Tax law or taxation law is a field of law where governmental or public bodies, including state, national and local governments employ a system of rules and systems to compute and collect taxes from individuals or enterprises in a legally binding context. It is used to analyze the impact of tax legislation on society as a whole. The subject of hk tax law covers taxation at both individual and institutional levels. There are many issues that arise in the area of tax law, including taxation of income, estate, inheritance, property and corporate business. Taxation is used to direct resources to achieve objectives, provide for public welfare, collect revenues, distribute wealth or redistribute the wealth. The aim of taxation is to ensure that the distribution of resources can occur as intended.
Generally, tax law is divided into three categories: Internal revenue laws and legislative methods, state taxation and statutory rules governing direct taxes. Internal revenue laws regulate how states and municipalities to levy and collect income taxes and direct taxes. These include: Rates, exemptions, standard rate schedules, and tax brackets. States use internal revenue codes to control property and casualty insurance premium payments, to restrict tax liens, and to restrict tax immunities provided to residents and corporations. States also use internal revenue codes to implement economic policies, public education, and programs for preventing crime, and to promote bonding and transportation.
Congressional leadership confine this jurisdiction of tax codes in two areas: federal tax laws and state tax laws. Federal tax laws are legislated by both the U.S. House of Representatives and the U.S. Senate. They are primarily responsible for the regulation of national tax revenues and the collection of federal tax revenues. Representatives and U.S. Senators must pass a joint resolution of disapproval before a bill is signed into law. In the event that a disapproval resolution cannot be passed, the bills are then sent back to the appropriate committees for further action.
State tax law is administered differently than federal tax law. Most states allow their residents and businesses to file personal income tax returns and do not require them to file state tax returns. However, some states still require residents and businesses to file state tax returns. Additionally, some states and municipalities to levy property and casualty taxes on their citizens and imposed additional tax tariffs on companies and other individuals conducting business in these municipalities. In order to administer and collect these local tax revenues, local governments employ a board of accountants, tax lawyers and tax experts.
Tax laws also affect corporations. In general, corporations are exempt from the taxation of their owners' salaries, profits and dividends. Certain types of corporations are treated differently under tax laws, e.g., partnerships are subject to taxation under generally accepted corporate accounting principles, while for corporations, all sources of income are subject to taxation. Corporate tax law provides methods of financing, borrowing and distributing capital. Taxation of corporations is based on their level of equity, voting power and debt and ownership structure.
The Internal Revenue Code and the U.S. Tax Code are the two main tax codes in the United States.
The U.S. Tax Code is considering the federal tax law and the Internal Revenue Code the federal tax laws governing state tax laws. There are many different sections of the Internal Revenue Code including Income Tax Laws, Regulations, Excise Tax, Unfunded Mandates, Annual Obligations, Tax Credit, Tax Collections, and Rates. The Income Tax Laws covers various types of tax such as corporate income tax, personal income tax, the dividends tax, estate tax, and Social Security tax. A tax debt is the difference between what a person pays in taxes and what they actually receive in return. Kindly visit this website: https://www.britannica.com/topic/taxation for more useful reference.