Begin by reading the below prompt: It wasn’t until 1913 that the United States introduced an income tax. Along with the

[answerhappygod]

Begin by reading the below prompt: It wasn’t until 1913 that theUnited States introduced an income tax. Along with the 16thAmendment came income taxes, first levied on individuals. Whileincome taxes were created primarily for economic reasons—to helpraise revenue to operate the government, expand investments, reduceunemployment and control inflation—they also were created to helpestablish a form of social policy. The economic reasons for incometaxes are to maintain and—when necessary—improve the overall healthof the national economy. Economic-based taxes include taxes onthings like income, property and goods. These taxes help fundgovernment programs that benefit a wide cross-section of thepopulation—like social security, healthcare, public schools anddefense spending. Taxes on things like cigarettes are a form ofconsumption tax—this tax helps deter smoking by making it moreexpensive, while the revenue from the tax is also used to help fundeducation programs and awareness of the hazards of tobacco use. Thesocial goals of income taxes contribute to the financial success ofour society as a whole by improving individual, financialwellbeing. Tax laws and rules that drive social behavior includechild care credits, education credits, charitable contributiondeductions, IRAs (individual retirement accounts) andemployer-sponsored deferred benefit savings plans such as 401(k)and 403(b) plans. Both types of taxes help to improve our societyand economy even though they function in different ways. Whileeconomic taxes raise revenue to fund vital government programs thatbenefit all tax payers, socially-derived tax laws help improvesociety by rewarding those individuals who participate inactivities that strengthen our communicates and economy. Here aresome examples of socially based tax laws that our society andeconomy benefit from: In 1998, Congress made available theCoverdell Education Savings Account (ESA) that allows anyindividual to contribute $2,000 per year to an IRA as a means tofund the rising costs of college tuition. The advantage of the ESA,as opposed to other savings vehicles, is that the contributions tothis account and the earnings it generates may be withdrawntax-free if they are used to pay for college tuition. The TaxpayerRelief Act of 1997 established the Roth IRA, named after DelawareSenator William Roth, to help drive individuals to plan ahead forretirement. As of 2012, taxpayers can contribute up to $5,000 ayear ($6,000 a year for those over 50) for themselves to a Roth IRAand never pay taxes on the contributions and earnings uponwithdrawal. In 2009, the American Opportunity Tax Credit passed,offering a partially refundable tax credit worth up to $2,500 perstudent per year. This credit helps more than 8 million studentsand their families afford the cost of college. The Earned IncomeTax Credit, sometimes called EIC, is a tax credit to helpindividuals keep more of what they earn. It’s a refundable federalincome tax credit for low- to moderate- income working individualsand families. Congress approved the tax credit legislation in 1975partly to offset the burden of social security taxes and to providean incentive to work. The American Recovery and Reinvestment Act of2009 is a former tax law (no longer current) that offered a taxcredit for first time homebuyers of up to $8,000. This was createdto help make home ownership attainable for many Americans and tohelp stimulate economic activity during a period of recession. Theformer Making Work Pay provision of the American Recovery andReinvestment Act of 2009 provided a refundable tax credit (in 2009and 2010) of up to $400 for working individuals and up to $800 formarried taxpayers filing joint returns. Requirements Each studentis responsible for: Creating an original post to the prompt ANDResponding to at least one of their peers For a minimum of 2responses. Original Posts Answer the two (2) discussionquestions:
Put on your state and federal thinking caps to come upwith new laws – one that is socially based and one that iseconomically based. Write a new law that's socially based statingthe purpose of the law, who it would impact, funding, and if itwould be administered on a state-wide, federally, or both. Write anew law that's economically based, stating the purpose of the law,who it would impact, funding, and if it would be administered on astate-wide, federally, or both.
Thank you