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How did trade affect the industrial revolution
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Taxation has evolved throughout history as a method of funding government functions. The US government began taxing its people by imposing tariffs on certain items such as liquor, tobacco, sugar, and legal documents. Currently, there are taxes on almost every function. The IRS regulates income tax laws, central appraisal districts control property tax values, and there is a state sales tax on most purchases across the country. Taxes are difficult, if not impossible, to avoid. Benjamin Franklin stated “'in this world nothing can be said to be certain, except death and taxes” (Isaacson 463). Revenues from property taxes are used to fund public schools, hospitals, and local governments. I will discuss the history of property taxes and compare the Texas property tax rate to the rest of the country. Property taxes are more efficient than income tax and a better way for local governments to collect revenue from taxpayers. The …show more content…
Conversely, property tax collections as a percentage of total tax revenue decreased. After World War II, the economy grew at significant rates along with people’s incomes and total property tax collections. However, property taxes as a percentage of total revenue began to drop. In 1927, property taxes accounted for 97.3% of total local tax revenue; today the total is less than 75% (Carlson). Jurisdictions in all 50 states and the District of Columbia have property taxes. The property taxes provide jurisdictions with a constant revenue stream. The property tax rate is usually calculated as a percentage of the assessed property (usually land and improvements to land) multiplied by a standard tax rate. School districts heavily rely on property taxes as a source of revenue. Once source states that in 2007, independent school districts in the United States received roughly 77 percent of their revenue from property tax collections (Tax Policy
According to the data obtain from the United States Census Bureau; the state of Texas received the amount of $ 24,500,909 in sales tax revenue in the year 2012, Tennessee $6,512,352, and Utah $1,857,055. The sale tax in Texas percentage is “6.25 % to 8.25% depending on the local cities; Tennessee charges “7%, but the number can vary from 1% to 2.75 %”; Utah is “4.70% to 7.95%. Texas population is approximately 26,06 million; Utah 2,855 million, and Tennessee is 6,456 million by 2012; These numbers show that the state of Texas is bigger in size and population than Tennessee and Utah; however the sales taxes revenue is lower han Tennessee, but higher than Utah’s.
Wake County. (n.d.). How your property tax dollar is used. Retrieved from Wakegov.com website: http://www.wakegov.com/NR/rdonlyres/6D11C633-E80E-40FA-BF45-2E21C8B1EDEF/0/Charts2011.pdf
The Texas government is a complex system whose ultimate purpose is to serve its citizens. Oftentimes, its complexity in certain aspects causes problems in its efficiency in serving. The way the Texas Constitution is written, how local governments run, the judicial, legislative, and executive branches’ efficiency, as well as Texas public policy and fiscal policy result in a government that is not set up to best serve its citizens.
The disadvantages of having no state income is that everything around people increases in price. Just because the state does not receive a percent from worker’s earnings, does not mean they do not find other ways to tax them. As a result the state imposes taxes through other ways to receive money. Their is higher property taxes, higher than average expenses, and less state funding. A study by Lincoln Institute of Land Policy says “Effective property tax rates on owner-occupied housing in Texas are the fourth-highest in the United States and about 58 percent above the median rate for all state.”
