. The next largest chunk comes from Social Security taxes (including those for disability and retirement programs), which are projected to pull in $1.2 trillion this fiscal year (24%).

By comparison, corporate income taxes are estimated to bring in $612.8 billion, or 12% of this fiscal year’s federal receipts. And excise taxes – which include things like transportation trust fund revenue and taxes on alcohol, tobacco and crude oil – are expected to come to $99.7 billion, or 2% of receipts.

American tax dollars mostly go to social services. Human services – including education, health, Social Security, Medicare, income security and veterans benefits – together will account for 66% ($4.6 trillion) of federal government spending in fiscal 2024, according to OMB estimates.

An estimated 13% ($907.7 billion) will go toward defense spending. Another 13% ($888.6 billion) will repay net interest on government debt, and 10% ($726.9 billion) will fund all other functions, including energy, transportation, agriculture and more.

Related: 6 facts about Americans’ views of government spending and the deficit

The vast majority of Americans e-file their taxes, according to IRS data . In fiscal 2022, 150.6 million individual federal income tax returns were filed electronically, accounting for 94% of all individual filings that year.

Unsurprisingly, e-filing has become more popular since the turn of the century. Fiscal 2000, the earliest year for which comparable data is available, saw 35.4 million individual income tax returns filed electronically (including those filed over the phone). These accounted for just 28% of individual filings that year.

By fiscal 2005, more than half of individual income tax returns (52%) were filed electronically.

Note: This is an update combining information from two posts originally published in 2014 and 2015.

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• Income & Wages

Anna Jackson is an editorial assistant at Pew Research Center

Americans’ Top Policy Priority for 2024: Strengthening the Economy

Congress has long struggled to pass spending bills on time, what the data says about food stamps in the u.s., inflation, health costs, partisan cooperation among the nation’s top problems, economic ratings are poor – and getting worse – in most countries surveyed, most popular.

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267 Interesting Tax Topics to Write about & Examples

Welcome to our list of the most interesting tax topics! Here, you will find trending corporate tax research paper topics, taxes essay ideas, and bonus examples. Check them out!

🔝 Top 10 Tax Topics to Write about in 2024

🏆 best taxes topic ideas & essay examples, 👍 good essay topics on taxes, 📌 simple & easy taxes essay titles, 💡 interesting topics to write about taxes, 🔎 most interesting taxes topics to write about, ❓ tax research question, 🔥 trending tax research topics.

