federal taxation legislation essay sample. Prepare a research paper on how a piece of tax legislation becomes tax law. Your research should include: An explanation of the various levels of government involved in the process. An analysis of the how a House of Representatives tax bill can differ from a Senate bill. An explanation of the role of the general public in the tax legislation process. Your paper must meet the following requirements: Your written paper should be 1-3 pages in length not counting the title and reference pages, which you must include. Use key terms such as “LLC” and “Taxation,” for example. Use terms, evidence, and concepts from class readings. You need to cite at least three sources for this assignment. The CSU-Global Library (Links to an external site.) is a great place to find resources. You can also use Google Scholar (Links to an external site.) and www.ssrn.com (Links to an external site.). Do not use the textbook as a source. Your paper must be formatted according to the CSU-Global Guide to Writing and APA (Links to an external site.). If you need assistance with your writing style, start with the links under the Research Help and Writing Help tabs on the CSU-Global Library’s (Links to an external site.) homepage. Review the grading rubric, which can be accessed from the Module 1 Materials folder, to understand how you will be graded on this assignment. Reach out to your instructor if you have questions about the assignment.
Tax Legislation Process
Act 405, Federal Taxation of Individual
Process of converting tax legislation into tax law
The introduction of new tax legislation is achieved through the legislation process. The legislation process involves the conversion of a proposed bill into law through a series of steps. The first legislation originates from the House of Representatives from which it is forwarded to the Ways and Means Committee (The Joint committee on Taxation, 2019). The committee then discusses the legislation and arrives at a conclusion which is written down and is referred to as proposed law. After that, the proposed rule is then forwarded to the Full House where it is debated, and the necessary amendments are made, which leads to possible approval (The U.S Department of Treasury. (2010).
The next step involves the presentation of the bill to the Senate, which tends to review and forward it to the Finance committee (The U.S Department of Treasury, 2010). The finance committee rewrites the bill in its terms and forwards it to the Full Senate. The Senate reviews the bill and sends it to a joint committee consisting of the House representatives and the senate members (The Joint committee on Taxation, 2019). The joint committee discusses the bill and rewrites it in a compromise version (The Joint committee on Taxation, 2019). The House and the Senate receive the compromise version upon which it is required to approve.
Once Congress passes the bill, the president is the next person to either sign it into law or veto the bill (The Joint committee on Taxation, 2019). If the president signs the bill into law, the various agencies such as the treasury department and the internal revenue service take the necessary action to implement the law. If the president vetoes the bill, Congress has the option of overriding the veto by obtaining two-thirds of the votes from both houses.
Involvement of government in the process
The government is made up of the legislation and the executive branches. In the legislative process, the Congress which is made up of the House of Representatives and the Senate takes part in the process of passing legislation into law. At the executive level, the president tends to sign the bill into law or veto it. Also, through the various departments and ministries of the government, such as the Department of the treasury, the signed law becomes fully implemented. Therefore, the legislation process is entirely a government procedure.
Difference between House of Representatives tax bill and a Senate bill
The current congress has shown significant differences in the tax bills. For example, in regards to the tax bracket, the two houses have shown disagreement. The House of representative wants a cut on the tax bracket to simplify the tax code that will allow people to file on a postcard. Therefore the House proposed a reduction of tax bracket from seven to three which failed. On the contrary, the senate sticks to the tax bracket of seven (Rappeport, 2017). federal taxation legislation essay sample
The other difference in the tax bill is the timing of the tax-cutting. The House bill cuts the corporate tax perpetually to 20 percent. Also, the individual income tax has been made long-lasting by the House tax bill. On the other side, the senate is hesitant on the implementation of the tax cut, which exposes the individual tax cut to early expiry (Rappeport, 2017).
Additionally, differences in whether to repeal the affordable care act are evident in the house tax bill of the House and the Senate (Rappeport, 2017). The senate has provisions for revoking the healthcare Act that prevents the taxation of individual income for the purchase of health insurance. On the contrary, the House does not have any provisions on the repealing of the Health care Act.
The other difference in the tax bill is the state and local tax deductions (Rappeport, 2017). The house tends to allow for the taxation of property taxes while eliminating the state and local tax deductions. On the other hand, the Senate tax bill tends to reduce the state and local tax deductions.
The other difference in the tax bill is on the mortgage deductions (Rappeport, 2017). The House bill restraints the deduction of mortgage interests while the senate bill tends to allow for deductions of the mortgage interest, which raises the house bill costly.
Role of the general public in the tax legislation process
The general public tends to influence the legislation process informally. Among the most common means include contacting the congress and the elected members where they air their views on the bills (The U.S Department of Treasury, 2010). Also, the citizens can attend county or town meetings to outline their concerns on proposed bills (The U.S Department of Treasury, 2010). Lobbying is a prominent method in which citizens tend to influence the legislation process (The U.S Department of Treasury, 2010). Also, the use of signed petitions acts to influence the legislation process (The U.S Department of Treasury, 2010). Also, during the election process citizens tend to elect leaders who in turn make decisions on their behalf (The U.S Department of Treasury, 2010). Through the combinations of different means, the legislators tend to receive the views of the general public, which tends to influence the outcome of the legislation process. federal taxation legislation essay sample
In conclusion, the tax legislation process is an analytical procedure that allows the government to collect and regulate different LLCs and businesses. The legislation process depends on the success and the approval of Congress and the president.
Rappeport, A. (2017). The House and Senate Still Have Very Different Tax Bills. Here’s How They Compare. New York Times. Retrieved on 20 July 2019 from: https://www.nytimes.com/2017/11/16/us/politics/the-house-and-senate-still-have-very-different-tax-bills.html
The Joint committee on Taxation. (2019). The committee’s role in the tax legislative process. Retrieved on 20th July 2019 from: https://www.jct.gov/about-us/role-of-jct.html
The U.S Department of Treasury. (2010). Writing and Enacting Tax Legislation. Retrieved on 20 July 2019 from: https://www.treasury.gov/resource-center/faqs/Taxes/Pages/writing.aspx federal taxation legislation essay sample