Taxes reflection paper

REFLECTION 1

Date of submission:

Reflection

Taxation is one of the topics that I find most interesting inaccounting. In this chapter (chapter 11), I got to learn importantinformation about the history of taxation in America. It isinteresting to learn that the federal law controls the tax structure.According to my opinion, this is quite crucial, given that taxes arepublic funds that need to be protected for the best interest of thecitizens. Similarly, it was interesting to learn that taxation isclassified into different types. While I expected taxes such asproperty and income tax to exist, it was quite astonishing to learnthat there are death and gift taxes. Regardless, I found thissubtopic to be quite easy to understand, unlike others such as theexcise taxes. I found it quite complex for learners to comprehend thedetails of imposed severance and federal estate tax. However, this isa challenge for me as I set to learn more about the American taxesand how they are handled at different fronts.

I found the federal gift tax topic to be as interesting as it wassophisticated. While I understood the topic to be about unifiedtransfer credit for gifts, I reflected on an incidence that made theissue quite complicated. I got to learn that state employees, such asthe president and senators, are not required to accept gifts,especially from foreign nations. This happened after President Obamaleft behind several gifts that he received from countries that hevisited (Bump, 2014). I thus set it as a target to learn whether suchgifts are subject to taxation or not. Moreover, I got confused when Ilearnt that there are states that impose income tax on individuals,while others cannot. These states include Alaska and Nevada. Stateslike New Hampshire and Tennessee only impose individual income tax oninterest and dividends. I therefore fail to understand why stateswould have different taxation laws, yet they are run under the sameeconomic system.

References:

Bump, P. (4 August 2014). All 274 gifts given to Barack Obama between2009 and 2012, ranked. The Washington Post. Retrieved 12November 2015 fromhttps://www.washingtonpost.com/news/the-fix/wp/2014/08/04/every-gift-given-to-barack-obama-between-2009-and-2012-ranked/