• The Basics of Income Tax: Brackets and Deductions
• The Impact of Tax Policies on Business and Investment
• Sales Tax vs. Value-Added Tax
• Property Taxes: Pros and Cons
• Legal and Ethical Dimensions of Tax Evasion
• Challenges and Opportunities of International Taxation
• How Tax Incentives Promote Social Objectives
• The History of Taxation
• Equity and Efficiency in Taxation
• Tax Reform Proposals and Their Implications
• The Benefits of Lowering Taxes There will be prosperity in the country and the same will motivate the people to work very hard, this will again work in the benefit of the economy. This will make a nation prosper and […]
• Property Taxes for Owners of Habitat for Humanity Houses The second argument for establishing a tax break for the owners of the Habitat for Humanity houses is the patent unfairness of the current system of determining the tax rate for this category of property […]
• The Debate About Tax Cuts Therefore, understanding the pros and cons of the tax-cut arguments shows that state and local taxes have a small burden on the businesses and are unlikely to affect their operating costs.
• Carbon Taxes in Environmental Protection In addition, application of the strategy extends to the use of fuels and the amount of carbon emitted in the process of production.
• The Border Security Tax and Violation of the U.S. Constitution One of them is known as “taxation without representation,” and its applicability to the case is conditional upon the attempts of the president to make Mexico pay for the prospective wall construction.
• The US Tax Planning Strategy and Reporting Standards The move will require the government to analyze tax implications and determine whether making the tax approach conforms to the method allowed by the standards.
• The Pink Tax Issue: Economic Discrimination Against Women Opponents of the Pink Tax argue that it denies women of agency and choice by implying that women are susceptible to a marketing strategy that prevents them from selecting cheaper products.
• Pros and Cons of Regressive Tax Policy in Texas Hence, the Texas case becomes exceptionally peculiar in the context of taxation, as it appears to be a part of a broader discussion.
• Tax Lien as a Car Purchasing Hindrance In case one is buying a house or a car and the tax lien is a hindrance to the purchasing process the Taxpayer Advocate service should be contacted for immediate action to be taken towards […]
• Tax, Lease and Gross Income Problem If this were the case, it would be subject to the gross income requirements of Section 109 or the taxable amount corresponding to the amount obtained through the sale.
• Should Tax Laws Be Reformed to Encourage Saving? Because of the lack of honesty by taxpayers, there is always a shortfall of about 300 billion dollars compared with the amount of tax owed to the federal government.
• Environmental Management: Green Taxes The most common environmental tax is connected with the task of ensuring that these polluters are fined appropriately for their harmful emissions to the atmosphere.
• Legal Marijuana Market Analysis and Taxes Impact Consequently, the primary goal of this paper is to understand the impact of taxes on the financial stability of the market for legal marijuana with the help of the law of supply and demand and […]
• Business and Economics: The Income Tax Citizens started to shift their opinions about the president’s strength and what the national government should do as the presidency changed during the Progressive Era. Between 1901 and 1921, Roosevelt, Taft, and Wilson served as […]
• Addressing Tax Challenges by Introducing a Reform A major obstacle to the growth of the economy and the sharing of revenues is tax avoidance or evasion by big businesses.
• Tax Exemption of Churches From Tax Payments It is unfair for the government to exempt religious groups from paying taxes because this marginalizes some other groups, including LGBTQ and atheists.
• “Windfall Taxes on Energy Are All the Rage They Shouldn’t Be” by Mintz As such, the editors expound that the Russian invasion of Ukraine has led to governments from Europe to the United States grappling with energy alternatives due to its scarcity.
• Aspects of Tax Research Problem According to the Internal Revenue Commissioner’s decision, the installments made throughout the years to the Kellogg Company, deductions from regular earnings, and basic expenses did not happen.
• Poor Segments of Population: Tax Cuts Effects In this context, the reduction of after-tax incomes of low-income families tends to be much more profound, which contributes to the disparities in income and overall wealth inequality.
• Autoethnography: “Black” Taxes in South Africa My brief analysis of the academic literature reveals the significance of the black tax problem, the consequence of which is the compulsion to work harder and a marked decline in the quality of life for […]
• Blockchain and Alteryx Technologies for Tax Administration Alteryx can be considered a comprehensive platform because it is neutral in its data outputs and covers most aspects of the analytics process.
• The Tax Transformation Technology Roadmap The use of outdated programs and tools can lead to several problems related to both the effectiveness of the work and the processes themselves.
• Corporate Sustainability Worldview and Tax Avoidance This proposal introduces the plan of a research project devoted to the association between a company’s adherence to corporate sustainability reporting and tax avoidance trends. Define and research the concept of corporate sustainability reporting within […]
• Transferring Tax Losses to the Future In addition, due to the availability of an estimated reserve, many people may risk opening a company and then abandoning this business.
• Pros and Cons of Consumption Tax Over Income Tax Unlike the income tax, where the target population is low, focusing on the consumption tax gives the government access to all people, increasing revenues. With the elimination of the income tax system, people are encouraged […]
• Value-Added Tax and Tax Morality: Legal Framework In order for the concept of tax morality to be determined, it is essential to identify the legal framework for the flat tax that consumers pay once they purchase an item.
• The Federal Unemployment Tax Some percent of wages is retained by the employer from the employee’s pay, who then remits the funds to the government on the worker’s behalf.
• The Federal Unemployment Tax Act Rates In conclusion, FUTA rates regulate the unemployment rates by punishing states that fail to keep their economies balanced in times of crisis, yet they are essential for preventing a decline in the job market.
• History of Tax Morality Theory At the beginning of the 1990s, tax morale drew widespread interest and has since become a fundamental problem in the scholarly investigation of tax compliance.
• Global vs. India Tax and Remuneration Policies Some MNCs use a standard compensation rate, while others depend on the market forces of the host country to determine the compensation of the employees.
• The Food Tax in Oklahoma Articles This article is about the food tax in Oklahoma, one of the few states where this measure exists. In the news about the passage of the food tax ban bill, there is a brief interview […]
• Systems of Taxes During the Era of Colonialism As a result, the history of taxes is inextricably linked to the nation’s progress and influence since the colonial period. Individuals in the UAE are not subject to income tax.
• Exports and Excise Taxes as Critical Powers of the U.S. Congress To summarize, it should be recalled that the powers of the U.S. Among these powers, one of the most important is the administration of excise taxes and the country’s import policy.
• Privatization, Public-Private Partnerships, and Tax Policy in San Diego In the end, the San Diego Administration Government took control of the project and has been able to operate it successfully as a component of the open road system in the County.