To reiterate, the current tax system is thought to be regressive because the tax system does not provide a balance for those with high income and those with low; however, this can be fixed by adopting some aspects of a state with progressive features. For instance, the state of California as a much better tax system than Texas because they have a “graduated personal income tax structure and provides personal income tax credits in place of personal and dependent exemptions” (“California”). If Texas adopted these two characteristics into their tax system this will began to progress because some of the faults in the present Texas tax system is the lack of personal income tax structure and it does not not provide tax credits to low-income taxpayers to offset other expenses. Making these few changes will help Texas greatly; however, making this change will be difficult because the state is comfortable with the tax system they have. Texas does not care to alter the tax system much because although it is weak, it does not take too much away from the overall economic success the state
In California, the finance structure of local government gives them more incentives to approve commercial (non-residential) housing development. Cities and counties find fiscal benefits come primarily from the commercial development, such as hotels, restaurants, and retail establishments. The tax revenue received from these establishments could often offset the cost for a local government to provide public services. On the contrary, the affordable housing developments cause more local costs than yielding high tax revenues. Therefore, local governments have the motivation to develop commercial establishments by zoning considerable lands for such purposes. Consequently, many cities and counties have approved their land use planning disproportionately towards commercial
Having a lower tax rate the state can collect a greater amount of tax money and vice versa. California has an income personal tax which is progressive (Janiskee 101). On the contrary, Texas has a “low service, low tax” reputation with regressive tax system. Furthermore, Texas is one of the nine states that still do not have a personal income tax (Champagne, 314). California’s income tax is designed to match inflation rates in order not to push a taxpayer into higher rates (Janiskee 101). The most substansial single tax financing Texas government is sales tax. Today, the sales tax in Texas is 6.25 percent which automatically places Texas in the rank of states with highest sales tax rate. Moreover, city and county are allowed to impose additional 2 percent sales tax (Champagne 317). Likewise, California has 7.5 percent sales tax which considered being a high rate as well as in Texas. In addition to the income and sales tax...
Taxation has always been a major controversy. Just like any major corporation, the government is constantly looking to raise revenue. The easiest and fairest way to do this is by taxing the people. However, how the people will be taxed is always an issue.
Property taxes are a tax that everyone pays every year for all the property owned during that calendar year. The higher value of property owned, the more taxes a person pays. These taxes go to schools, roads, and city or county funds. They also go to fire and police departments in your local area. They assess your property value and charge a percentage of that value. Included in this value is vehicles, mobile homes, houses, land, travel trailers, and boats. Without paying these taxes, a person will not be able to re-license a vehicle when the tags expire or a new vehicle is purchased. As a renter, an individual will not see these extra assessed
After World War II the cost of redevelopment was mostly paid by taxpayers through property taxes. Then as the housing market increased, tax payers became increasingly weary of the growing costs. These costs were attributed to the increasing budgets from municipalities and school districts. Thus, Proposition 13 was enacted by limiting “the basic property tax to 1 percent of the property’s assessed value” (180, Cullingworth). Now, cities can no longer rely solely on tax payers to cover costs. In turn, municipalities have increased charger, and state and federal funding has begun to diminish (180, Cullingworth). The purpose of this paper will be to give four alternative sources of funding for redevelopment at the local level, and to discuss the tax increment financing technique and whether the technique has been abused by the
Taxes are a contribution to the state revenue added to the cost of goods and services. I think of taxes because in New York City people are always spending money throughout the day weather its to eat, find a place to stay, or buying clothes people buy things and when they buy the goods or services they need or want there are taxes being added to the amount. The final economic term I think about when looking at the picture of New York City is utility. Utility is the measure of how a certain kind of goods and services can bring happiness to a person or consumer. New York City
Local taxes impart flexibility to the tax system, as enable local governments to quickly mobilize funds to finance the social needs of a particular
for example in New York the state tax can differ from the minimum of 4% to 8.82%. Now, many
Finally, it is also good to know how tax rates change. Usually, Local governments enforce the changes made by the state governments when they set new limits or increases. This enforcement is the biggest difference between them, but either way, both need the citizens to first pay for the services. Therefore, government funding from taxes and fees are very important.
Many economists agree that a tax may be considered as a financial charge that includes a transfer of resources from the private to the public sector and this act of nonpaying transfers is punished by law. History has shown that taxes are not an invention of the modern era. They have been used many centuries ago for different purposes that were related mostly to public works, economic infrastructures etc. In our days, the taxes are levied on money or its labor equivalent. In the countries that came from a communist regime, firstly, a tax system was implemented based on the progressive tax.