Some would say that 13 is an unlucky number. The year 1913 brought us the beginning of the
US income tax system, which many of us think of as an unfortunate fact of
life. But what many of us don’t know is
that we fill out tax forms not just to fund our government, but also to
contribute to society.
Filling Out Tax Forms Does More Than Fund The Government
It all started with the 16th Amendment, which authorized the
income tax in the United States. It was
created not only to financially support the government but also to promote
social and economic policies. The IRS
uses tax incentives to promote governmental preferences regarding how we live.
How Tax Credits Help Society
Earned Income Credit is an example of a social policy that’s
nudged along by the filling out of tax forms.
People in certain lower ranges of income can get an additional credit
and it helps increase the refund they get.
You can also get a credit for paying for child care…that’s
how the government encourages people to spend on day care.
The federal government also encourages you to contribute to
charity. Yes, there’s a tax form for that
too. Fill it out and you can see more
deductions from your taxable income.
Then there’s also the workforce development credit…hire
certain parts of the population, get tax credits. The idea is to help the economy by helping
disadvantaged populations.
Hurricane Katrina deductions and credits are examples of how
the tax system helps further economic policies.
There are deductions and credits for starting a new business in the New Orleans area, for
developing the workforce there. This is
designed to spur on the economy in areas hit by Hurricane Katrina.
Louisiana Business Tax Extension
Louisiana Business Tax Extension
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