• The Laffer Curve: Tax Revenue History & Reforms In the practical sense, the Laffer Curve is a simple graph, which is demonstrated below: In the chart, the far left point on the X-axis represents the 0% tax rate which would result in the […]
• Case Study on Tax Crimes: Distributional Implications of Joint Tax Thus, the above action amounted to tax avoidance since the firm failed to pay the full amount of tax to the United States government.
• Biden’s Push to Increase Tax on the Rich From New York Times The major reason for this news is Biden’s will to increase taxes for the rich to fund his plan of reshaping the economy.
• The Child Tax Credit Program’s Analysis According to the creators of this bill and the research conducted, the CTC reflects the ideological idea of providing as many citizens of the country as possible with the same living standards.
• Article Review on Carbon Tax Policy Whereas the article points out the financial implication of the Canadian government policy on climate change, it failed to appreciate the general ethical benefits that the world will gain if Canada commits to climate change […]
• Tax Effect of Salary Dividends & Cash Withdrawal If Bob chooses to structure his venture as a corporation, it is recommended for him to receive salaries up to the IRS’s highest level.
• Business Charitable Contributions for Tax Purposes For instance, the way a tax is imposed for a sole proprietor is different for a partner in a partnership business.
• The Impact of the New Tax Law on Executive Compensation The latter point connects executive compensation and the issue of the new tax law, which affects several aspects of the former.
• Taxes, Public Utilities, and Impact on Households However, despite the direct impact of the levies on the household budgets, taxes are critical in supporting governmental expenditure, including offsetting costs of delivery of public utilities and services, such as road construction and healthcare.
• The Tax Cuts and Jobs Act (TCJA) of 2017 The 2017 tax reform ended up in the first significant changes in the field since the Tax Reform Act of 1986.
• Researching Worldwide Tax Avoidance According to Prosser & Murray, “tax avoidance” is the legitimate use of the taxation system to decrease the amount of tax payable within a regulatory framework.
• The Concept of Interperiod Tax Allocation Under this method, the current income tax of a specific period is considered as the income tax expense of that period.
• Tax Consequences Advice Sue of the Above Transactions The information provided is not sufficient for one to tell if Sue has been receiving rent and if yes, she has been paying her tax.
• Double Tax Convention Between Kenya and the United Kingdom of Great Britain and Northern Ireland 5 Stefan, who is responsible for the daily activities of the company, will receive management fees arising from the operations in Kenya will be taxed in Kenya inline with Article 14 of the agreement that […]
• Tax Research Problem: Mr. Smith Medical Case Study He also incurs maintenance expenses of the pool and other medical expenses, while the existence of the pool increases the value of the home to some extent.
• The Supreme Court’s Internet Sales Tax Decision The added input leads to an increase in products’ prices, making it hard for e-commerce startups to compete with other large-scale retailers and wholesalers.
• The Sale Tax Legislation of Hong Kong This study also explained the provisions of the IRD that relate to the Goods and Services Tax in Hong Kong. Tax administration of a particular country is a significant concern as the issue of development […]
• Estate and Ownership Transfer Tax Policy and Regulations in Connecticut Fairfield Therefore, estate owners should considerably reduce their property taxes according to the tax laws to ensure that those who inherit the estates remain comfortable in the future.
• Specific Tax Measures to Digitalized Economy The formation of the digital economy determines the need for appropriate development and improvement of the processes and mechanisms of state regulation.
• Analysis of Federal Tax Policy According to Page, “Implications of Federal tax policies of significance to farmers are particularly notable in tax burdens, land prices and the ownership of capital assets, the cost of capital relative to labor, the size […]
• Taxation: CPA Tax Software The implementations of the income tax law require the political and legal willpower of those who are in the leadership positions.
• Tax Return Process Analysis Form 1040 is the form of the US Individual Income Tax Return. The next section of form 1040 gives the amount of tax and credits.
• Taxation Law: UK Inheritance Tax For example, in the UK inheritance tax is a tax levied on the assets of the dead and therefore estate tax and inheritance tax are more of the same.
• Tax Research: Ed and Whitney case The taxability of the elemental document that was discovered by use of CCH remedies will be dependent on manifold concerns, encompassing: whether there is a taxable income that is associated with this document and if […]
• Accounting: The Payment of Taxes The payment of taxes for both Rigas and Adelphia with one Adelphia check and the outrageous spending of the company could also be used as a recommendation for the discovery of the case.
• Working Income Tax Benefit in Canada Several measures have been enacted to address the issues of income inequality in the tax system, including the changes in the treatment of capital income, changes in unemployment and the structure of the labor market, […]
• Property Taxes Herb Construction Company This is because the taxes of the property are directly due to the development of the property. Therefore, Herb Construction Company should capitalize interest and property taxes of the hotel under construction.
• Tax Consequences: Result of Selling The tax implication on the shares that Amy intents to dispose depends on two issues: First, whether Amy sells her shares to Beth and Meg or to either Beth or Meg, and secondly, whether she […]
• Deferred Tax Assets and Liabilities This paper seeks to examine whether deferred tax assets and deferred tax liabilities satisfy the definition and recognition criteria for assets and liabilities according to the AASB framework for the preparation and presentation of Financial […]
• Bylaw No. 8370: Downtown Revitalization Tax Exemption The council of the City of Prince George is charged with the mandate of providing a variety of services to residents and inhabitants of the area.
• Australian Income Tax Law Reform on Education Expenses Under the prevailing Australian federal income tax law, stipulated in the provisions of the income tax law, section 8A of the Income Tax Assessment Tax 1936 refutes deductions exceeding $250 of expenses incurred on self-education.
• Progressive Consumption Tax A consumption tax is a duty on goods and services spent by a household. Third, consumption taxes have a wider base, easier to implement as all consumption levels are taxed and it is considered a […]
• Taxation: Income and Corporation Tax in UK In 2006 for example, the percentage of the national income absorbed by tax in the UK averaged those of the developed countries.
• The Role of Offshore Tax Havens This particular scenario was seen in the aftermath of the 2008 financial crisis wherein despite the bailouts provided by the government there was still a certain degree of hesitance on the part of banks to […]
• New Tax Proposals: Perry Tax Plans Indeed, one of the outstanding attributes of this tax plan is that it attempts to level down all major tax deductions. The good element in this tax plan is that it brings about total change […]
• Factors That Should Take Into Account When Designing a Tax System to Finance Public Expenditure The tax collected is principally used to finance the expenditure of the government, for instance, paying of government officials and provision of essential services to the residents of the country.
• Tax Treatment of Attorney Fees During the pendency of her appeal in the court of law, the Texas County changed the zoning law permitting two residences per acre as against the original law of only one residence per every two […]
