Good Example Of Taxes And Finances Research Paper

Type of paper: Research Paper

Topic: Taxes, Government, System, Banking, Income, United States, Federal Reserve, Politics

Pages: 2

Words: 550

Published: 2021/02/05

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Introduction

Taxes are complicated and to understand the role of taxes in American society it is important to comprehend the imposing complexity of the tax code as tax has important economic importance (Corder 134). This paper seeks to analyse the Federal Reserve System in U.S, taxation system and how the United State allocates its financial resources.
Federal bank system is a system that is compost of twelve Federal Reserve districts that operate under the reserve board and each containing member bank that is regulated and served by the Federal Reserve Bank that performs functions that are similar to Bank of England (Kelemen, Daniel, and Terence 364). As it is commonly known, federal banks in the Federal Reserve System regulates the U. S monetary and financial system.
On the other hand, the free market is an economic system in which the allocation of the resources is determined by the forces of demand and supply (Corder 84). There is unrestricted competition between businesses without government intervention making buyers and sellers to make the deals they would wish to make without any interference. A stock market is a good example of a free market.
A lot of Americans think that the federal government spend relatively higher money on the federal programs than they do (Kelemen et al. 355). This makes it necessary to clarify on the spending of the government that is in the following categories. Discretionary spending like education, defence, foreign aids, agriculture, immigration, housing, space exploration, border patrols, highway construction and emergency disaster relief. Individual locals also have their spending on the medical care, food, clothing, education, housing, gifts, parties, field trips and many more.
According to Kelemen, Daniel, and Terence (359), taxation in U.S. takes into account individual’s income. Taxes increases with the increase in the individual households income. Individuals with higher income not only pay higher tax, but they also have higher rates of taxation. For example individuals earning $100000 might pay 25% of their income as tax while individual earning $20000 might pay 10% as the tax rate this makes progressive tax system to be more appropriate (Kelemen et al. 360).
Federal debts of the United States today stands at 18 trillion that forms gross national debts that is given by the United State Department of the treasury that is exclusive of the local debts and the unfunded liabilities of entitlement programs like social security. This figure is expected to rise by the end of the financial year of 2015 (Corder 113). This is mainly because of the increased borrowing from the international banks like World Bank.
Following tax principle of exception, individuals that earn less than a dollar or their salary scale fall below $20 are exempted from the tax bracket but the government is liable to provide essential services to all its citizens including those that have not paid the tax as this is a sole responsibility of the government. For individual households, they are supposed to pay or keep taxes depending on their earning as tax rates vary with the level of income, for example, a person earning $30000 with a tax rate of 10% will pay$ 3000 as tax (Kelemen et al. 350).

Sample budget

Budget of the month
Conclusion
Although the formulas used by localities vary considerably, tax is an assessment that is on the values of the property that is commonly collected at the local level. But the findings reveal that most property taxes tend to be regressive. The Reason being that high-income households tend to have lower part of their property exposed to tax.

Works Cited

Corder, Kevin. Central Bank Autonomy: The Federal Reserve System in American Politics. Routledge, 2014.
Kelemen, R. Daniel, and Terence K. Teo. "Law, Focal Points, and Fiscal Discipline in the United States and the European Union." American Political Science Review 108.02 (2014): 355-370.

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Good Example Of Taxes And Finances Research Paper. Free Essay Examples - WePapers.com. https://www.wepapers.com/samples/good-example-of-taxes-and-finances-research-paper/. Published Feb 05, 2021. Accessed September 19, 2021.
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