This is Jenie from Texas. I am currently employed by a construction and development company as a
property accountant. For my goal to enter the tax industry, I am studying for a master's degree
with a taxation concentration.
A useful proxy for the total complexity of the federal tax system is the size of the tax code. For
example, it becomes more difficult for Americans to file their taxes quickly or accurately the more
there is to know about federal tax law. Why is the US tax system so complicated? It is partly
because politicians have used the tax code to manage a variety of government policies, from
energy to education to healthcare. It is partly because quantifying income and figuring out tax
liability are challenging tasks by nature. Additionally, it is partly since legislators have not made any
significant efforts to simplify the federal tax system in at least thirty years, instead piling new
provisions on top of one another, Tax Foundation by Greenberg (2015).
Foreign tax is one of the most crucial components of the US tax system. Multinational corporations
or organizations with a global presence are especially subject to international tax. The IRS
periodically revises and adopts new global tax regulations. This is also influenced by the nation's
tax regulations. I am sure there are so many situations/scenarios that the international tax code
interacts with the US tax codes. One of them I can point out is that Regulations for US-controlled
worldwide enterprises ban multinational organizations based in the US from using debt-equity
swaps and other earning-stripping techniques to move reported earnings outside of the US.
According to the Internal Revenue Service, it will take less time on average to complete individual
tax returns by 4 to 7 percent. It has been calculated the compliance savings might range from $3.1
billion to $5.4 billion in monetary terms. So, I think this signals the new tax act would help some
with the complexity of the current tax US code, York & Muresianu (2018).
My name is Monica Torgerson. I am married with three handsome boys. We are a military family
that has lived all over the states. Currently, we are stationed in Hawaii. Throughout the 12 years of
service, I have learned and experienced different types of laws and regulations that each state has
as well as the federal law. Some are more generic than others and some very specific to the state.
An example of that would be the state of New Jersey and the state of Oregon. In 1949 (New
Jersey) passed a band on self-service and in 1951 Oregon passed a similar band. There is always an
attendant on duty to pump gas for you. b The reasoning behind it was for safety reasons. "Allowing
self-service would increase fire hazards, create challenges for elderly citizens and drivers with
disability and lead to gas stationed attendants job losses"(CNN Business News) Another example is
the state taxes, not all states impose state taxes. Some of the states that do not have a state tax
are Washington State and Texas. Tax codes and laws are important to have, it refers to a series of
laws and regulations that outline the responsibilities for the general public related to taxation
However, they can be very complicated, but it is important to understand. In some instances, the
government and Congress can use them to improve growth in the economy and provide benefits
that would help their citizens.
I believe that the new tax act helps and provides a better understanding and provides a more
simplified and individualized perspective. The Tax Cut and Jobs Act of 2017 is geared to help the
individualized income taxpayer. It helps make the process easier and more efficient. It has provided
cuts and increased the standard deduction that would help the individual taxpayer.
On the business side, this act has lowered the incentive when earning income in other countries.
Before the 2017 Tax Cut and Jobs Act "US multinationals booked a disproportionate share of their
profits in low tax locations and reported over 40 percent of their overseas profits in three low tax
countries. They were Netherlands, Ireland, and Luxembourg"(TPC) After that Act was enacted it
reduces the profits and abuse but did not eliminate. There was a Global Low Tax Intangible Income
(GILTI) that was introduced that incrementally increases tax percentages throughout the years. It is
now at 13.125 percent lower than the US tax which is at 21%. I do believe the US tax code helps
business partners in other countries. It helps avoid double taxation, while the economy is growing.
I do think the US code is more competitive. It provides better conciseness for corporate entities
and for foreign entities. It is easier for foreign companies that derive their income from other US
and foreign sources and report their earning as the tax rate is harmonies. International tax laws are
critical since most multinationals are from the US. b It is important because the tax treaties between
nations specify the country that can collect taxes and the regulation is in place for businesses not
to avoid paying taxes. b The revenue that is earned by companies is taxed from a joint venture or
partnership either from foreign or domestic companies. The international tax is important for the
US tax code in order to figure out how to collect the tax.
Reference
CNN Business, Meyersohn, Nathaniel, June 18th,2022, "Why New Jersey and Oregon still don't let
you pump your own gas"Why New Jersey and Oregon still don't let you pump your own gas | CNN
Business
TPC, "Key Elements of the US Tax System", July 5th, 2023 What are the consequences of the new
US international tax system? | Tax Policy Center b
Tax Foundation Federal Tax Laws and Regulations are Now Over 10 Million Words Long | Tax
Foundation
The Accounting and Tax Why International Tax So Important To The US Tax Code? - The Accounting
and Tax