• Legal Costs of Acquiring a Capital Asset: Tax Problem Analysis In 2010, she appealed the decision to the Texas County Board of Supervisors challenging the County’s zoning law. Is the attorney fee incurred in the process of challenging the appraisal of the land tax deductible?
• Taxable Events and Complexity of the Tax System Arguments in favor of corporate formations as taxable events: Taxable events refer to financial transactions that are likely to lead to tax consequences.
• Taxation Law: Tax and Fees Paid to the Attorney The tax of the $11,000 fees paid to the attorney by Sarah is a fixed amount hence no deductions will be made on the value.
• China Looks at Introducing Tax on Foreign Currency Transactions Even though the overall outflow of foreign capital slowed down, there is still the danger to the economic wellbeing of the country.
• Tax Eligibility and Disability Payment Another reason is that the injury he suffers occurred during his service in the army as an employee of the state.
• Individual Income Tax & Home Mortgage Interest Deduction To ease the burden of taxation on the citizens, the United States Congress included the deduction for home mortgage interest in the internal revenue code.
• Tax Research Memorandum for Lunar Corporation Further, Mo wants to write off the loans as a bad debt expense on the returns for the personal tax. Mo is a shareholder and an employee of the company.
• Taxpayers’ Reaction to Payment of Tax Thus, taxpayers’ reaction to payment of taxes should focus on tax compliance and tax evasion in order to understand underlying behaviours that influence tax payment and evasion and get insights on such reactions.
• Trade Groups Identifies Medical Device Makers Passing on Federal Tax If higher pricing is illegal in the context of the new taxation policy for all organizations and importers of medical devices, it implies that they need to look for alternative ways of recovering the costs.
• Offshore Tax Structures and Foreign Exchange Regulations In this paper, the researcher seeks to determine the offshore tax structures and foreign exchange regulations that will affect the decision to take the Venezuelan boulevards into the international market.
• American Tax Code Analysis Throughout the article, the authors revolve around the desire to push the conversation forward bearing in mind that it is long overdue. The energy sector is the latest target in the proposed White House budget […]
• Corporate Tax to Grind In an effort to eliminate the negative impacts associated with tax avoidance both to the corporation and the overall economy, the article highlights some of the efforts that countries are making.
• Taxation: The Australian Carbon Tax According to Bourdieu’s school of thought, economic capital is the total sum of material objects that a person possesses. Carbon taxes indicate these costs, and they have the capacity to minimise inequalities from forms of […]
• Financial Operation Within Tax-Exempt Country This means that the test results obtained cannot help to explain the capital structure of companies in tax-exempt countries that still developing.
• Tax Periods and Method. Organization and Summary The main source of income / revenue in this business will be offering of SEO services to website owners. Einstein Web Solutions is committed to provision of SEO services that will raise the online presence […]
• Tax-Deductible Losses in the United States After the end of the civil war, the need for federal revenue declined considerably, and the government officials thought that abolishing the income taxes would be a fair approach to relieve the citizens.
• Worldwide Tax versus Territorial Tax The main distinction between the United States’ tax system and that of most countries is the manner in which the earnings that are made in foreign countries are handled when they are repatriated back to […]
• Researching Tax in the United States The defensible strategy for the client is based on the six steps in the tax research process namely establishment of facts, identification of issues, location of the authority, evaluation of the authority, development of conclusions […]
• Tax Effects of Various Methods of Forming a Corporation The possible methods are the distribution of the assets to the partners who are expected to contribute the assets to the corporation; the method of transferring the assets to the corporation directly; and the method […]
• Individual Income Tax Gains due the cancellation or sale of a life insurance policy before the death of the insured are subject to taxation because the tax exemption on proceeds from life insurance applies upon the death of […]
• Taxation: Tax Compliance The approach is relevant for determining the undisclosed income since it involves assessing the tax accountability by examining the financial performance of a taxpayer from assortment of sources outside the declaration of the taxpayer and […]
• Federal Income Taxation: Tax File Memorandum It is within this layover moment that Mark takes a 4-hour nap in the ferryboat Is the cost of meals Mark purchased while on his usual rounds deductible?
• Australia’s Car Fringe Car Tax Benefits In May 2011, the federal government implemented some changes to the income tax laws and one of the areas that was affected was the car fringe benefit calculations and the take home pay of employees.
• Ethical Standards for Tax Professionals She is entitled for tax deduction if the equipment purchased is for producing income for the business and in this case the equipment has to be capitalized in the year of purchase.
• Australia Corporate Tax on Income The rate on the income for the tax period 2009/2010 is 30%. Replacement value is the price to be paid in future for the stock.
• Canadian Income Tax Return For instance, if an employee uses a motor vehicle for both corporate and private purposes, he/she should distinguish between these issues and count only the kilometers passed on business while the total amount of kilometers […]
• Discriminatory Tax Provisions But the establishment of a uniform tax regime to implement the principle of freedom of movement of goods as one of the four fundamental freedoms for the entire region has not been smooth and the […]
• Stock Share: Tax on Transfer Gain It is important to note that according to the Special Law for the Promotion of Venture Business, the new technology investment company is not considered registered.
• Income Tax Deductions Issues According to Fishman, income tax is the tax levied on the incomes of businesses both corporations and other legal entities and on the income of individual citizens of a country.
• Business Ethics: Tax Scamming Of course, in viewing the problem ethically, small business whose incomes suffer from abusive taxations, as their main goal is to justify the inputs made by investors, to produce the outputs for the customers and […]
• Tax Planning for Low-Income Taxpayers The definition of family in the family trust selection regulations will be changed to restrict lineal successors to children or grandchildren of the test persons or the test someone’s spouse.
• An Existing Obesity Crisis: A Sugar Tax? Tirado agrees that the problem of obesity and, particularly, the issue of excessive sugar consumption, exists but the current measures and methods do not address the root of it.
• COVID-19 Effect on Global Tax Collections The emergence of the digital economy has caused confusion concerning how tech companies should pay their corporate taxes. The Global Tax Project of 2013 seeks to address these issues to avoid a patchwork of national […]
• “Why Do Developing Countries Tax So Little?” by Besley and Persson The present paper offers a response to the article by discussing the major strengths and weaknesses of the arguments provided in the article and describing the implications of the findings.
• Strategies of Tax Avoidance This paper aims to dwell upon several issues, including previously mentioned problems along with the use of the Double Irish and the Dutch Sandwich by Google, Google’s negotiation with the Internal Revenue Service, and Microsoft’s […]
