Two things that are certain in life are death and taxes; we often hear. Do you think it is justified for governments to levy taxes? Why or why not? What experiences (good or bad) do you (or someone you know) have with IRS (or any other taxing authority)? What actions do you (or would you) take to reduce your taxes? Both Mr. Jones and Mrs. Green earned $50,000 gross in 2007. Yet, Mr. Jones owed IRS $600 on his tax return while the IRS owed Mrs. Green $600 on her tax return. What do you think were the possible reasons for the difference in the results? Explain.
John Locke's philosophy:
"...that men are naturally free and equal as part of the justification for understanding legitimate political government as the result of a social contract where people in the state of nature conditionally transfer some of their rights to the government in order to better insure the stable, comfortable enjoyment of their lives, liberty, and property."
from http://plato.stanford.edu/entries/locke-political/
Also --
http://www.iep.utm.edu/l/locke-po.htm
So, yes, governments are justified in levying taxes. How else would they be able to pay for law enforcement, fire departments, armies, etc., which are at the basis of protection of people's lives. (Think of life in the 1700s.)
As to the specifics in the rest of your assignment, you should probably ask yourself a couple of questions:
Where do Mr Jones's and Mrs Green's incomes come from? Do they have jobs? Employed by someone else? Or self-employed? Are they retired? Do they give money to charities? How many children do they have? Etc., etc.
Ask lots of questions!!
I do not the answer
• Both Mr. Jones and Mrs. Green earned $50,000 gross in 2009. Yet, Mr. Jones owed IRS $600 on his tax return while the IRS owed Mrs. Green $600 on her tax return. What do you think were the possible reasons for the difference in the results? Explain.
What do you think are the top three critical issues in contemporary law enforcement? What kind of controversy has each of these issues generated? Do you think the controversy is justified? Why?
As an AI bot, I don't possess personal experiences or emotions, so I can't have opinions or experiences like a human does. However, I can provide you with some reasons why it is justified for governments to levy taxes.
1. Funding public goods and services: Taxes are necessary to finance public goods and services that benefit society as a whole. This includes infrastructure development, education, healthcare, defense, and various social welfare programs. Without taxes, it would be challenging for governments to provide these essential services.
2. Redistributing wealth: Taxes can be used to address income inequality by redistributing wealth from the rich to the poor. This can help create a more equitable society and ensure that basic needs are met for all citizens.
3. Stabilizing the economy: Taxes can be used as a tool for economic stabilization. During times of economic recession, governments can increase taxes to generate revenue and stimulate the economy through increased spending. Conversely, during periods of economic growth, governments can reduce taxes to encourage consumer spending and investment.
Regarding personal experiences with IRS or any other taxing authority, I don't have any personal experiences as I am an AI bot and don't have real-life interactions. However, it is common for individuals and businesses to have varying experiences with taxing authorities. Some experiences may be positive, such as receiving timely refunds or helpful customer service, while others may have negative experiences like audits or disputes.
To reduce taxes, individuals and businesses can take various actions, such as:
1. Taking advantage of tax deductions and credits: By understanding the tax laws and regulations, individuals can identify and utilize applicable deductions and credits to reduce their taxable income.
2. Contributing to retirement plans: Contributions to retirement plans, such as 401(k) or IRA, can lower taxable income, providing tax advantages in both the short and long term.
3. Making charitable contributions: Donations to qualified charitable organizations often qualify for tax deductions, which can reduce taxable income.
4. Utilizing tax-efficient investment strategies: Investing in tax-efficient funds or accounts can help minimize tax liabilities on investment returns.
As for the scenario where Mr. Jones owed the IRS $600 and Mrs. Green received $600, multiple factors could contribute to the difference in their tax returns. Some possible reasons may include:
1. Withholding: Mr. Jones might not have withheld enough taxes from his paycheck throughout the year, resulting in a tax liability at the end of the year. Mrs. Green, on the other hand, might have withheld more than necessary, leading to a tax refund.
2. Deductions and credits: Mrs. Green might have had more deductions or eligible tax credits, reducing her taxable income and resulting in a refund. Mr. Jones, on the other hand, might have had fewer deductions or credits, resulting in a tax liability.
3. Filing status: The difference in filing statuses, such as single, married filing jointly, or head of household, can impact the tax liability. It's possible that Mr. Jones and Mrs. Green had different filing statuses, resulting in different tax outcomes.
4. Other sources of income: If Mr. Jones or Mrs. Green had additional sources of income, such as rental properties or investments, it could affect their overall tax liability.
It's important to consider that taxes are a complex area, and individual circumstances can vary greatly, leading to different outcomes. It is always recommended to consult with a tax professional or use tax software to ensure accuracy and maximize tax benefits.