A constitutional amendment allowing Congress to impose a federal income tax on individuals and corporations went...

A constitutional amendment allowing Congress to impose a federal income tax on individuals

and corporations went into effect in 1913. Since then, Congress has passed many laws

dealing with the federal income tax. One law that has an important effect on payroll work

is the Current Tax Payment Act of 1943. What is the term used to describe this law and do you

consider it a just law? What is the current administrations approach to this law?

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The Current Tax Payment Act of 1943 is best described by the term pay-as-you-go. The pay-as-you-go tax system requires the employers to withhold a portion of employee’s wages for the tax purpose. I do not consider it as just a law and it is a system to ensure proper tax payment without much difficulty for the employees. Pay as you go means paying the expenses as they arise instead of waiting for them to build up and the concept helps the employees to pay their income taxes conveniently.

The current Trump administration consider the higher tax paid through pay-as-you-go taxation system as a burden on the citizens and had promised to make the tax deductions to compete with other countries and reduced the corporate income tax rate to 21% from the 35%. The highest individual tax rate has been reduced from 39.6% to 37%, doubled the standard deductions and eliminated the penalties on the individuals without health insurance. Trump administration is trying to reform the tax structure and increase the take home salary for the US employees.

keosha answered 1 week ago

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