• Zero Personal Income Tax in the US Thus, the primary source of tax income for Saudi Arabia is the taxation of various types of businesses. The authors went on to theorize that the tax system in general and tax rates for both […]
• Opioid Epidemic and Budget Losses in Tax Revenue The authors provide the estimates of the budget losses in tax revenue associated with opioid use disorder. The authors also claim that the investment in the prevention and treatment of substance abuse disorders can mitigate […]
• Snack Tax as an Effective Food Policy This is because the Massachusetts Food Policy Alliance abides in the contents and provisions of the Toronto Food Policy. In conclusion, I strongly believe that effective food policy can impact the abilities of governments to […]
• Border Tax Adjustment and Greenhouse Gas Emissions With regards to this, the short-term effect of the BTAs is that they will create equal competition conditions in the world market, while the long-term one is that the BTAs will contribute to the achievement […]
• Reasons Why Countries Give Credit for Taxes Paid on Foreign Source Income The objective of this paper is to describe foreign tax credit and explain the reasons why countries give a tax credit to non-citizens.
• Tax Money Usage on Military Spending Issue The fact that America won the Cold War and defeated the Soviets is taken as a vindication by the American leaders of the need to continue military spending.
• Obama’s Tax Relief Plan Analysis The following graph outlines the proposed tax cut relief plan in detail and it would be analyzed in terms of the effect that it has had on the economy and it’s bearing on the American […]
• Efficacy of the Taxes Act 2003 This paper critically examines the efficacy of the Taxes Act 2003, passed by former President Bush by cutting personal taxes and depreciation rates, in order to create more incomes and thus increase consumer spending, leading […]
• President Bush’s Tax Cut Policies The impact of the tax cuts on the high-income households, the middle-income households and the low-income households have been assessed. Taylor argues that the tax cut policies of President Bush have minimized the amount of […]
• Accounting for Sales Tax Revenue in Florida State The Florida State Department of Revenue has the responsibility of administering revenue laws of the state to its citizens as well as the laws that are related to the inspection of the books of accounts […]
• Tax Law in Accounting Thus, it is not surprising to see that the higher the income of the individual the higher would be share in taxes. Similarly, difference in net income between financial accounting and tax accounting could be […]
• Approaches of Different Tax Systems The advantage of National sales tax is that it is not a direct tax and accordingly the taxpayers may not feel that as a cut from their income is being made directly.
• Carbon Tax in Norway & Denmark: Economic Analysis In the long term, carbon tax can make the use of alternative energy sources the new norm and set the standard in stone.
• Tax Authority’s Effectiveness and Implications Apply the provisions of tax treaties in a fair and consistent manner; promote the fair sharing of taxing rights in tax treaties and the development of domestic laws; not promote or facilitate tax evasion or […]
• Ecology of Commerce: Green Taxes The Ecology of Commerce is a critical analysis of the way we conduct our business and our society today. This will provide incentives for businesses to produce things in an environmentally sound way, and it […]
• Internal Revenue Service in Tax Administration This is an analytical as well as empirical study with a view to exploring the deficiencies and impediments in the way of effective operation and management of the Internal Revenue Service.
• Lomanno: Tax Law and Court Rulings Report The second fact is that the husband of a petitioner did not have the permission to sign her name to income tax in the years that are discussed and there was also no approval to […]
• The Provision of the Information on Tax Treatments The complexity of this framework might be confusing for people and presuppose some difficulties with the determination of various types of payments that are obliged to do.
• How to Tax the Digitalized Economy As such, the company has to pay fees twice, which results in a significant economic burden, increased prices to compensate for the loss and a general slowing of business growth.
• Property Taxes Concepts Analysis To adjust this indicator, it is necessary to review the market value of the property regularly, which will be the main function of the group of market agents.
• Property Taxes and Assessment System The government should consider not only the current value of the property in the area and state of the evaluated object but also the term of ownership to distribute taxes equitably.
• Sweden’s vs. Ireland’s Tax Policy In this regard, it can be expressed differently, noting that in Sweden, there is no tax on the property of individuals in its classical sense.
• Tax Policies in Sweden and Ireland The tax burden on the economy is more significant in Sweden than in Ireland, and the rules of fiscal laws are more stringent in the Scandinavian country, although its self-regulation is more advanced.
• Microeconomics: Cigarette Taxes and Public Smoking Ban The problem of passive smoking will be minimized when the number of smokers decreases. It is agreeable that the meager incomes of such families will be used to purchase cigarettes.
• The Political Stream: New Tax on Sweetened Beverages We delegate our rights to the government, including the local government of San Francisco, so that they can perform the measures that are beneficial to us.
• Tobin Tax for the United Kingdom and United States The reason is that the commission has put it clear that the financial transaction tax will not only be implemented to financial institutions that are within the FTT region.
• Swobodaville City’s Tax Revenues Most of the tax rates are imposed by either the central government or the local authority. When the income tax rates are set locally, there is a tendency for the authority to offer lower tax […]
• Federal Government’s Tax Spending: Rules and Limits The article called “Federal employees ask taxpayers to buy them personal items” posted on The Washington Examiner news portal by Sarah Westwood discusses the areas of expenditures of the federal employees and the prohibitions concerning […]
• International Tax Havens and Impact on Arizona and World The study will be focusing on examining the impact of international tax havens on Arizona and the world, specifically the international financial market, which in turn has the capacity to affect the agribusiness environment, its […]
• “Tobacco Companies Elude Tax Increase” by Matt Apuzzo In this work, some economic models will be considered in order to understand the intentions of the author of the article “Tobacco Companies Elude Tax Increase” and clear up whether the information presented is reliable […]
• Income Tax Breaks and Housing for the Elderly This policy was formulated in 2002 to cater to the elderly as it had been found that the majority of them suffered from fall-related injuries.
• Corporate Tax Assignment in the UK and the US It is noteworthy that companies-residents of countries that have established income tax treaties with the US are only subjected to taxation “only to the extent the income is attributable to a permanent establishments in the […]
• New Tax Reform of 2017 in the United States The paper consists of two parts: the essence of the reform and its perception by various social and political stakeholders will be summarized, and then the reform will be investigated in the context of the […]
• Deferred Tax Assets and Future Payments Study The author also establishes the significance of the research question, explaining that determining the presence of a strong association between deferred taxes and future tax payments could be used to improve the current financial accounting […]
