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Income Taxes We generally don’t think

游客2023-09-03  28
问题                                        Income Taxes
    We generally don’t think much about taxes except during the annual tax season. It’s probably the most dreaded time of the year for millions of Americans, yet we circle it on our calendars along with holidays and birthdays. But little joy is connected to April 15, which is the deadline for filing tax forms.
    The American tax system is a huge machine with a tax code that seems more complex than rocket science. In this article, we will take a look at the history of income taxes in the United States, examine the process of individual income taxation.
Taxes in Early America
    Taxes have always left a sour taste in the mouth of American citizens. This national hatred for taxes dates hack to the tax burden placed on the American colonies by Great Britain. Colonists were taxed for every consumer good, from tea and tobacco to legal documents. This "taxation without representation" led to many revolts, such as the Boston Tea Party, in which colonists dumped tea into the Boston Harbor rather than pay the tax on it.
    Although the American colonists fought for independence from British rule and British taxes, once the United States government formed, its main source of revenue was derived from placing customs and excise taxes on the same items that were taxed by Great Britain. In 1812, in an effort to support an expensive war effort, the U.S. government imposed the first sales tax, which was placed on gold, silverware, jewelry and watches. In 1817, internal taxes were terminated and the government relied on tariffs to support itself. It wasn’t until 1862 that the United States imposed the first national income tax.
    To support the Union Army, Congress passed tax laws in both 1861 and 1862. The office of Commissioner of Internal Revenue was established by the Tax Act of 1862, which stated that the commissioner would have the power to levy and collect taxes. The office was also given the authority to seize property and income in order to enforce the tax laws. These powers remain pretty much the same today, although the Internal Revenue Service (IRS) will tell you that enforcement tactics have been toned down a bit.
The First Income Tax
    In 1863, the federal government collected the first income tax. This graduated tax was similar to the income tax we pay today. Those who earned $600 to $10,000 per year paid at a rate of 3 percent. A higher rate was paid by those who earned in excess of $10,000. A flat-rate tax was imposed in 1867. Five years later, in 1872, the national income tax was repealed(撤销) altogether.
    Spurned on by the Populist Party’s 1892 campaign, Congress passed the Income Tax Act of 1894. This act taxed 2 percent of personal income that was more than $ 4,000, which only affected wealthiest citizens. The income tax was short-lived, as the U.S. Supreme Court struck it down only a year after it was enacted. The justices wrote that, in their opinion, the income tax was unconstitutional because’ it failed to abide by a constitutional guideline. This guideline required that any tax levied directly on individuals must be levied in proportion to a state’s population.
    In 1913, the income tax became a permanent part of the U.S. government. Congress avoided the constitutional roadblock mentioned above by passing a constitutional amendment. The 16th Amendment reads, "The Congress shall have power to lay and collect taxes on incomes, from whatever source derived, without apportionment among the several states, and without regard to any census or enumeration(列举)." The 16th Amendment gave the government the power to levy taxes on individuals regardless of state population. The Underwood Tariff Act of 1913 included an income-tax section that initiated the system we use today. During World War II, the federal government began withholding taxes, also known as the pay-as-you earn taxation system. This gave the government the steady flow of money needed to finance the war effort.
The Tax Process
    Today, the American tax system can be likened to a perpetual motion machine. While most Americans tend to only think about the tax system and the IRS as the month of April approaches, it’s actually a never-ending process. Let’s take a look inside the tax system and examine its various steps. For our purposes, a good way to explain how the system works is to watch one American income earner—let’s call him Joe—as he goes through a year of the American tax process.
    The tax process begins when Joe starts his new job. He and his employer agree on his compensation, which will be figured into his gross income at the end of the year. One of the first things he has to do when he’s hired is fill out all of his tax forms, including a W-4 form, The W4 form lists all of Joe’s withholding allowance information, such as his number of dependents and childcare expenses. The information on this form tells your employer just how much money it needs to withhold from your paycheck for federal income tax. The IRS says that you should check this form each year, as your tax situation may change from year to year.
    Once Joe is hired and given a salary, he can estimate how much he will pay in taxes for the year. Here’s the formula.
    Start by assessing gross income, which includes work income, interest income, pension and annuities(养老金).
    Subtract any adjustments (examples: alimony(赡养费), retirement plans, interest penalty on early withdrawal of savings, tax on self-employment, moving expenses, education loan interest paid). The difference is the adjusted gross income (AGI).
    Once the AGI is calculated, there are two choices: Either subtract a standard deduction, or subtract itemized deductions, whichever is greater. Itemized deductions might include, but aren’t limited to, some medical and dental expenses, charitable contributions, interest on home mortgages, state and local taxes and casualty loss.
    Next, subtract personal exemptions to end up with taxable income.
    Go to the IRS tax tables if taxable income is less than $100,000, or to the IRS tax rate schedules if it’s more than $100,000. This is where it gets a little complicated, because the United States uses a marginal tax rate system. There are six tax brackets: 10 percent, 15 percent, 25 percent, 28 percent, 33 percent and 35 percent. How the tax rate works depends on income and marital status.
    For those using the tax table, look for taxable income on the chart and to find gross tax liability.
    For those making more than $100,000, use the tax-rate schedule to figure gross tax liability.
    From your gross tax liability, subtract any credits. Credits may include such items as child care. The difference is the net tax, which is how much to pay or how much of a refund to expect.
    At the end of each pay period, Joe’s company takes the withheld money, along with MI of withheld tax money from all of its employees, and deposits the money in a Federal Reserve Bank. This is how the government maintains a steady stream of income while also drawing interest on your tax dollars.
Filing Income Taxes
    Toward the end of the tax year, Joe’s company has to send him a W-2 form in the mail. This happens by January 31. This form details how much money Joe made during the last year and how much federal tax was withheld from his income. This information can also be found on Joe’s last paycheck of the year, but he’ll need to send the W-2 to the IRS for processing purposes.
    At some point between the time Joe receives his W-2 and April 15, Joe will have to fill out and return his taxes to one of the IRS service and processing centers. Once the IRS receives Joe’s tax returns, an IRS employee keys in every piece of information on Joe’s tax forms. This information is then stored in large magnetic tape machines. If Joe is due a tax refund, he is sent a check in the mail in the next few weeks. If Joe uses E-File or TeleFile, his refund can be direct-deposited into his bank account.
选项 A、Y
B、N
C、NG
答案 A
解析 由题干关键词American people，annual tax season可将答案定位至第一段第一、二句。该段中…It’s probably the most dreaded time of the year…yet we circle it on our calendars along with holidays and birthdays，句中提到把税季与节假日、生日一样标在日历上，说明了它的重要程度，再加上terrible是原文dreaded的同义词，证明本题陈述正确。
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