A tax imposed on individuals depending on their respective profits and income is referred to as income tax. It is calculated in relation to the taxpayer’s taxable income. However, the taxation on each individual varies. The system of tax varies a lot and therefore can be proportional, progressive or regressive. Taxation laws in many countries are complex and much different from one group to another. The concept of income tax is a current innovation that presupposes lot of things some which include: accurate accounts, money economy, profit and expenses, common receipts and reliable records. The initial income tax attributed to Egypt in early decades, romans republic, income tax characterized of modest assessment on property and wealth. The tax rating was 1% and at times was 3% in circumstances such as war. These taxes were collected against homes land real estates, slaves, animals, monetary, wealth and personal items. In 1188, Henley 11 introduced the first tax on income called Saladin tithe. This was to raise third crusade money.
Generally income tax for each individual should be public. This would make it easier to hold on politicians and hooligans who try to fake and evade tax. This would also reduce economic inequality and fraud. Though income tax varies from one region to another, there are basic common principles to a number of income tax systems. In USA, partnership members are treated as having deductions, credit and income that is equivalent to the shares of each partner’s item. In 1924 October ordered for open public inspection of files that entailed American taxpayer’s income and the total amount they had paid as tax. In most countries, citizens tend to hate the income tax disclosure law. USA citizens were overwhelmed by the interest of their neighbor’s finance. The newspaper displayed a a list of Manhattans top tax payers under a banner that displayed income tax of “J,D.Rockerfeller Jr $ 7,435,169. The story highlighted that most wives and ex-wives queued on government offices to seek financial information regarding their former husband and the current.
The USA congress had ordered the income tax disclosure a tool to curb tax fraud. Senator Robert Howel, stated that the greatest support to corruption is secrecy.(Steven 2011) Wealthy Americans hated tax disclosure law and later persuaded the congress to execute a different dimension. The loopholes and strategies on tax avoidance tend to converge within the tax codes. These are created when individual’s looks for legal methods to evade paying tax. The vicious cycle helps wealthy individuals and large corporations that afford fees which come with more complicated tax planning.
High cost to labour and capital fixed by the income tax results to deadweight loss in the economy. Also there is loss from professional and individual advisors aiming to avoidance of tax. Public disclosure of individual’s income tax occurs mostly in Norway, Sweden and Finland.in Norway, since modern state 1814, tax record has been public. The study estimated that disclosure of records lead to 3.1 percent increase in exposed income of new self-employed Norwegians over three years.
Tax disclosure could also help to minimize income disparities as well as tax payment disparities. Transparency cold also aid to uplift economic growth of a country. Individuals who are aware how much their coworker earn and how much is paid to people in the industries and companies are able to make concrete decision on their career.
Tax record on property provides a reasonable model. The local government exposes the property owner of the business, the name of the business; amount paid and owed tax .in Norway any one can check who is fooling around. Wisconsin, makes tax information and income information available on requisition.(Thiel 2012) In United States, income taxation emerged in public view. The USA congress in 1861 initiated the income tax. It required the name, tax payments and incomes. On the same decade, before the congress ended the taxation, the data was publicized and on newspaper.
Tax transparency helps to identify and curd unnecessary discrimination against minorities and women (Harris 2012).Lilly Ledbetter 2009 could have experienced more as she was making less than male colleagues in a plant at Alabama if only she have checked on a government website their annual income.
Congress in democrats is fighting to get Trump the USA president file tax return on a separate 1924 law. This could be solved in parts if the congress enacts the boarder case on outlining everyone’s tax bill.
Americans pay their taxes with $450 billion less each year. This is more than 10% federal revenue. On publishing the list of tax evaders this year could generally reduce the number of people who pay no tax or very little every year (Bank 2011) .
Counties with residential system normally allow credits or deduction for the tax to the individuals who pay to their countries on foreign currency .In most countries they sign treaties to reduce or eliminate double taxation.in my opinion everyone’s income tax should be public for it has more virtues than vices. Publicity on income tax will raise the country’s economy at high rate .many tax payers who tent to evade tax or pay less in contrast to their basic income may be identified .according to the discussion above, it’s in order to state that income tax should be put to public.
Lal, B. B, and N Vashisht. Income Tax. I.K. International Publishing House Pvt. Ltd., 2012.
Thiel, Servaas van. Free Movement Of Persons And Income Tax Law. International Bureau Of Fiscal Documentation, 2002.
Weber, Caroline. “Does The Earned Income Tax Credit Reduce Saving By Low-Income Households?”. National Tax Journal, vol 69, no. 1, 2016, pp. 41-76. National Tax Association, doi:10.17310/ntj.2016.1.02.