• The Importance of Tax in Our Life A critical view of the tax reveals that its intention was not to boost health outcomes for the citizens of Cook County, but to help the administration in raising about $1.
• Repealing Soda Tax: Pros and Cons The article titled “Chicago’s Soda Tax is Repealed,” published by The Economist on October 13th, 2017, celebrates the repeal of the infamous soda tax, which received large amounts of criticism from both the soft drink […]
• Republican Tax Rewrite: Helps Some, Hurts Others The purpose of the piece is to explore the consequences of the recent tax rewrite, pushed by the Republicans. An excellent alternative to the government’s actions, in this case, would be to involve the public, […]
• Tax Reform in the United States Furthermore, the adoption of the Consumption Tax as the foundation for the current fiscal system will encourage the residents of the United States to change their buying behavior.
• Corporate Tax Rates and Project Valuation In this paper, the influence of corporate tax rates and the importance of project valuation, cash flows, and risk analysis will be discussed.
• Personal Income Tax: Arguments For and Against In addition, there is a liability to a personal income tax and the responsible tax paying entity must compute, file and pay tax as per the rules of the state.
• US Corporate Taxes Improvement and Alternatives The repatriation process will also increase the total US income; since many companies will relocate, back home and their tax revenues will benefit the country.
• American Estate Tax, Laws and Ways of Minimization The fair market value of the estate is adjusted with the amount of related allowable deductions to obtain the value of the net value of the Estate.
• Value-Added Tax in the United Arab Emirates The discovering of the oil sources transformed the UAE to the economically powerful country; however, the other side of the problem is that oil and gas made the UAE dependent from the sources and can […]
• Drug Legalization: Increased Taxes v Health Issues A brief analysis of the problem shows that legalisation of drugs is an efficient and even necessary measure to address the problem.
• UAE Tax Policy Analysis Put back on the blue hat and make recommendations
• Effects of Taxes and Economic Incentives on Business In spite of the wide array of these elements, analysts argue that taxes play the most critical role in influencing the location choices. In this paper, the author will assess the impacts of taxes and […]
• The “Waist Banned” Article – Taxes on Junk Food On the other hand, the article describes the possibility of a failure in the projected effects of taxation on junk foods because of the likelihood of junk food addicts to forego expenditures of important foods […]
• Taxes on Alcohol and Cigarettes as a Healthcare Costs According to the Senate Committee mandated to oversee the department of finance, the cost of managing diseases related to liquor and cigarettes in the next ten years will be over $1.
• The Strategy of Toyota and H&R Tax Service As such, the key to success as well as prolonged existence in the market calls for the organizations to establish a tradition that ensures the development of modern initiatives, training and the application of new […]
• Tax Shelter and Offshore: Control and Investment From this point, the long-term investment can be discussed as the effective tax shelter method to reduce the taxable income and tax payments.
• Liberty Tax Services Company Analysis This essay describes an interview conducted to establish the reasons why the management of this company decided to ignore all norms and jokingly use phrases that seem to belittle the quality of services offered by […]
• Federal Tax Law: Implications of Replacement The integration of the federal tax rate would improve the government’s capacity to ensure equity in the administration of the tax law. Replacing the federal income tax rate would contribute to considerable promotion in the […]
• Increasing Sin Tax for Increasing Costs of Medical Care Should The United States Federal Government increase “sin taxes” on alcohol and tobacco to help pay for the increasing costs of medical care?
• VAT Versus Flat Tax Versus More Progressive Tax On the other hand, progressive tax is the form of tax where tax rate varies with income. In this case, the VAT tax may reduce the level of aggregate demand in the country.
• Need of Tax Cuts
• University Students Should Not Pay Tax
• Taxes and Education: A Cooperation That Went Awry
• Hollywood Taxes for the Film Industry
• Taxes Effects on Goods and Services
• Property Tax Role in a Developing Country
• Tax Law Sources: Substantial Authority and Courts
• Organizational Change Project “Fat Tax” in Denmark
• Effectiveness of Carbon Tax in Environmental Sustainability
• Tax Equity in Countries Economy
• Best Tax Preparation Office in Tampa, Florida
• Mineral Resource Rent Tax Policy
• Using Taxes to Address Traffic Safety Problems in Oman
• Impacts of the Implementation of Australia’s “Carbon Tax”
• Bush Tax Cuts Debate
• Taxes, Capitalism, and Democracy: Karl Marx vs. Plato
• Tax Cuts in Keynesian Economics
• Income Taxation in Canada
• Putting Out the Fires: Will Higher Taxes Reduce the Onset of Youth Smoking?
• State Management of Taxes and Policies
• Inflation Tax – Printing More Money to Cover the War Expenses
• Australian Taxation: Minerals Resource Rent Tax
• Carbon Tax Advantages and Disadvantages in Australia
• The Mineral Resource Rent Tax in Australia
• Fixing Illinois’ Taxation Mess
• Exempted From Paying Taxes: International Students Who Are Not Working
• Self Managed Super Fund: Superannuation and Tax
• Tax Hikes and the 2011 Economic Collapse
• Fraudulent Accounting and Tax Evasion
• Legal and Illegal Tax Shelters
• Roles of Property Tax
• Effect of tax on Vietnamese hangers
• Economic Effects of Tax Reform
• Tax Evasion in Egypt
• Tax Avoidance Legal and Illegal Ways
• The Evaluation of Tax Reform Strategies in the United States
• The raise of Taxes at the United States
• We Should Use Tax Money to Enforce Mandatory Drug Treatments on Drug
• U.S. Corporate Tax Havens
• The Issue of Huge Taxes
• The Internal Revenue Service Uncovers Tax Fraud with a Data Warehouse
• Government Spending and Tax Legislation Signed by the President
• Welfare Expenditure Reduction: Obama’s Federal Worker “Tax”
• Relationship Between Budget Deficits and Tax Cutting
• Tax efficient financial planning
• Fair Tax and Laffer Curve
• The Significance of Lower Taxes to the average Canadian Citizen
• Budgeting in USA: Property Tax
• How tax cuts help revive the economy
• American Tendency of Rising Taxes
• Australian Goods and Services Tax System
• The Fat Tax Concept
• Are Capital Taxes Racing to the Bottom in the European Union?
• Does Firm Heterogeneity Impact the Effectiveness of Carbon Taxes?
• Why Are Property Taxes Important for Local Communities?
• Can Border Carbon Taxes Fit Into the Global Trade Regime?
• How Do Taxes Affect Interstate Migration?
• Who Benefits Most From Property Assessment Taxes?
• Are Consumption Taxes Preferable to Income Taxes for Preventing Macroeconomic Instability?
• Does Social Trust Increase Willingness to Pay Taxes to Improve Public Healthcare?
• Can Green Taxes Save the Environment?
• How Do Tax Policies Affect Individuals and Businesses?
• Why Doesn’t the US Include Sales Tax in Prices?
• Should Euro Area Countries Cut Taxes on Labor or Capital in Order to Boost Their Growth?
• Are Differentiated Carbon Taxes Inefficient?
• How Do Capital Taxes Harm Economic Growth?
• Can Property Taxes Reduce House Price Volatility?
• Would People Rather Pay Taxes or Trade Taxes to Pay for Environmental Goods?
• Are Environmental Taxes Affected by Legislatures’ Ideological Positions?
• How Do Major Local Taxes Affect Private Employment?
• Can Redistributive State Taxes Reduce Inequality?
• Are Small Business Owners More Successful in Avoiding Taxes?
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IvyPanda. (2024, March 1). 267 Interesting Tax Topics to Write about & Examples. https://ivypanda.com/essays/topic/taxes-essay-topics/

