Taxes play a vital role in the United States of America. The tax policy of any country has important economic consequences. Their objective is to promote economic growth. They control the equal distribution of economic resources and lead to desirable or undesirable economic behaviour on the part of citizens. Most important of all, Taxes provide the revenue needed for critical public services such as social security, health care, national defence, and education. Taxation is an important, but commonly neglected, topic for students of economics, political science, and other disciplines.
Difficulties faced by students studying USA Taxation and Law
- In United States, taxation is very complicated. A single glimpse at the Tax Code of over 6000 pages is frightening.
- Changes are made in the code every year, making it all the more complex.
- There are separate states and local governments in the Federal Republic of United States of America. The taxes are imposed at the state and local levels, on income, payroll, property, sales, capital gains, dividends, imports, estates and gifts, as well as various fees.
- Taxes are also levied by other jurisdictions like cities, making taxation in United States baffling.
- Taxation is as much a political issue as an economic issue.
- The tax code is packed with thousands of rules.
- When Americans have to spend many hours every year working on their taxes and spend a lot of money on accountants, imagine what may be the plight of students who study taxation law in the United States.
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Taxation Law is studied by students of economics, commerce, management, political science and many other disciplines. The background of these students is different and so are their aims. Yet, the curriculum converges at the point of Taxation Law, which may be part of the curriculum of varied disciplines. The depth in which these students are required to study Taxation law may vary. Whatever, the depth and scope, the tax code is enormous and complicated. Students are required to write assignments related to the subject. The assignments carry major weight of internal assessment marks. Students who are still grappling with the subject are unfamiliar with new concepts, new to the thousands of rules and technical terminology involved. Most of the assignments are application based. How can students be able to apply theories that are not sufficiently mastered at the student level?
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