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People want to get their pet projects through. Many people use voting for candidates that vote for their projects as a method of bribery.
It is very easy to buy votes with other people's money. It is very hard to tell someone no, you are spending too much on something. The problem is further compounded when that money is being spent to feed children who have parents that fail to provide for them with their own sweat and ethical work behavior.
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∙ 13y ago
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Why did the IRS enact the 20 percent withholding for distributions from employer sponsored retirement plans?
First, the IRS does not enact laws. It only carries them out and sometimes enforces them. Just like any other Department of the government does. Congress makes and votes on all the tax laws (like all the other laws), including the one you ask about. Unless the funds are rolled over to another qualified plan, using qualified intermediaries, they are taxable. They are not taxable if rolled over properly, and hence, no withholding is done. Hence, to avoid someone taking the funds, normally a fair amount of money, and spending it without keeping an adequate amount to pay tax, withholding is done. (Payouts not roll overs ARE taxable). Generally, all withholding requirements are for the same reason - to assure the tax on what would be expected to be a taxable income are in fact paid. Too many people, inspite of all the advice from financial professional, especially in the midst of emotional turmoil and concern after losing a job, would take their money as a payout...and either end up depleting their retirement savings, or at the very least, having a huge tax bill to pay shortly (and large reduction in their savings).
Why do have to pay in taxes at the end of the year after it has been held out of check?
Part of being a responsible citizen of a country is to contribute to the funding for running the country. This contribution is called tax and to make sure everyone pays a fair amount the country will enact tax laws.However sometimes the way we earn money in a year is complicated and we have to add up and declare how much money we made in the year (all of it). This is done retrospectively at the end of each financial or tax year.If when you add up your earnings you find that you have under or over contributed what the law says you should pay in tax, then you must either pay the state what is owed or maybe state must pay you some tax back.
In what year did the IRS first provide tax forms and booklets?
According to the article, 'Brief History of IRS', on the IRS website (www.irs.gov), in 1862, the position of Commissioner of Internal Revenue was created. An income tax was enacted to pay expenses of the Civil War. Ten years later, the income tax was repealed. Congress then re-enacted the income tax in 1894. But the U.S. Supreme Court decided in 1895 that the income tax was unconstitutional.The Sixteenth Amendment giving Congress the authority to enact an income tax was ratified in 1913. The first Form 1040 was released in 1913. The article has a link to the 1913 Form 1040. The form is three pages long with one page of instructions. To see the 1913 Form 1040, go to www.irs.gov. Select 'About IRS' in the upper right corner. In the 'About IRS' screen, select 'Brief history of IRS'.
What year did the IRS automatically start withholding income tax from paychecks?
OriginThe roots of IRS go back to the Civil War when President Lincoln and Congress, in 1862, created the position of commissioner of Internal Revenue and enacted an income tax to pay war expenses. The income tax was repealed 10 years later. Congress revived the income tax in 1894, but the Supreme Court ruled it unconstitutional the following year. 16th AmendmentIn 1913, Wyoming ratified the 16th Amendment, providing the three-quarter majority of states necessary to amend the Constitution. The 16th Amendment gave Congress the authority to enact an income tax. That same year, the first Form 1040 appeared after Congress levied a 1 percent tax on net personal incomes above $3,000 with a 6 percent surtax on incomes of more than $500,000. In 1918, during World War I, the top rate of the income tax rose to 77 percent to help finance the war effort. It dropped sharply in the post-war years, down to 24 percent in 1929, and rose again during the Depression. During World War II, Congress introduced payroll withholding and quarterly tax payments.
The leaders of a small country decide that they need to enact a contractionary fiscal policy Which action is consistent with this fiscal policy?
A reduction in government spending is consistent with a contractionary fiscal policy.
How does growth in the number of interest groups and PAC's make it difficult for the federal government to enact public policy?
As more interest groups and PACs are made it becomes extremely difficult for the government to please everyone
What prompted China's government to enact this policy?
The One Child Policy was enacted in the late 1970s to limit the population growth.
How do you distinguish fiscal policy from monetary policy?
Opinions about if fiscal policy or monetary policy is better will vary depending on who you ask. One country may benefit greatly with fiscal policy, while another may not. It all has to do with their economic system.
How does weak party discipline make it difficult for federal government to enact public policy?
Weak Party Discipline makes it difficult to enact public policy because of individuals' inability to follow the party policies. Traditionally party members set an agenda in a caucus and agree on this policy, and this policy is enforced by the Party Whip ( the policy maintainer) however some outliers in a party can choose to disagree on there own free will. This causes cohesion on an issue to falter and a party grows less and less stable. If a majority is needed to pass a bill, and a party already needs to convince a few members of the opposition to join their side having weakly disciplined party members only increases their chance that the bill will end up in gridlock and possibly be killed.
What is the rational activist model?
Rational-Activist Model: Public exerts pressure electorally. Representatives must enact policy demands of the public or the public will elect some else who will enact those policies.
Why totalitarian policy did the Soviet Union enact under Joseph Stalin?
Arresting and executing citizens who were suspected of disloyalty to Stalin
Should the US Federal Government enact an open border policy with Canada and Mexico?
Right now it is very unlikely to have such policy implemented. See related questions for some details.
When government policies are enacted what does that mean?
When a government enacts a policy, it means that they are making it a law. Before the government can enact a policy, it is first presented as a bill and must be voted on by members of government.
Distinguish between discretionary and non-discretionary fiscal policy?
Non-discretionary policies are ones that automatically happen. A progressive income tax and the welfare system both act to increase aggregate demand in recessions and to decrease aggregate demand in overheated expansions. Discretionary policies are those that the government chooses to do in response to conditions -- e.g. enact a tax rate cut.
The three tools the Federal Reserve uses to enact monetary policy are?
the three tools the Federal Reserve uses to enact monetary policy are setting the interest rate charged to commercial banks on loans from the Federal Reserve. Setting the reserve rate. The buying and selling of Treasury bonds and other government-backed securities
What did the Federal Reserve refuse to do in order to keep a run on the banks from causing a failure of the US banking system?
The Fed refused to enact a tight monetary policy by tightening the monetary policy to stop inflation.