"267 Interesting Tax Topics to Write about & Examples." IvyPanda , 1 Mar. 2024, ivypanda.com/essays/topic/taxes-essay-topics/.

IvyPanda . (2024) '267 Interesting Tax Topics to Write about & Examples'. 1 March.

IvyPanda . 2024. "267 Interesting Tax Topics to Write about & Examples." March 1, 2024. https://ivypanda.com/essays/topic/taxes-essay-topics/.

1. IvyPanda . "267 Interesting Tax Topics to Write about & Examples." March 1, 2024. https://ivypanda.com/essays/topic/taxes-essay-topics/.

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Fiscal Policy - Impact of Tax Rises (Revision Essay Plan)

Last updated 14 Feb 2022

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Here is an exemplar essay plan to a question on the possible macroeconomic impact of a rise in the tax burden.

Macro Impact of Tax Increases on UK Economy

At the Budget in March 2021 the Chancellor announced a phasedrise in UK corporation tax from 19 per cent to 25 per cent, and froze income tax thresholds for five years, raising £17 billion per year and £8 billion per year respectively. The Government has also temporarily increased the rate of National Insurance by 1.25 percentage points, and will introduce a new Health and Social Care Levy from 2024 onwards raising £17 billion per year. These tax rises are forecast to take the UK tax burden to a historically high level. The tax burden is forecast to rise from 33 per cent of GDP recorded before the pandemic in 2019 to 36 per cent of GDP by 2026 – its highest level since the early 1950s.

Government borrowing surged from £57 billion in 2019 to over £300 billion in 2020. At the end of 2021, the National Debt was 96% of GDP. Prior to the pandemic, in November 2019, the debt-to-GDP ratio was 81%.

Evaluate the macroeconomic impacts of an increase in the tax burden on the UK economy. (25 marks)

KAA Point 1

One possible impact of the phased rise in corporation tax from 19% to 25% could be to reduce the level of capital spending by domestic firms and also make the UK economy a less attractive venue for inward FDI. This is because higher corporation tax reduces the post-tax return on investments such as new plant and machinery and factories . Assuming businesses will only go ahead with a project if the expected real return is high enough, a fall in investment would lead to a lower level of aggregate demand (C+I+G+X-M) which in turn will cause weaker economic growth and perhaps also hit productivity since the economy might have a smaller and older capital stock which breaks down more frequently.

Evaluation Point 1

However, many factors influence planned investment spending. These factors include interest rates on corporate loans, the pace of technological change and other tax decisions by the government including the recent super-deduction tax incentive. Under the super-deduction, for every £100,000 a company invests, their taxes are cut by up to £25,000. This has been important for many small businesses. If the economy is still growing and unit labour costs and the exchange rate remain competitive, then a steady rise in corporation tax back towards 25% might have only a limited impact on domestic investment and FDI. For example, corporation tax in Germany is 30 per cent – higher than the UK.

KAA Point 2

A second possible impact of a rise in taxes is a slowdown in consumer spending leading to a rise in unemployment. The extract says that freezing of income tax allowances will raise £8 billion in extra tax and this will then reduce the real disposable income of millions of households which is the main determinant of their spending power. Freezing tax allowances creates something called “fiscal drag” which is a rise in tax as people get wage increases. The jump in national insurance contributions is another direct tax on incomes and it is also paid by employers, which means that many businesses will experience an increase in the costs of employing extra workers. Some may look to control costs by reducing employment and hours for existing workers which will reduce economic growth.

Evaluation Point 2

However, in evaluation, the extract mentions that the pandemic lead to a five-fold in the budget deficit from £57 billion in 2019 to over £300 billion in 2020 and the size of the nationaldebt has expanded by 16% of GDP over the same period. One might argue that a higher tax burden is needed now to helpimprove government finances to ensure that the fiscal deficit has come down before the next recession. A high budget deficit and rising national debt can lead to rising bond yields and higher taxes in the future which could damage prospects for investment and the UK’s international competitiveness.

Final Reasoned Judgement

Overall, the UK government’s decision to raise the tax burden seems to a calculated risk that the economy will be sufficiently strong as the UK emerges from the pandemic and that households and businesses can cope with rising taxes. Some might argue that a rising tax burden is needed now to help pay for growing NHS and social care spending in the post-covid pandemic period. Others believe that there are alternative ways of raising taxes including a windfall tax on the supernormal profits of energy companies and tougher measures to address corporate tax avoidance which is estimated to cost the UK government billions of pounds of lost tax revenue each year.

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Paying Taxes Essay

This is an IELTS  Paying Taxes Essay.  In nearly all countries people have to pay some kind of taxes.

In this essay you have to decide whether you agree or disagree with the opinion that everyone should be able to keep their money rather than paying money to the government. 

Here is the question:

Some people believe that they should be able to keep all the money they earn, and should not have to pay tax to the state.

To what extent do you agree or disagree?

Considering Both Sides

A good answer that looks at all the issues presented in the question would consider the following points:

• Why people may want to keep all the money they earn
• Why people should have to pay money to the state

Those are the two sides, so you should brainstorm some ideas around those two questions/opposing opinions before you start to write.

And of course it is very important to make sure you are very clear what your opinion is .

Now take a look at the paying taxes essay model answer.

You should spend about 40 minutes on this task.

Write about the following topic:

Give reasons for your answer and include any relevant examples from your own experience or knowledge.

Write at least 250 words.

Model Answer

People work hard and earn money which ideally they would like to retain for themselves. However, a significant portion of this usually has to be given to the state. In my view, it is right that people pay their fair share of taxes. 

Money is everything in today’s world. This is because money is used to buy all the necessities such as food, water, and shelter. Money is also used to help a family’s children in the form of school fees and other activities. In addition to this, people do not only need money to cater for their necessities, but also for future investments. The more that people have to invest, the more they believe they can accumulate in the long term. As a result, many are reluctant to lose some of their income through the deduction of tax. 

Nevertheless, citizens should be obliged to pay taxes to the government for a number of reasons. They should accept that the taxes they pay help the government offer them the public services all over the country. These public services are things such as the construction of roads, bridges, public hospitals, parks and other public services. The same tax money helps the country’s economy to be stable. Through taxes, the government can also pay off its debts. In short, money received through taxes is a way of ensuring that people have comfortable livelihoods.

In conclusion, even though many people think that they should not pay taxes, that money is useful to the stability of any country. Therefore, people should not avoid paying taxes as it may affect the country’s economy and services that it provides. 

(272 Words) 

Task Response

• The question is fully addressed so the essay would get a good score for task response.
• The first body paragraph explains the reasons why people may not want to pay tax and the second body paragraph explains why it is important to pay.
• Reasons and examples are given to support the ideas.
• The writer’s opinion is also very clear. It is presented in the thesis statement and repeated in the conclusion. It is explained in body paragraph two.

Coherence and Cohesion

• The paying taxes essay is well organized. Each of the main points is explained in a separate paragraph and a logical argument is presented to support the writer’s opinion.
• Cohesion is also maintained by good uses of linking words to join the ideas and paragraphs.

Lexical Resource

There is some good use of vocabulary and collocations and spelling and word forms are correct.

For example:

• a significant portion of
• necessities
• reluctant to
• deduction of tax
• be obliged to pay
• construction of
• the stability of

Grammatical Range and Accuracy

There is good accuracy in the grammar and a good range of sentence structures. For example:

• People work hard and earn money which ideally they would like to….  
• This is because money is used to buy all the necessities such as…
• people do not only need money to cater for their necessities, but also for future investments.
• In conclusion, even though many people think that they should not pay taxes…

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