Proposed Changes in Federal Taxation of Community Property: Income Tax

Abstract In the United States, tax favoritism—an approach that has weakened the extractive capacity of the federal government by providing tax loopholes and preferences for taxpayers—has remained since the 1930s. It has consumed the amount of tax revenue the government can spend and therefore weakened the possibility of the redistribution of fiscal resources. It has also made the federal tax system complicated and inequitable, resulting in undermining taxpayer consent. Therefore, since the 1930s, a tax reform to create a simple, fair, and equitable federal income tax system with the capacity to raise revenue has been long overdue. Many scholars have evaluated the Tax Reform Act of 1969 (TRA69), which Richard M. Nixon signed into law on December 30, 1969, as one of the most successful steps toward accomplishing this goal. This article demonstrates that TRA69 left tax favoritism in the United States. Furthermore, it points out that TRA69 turned taxpayers against the idea of federal taxation, a shift in public perception that greatly impacted tax reform in the years to follow.

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To Save State Residents: States' Use of Community Property for Federal Tax Reduction, 1939–1947

Law and History Review ◽

10.1017/s0738248000003916 ◽

2009 ◽

Vol 27 (3) ◽

pp. 585-625

Author(s):

Stephanie Hunter McMahon

Keyword(s):

Income Tax ◽

Family Income ◽

Married Couples ◽

State Law ◽

Property System ◽

Community Property ◽

Tax Reduction ◽

Marital Property ◽

Federal Income Tax ◽

Property Regime

In 1939, at the end of almost two decades of statewide want and despair, Oklahoma adopted the community property system “to save state residents on their federal income tax.” Between 1939 and 1947, Oklahoma and four other states openly and unabashedly exploited the Supreme Court's creation of what amounted to a tax loophole for the nation's wealthy; several more states seriously considered doing the same. In 1930, the Court had ruled that the community marital property regime of eight western states permitted their married couples to split family income between spouses, so that each spouse reported half of that income for federal income tax purposes. As a result of the federal government's progressive income tax bracket structure, in most cases this split meant that more of the family's income would be taxed in lower tax brackets. Thus, a property regime that was purely a creation of state law had the effect of reducing residents' federal tax obligations.

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Proposed Changes in Federal Taxation of Community Property: Estate and Gift Taxes

California Law Review ◽

10.2307/3477544 ◽

1942 ◽

Vol 30 (5) ◽

pp. 527

Author(s):

George E. Ray

Keyword(s):

Community Property ◽

Federal Taxation

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RESULTS OF TAX REFORM:IMPROVING THE TAXATION OF PROPERTY INCOME OF INDIVIDUALS

Innovation in the economy ◽

10.26739/2181-9491-2021-5-12 ◽

2021 ◽

Vol 4 (5) ◽

pp. 78-84

Author(s):

Komil Mamatmurodovich Sayidov ◽

Keyword(s):

Income Tax ◽

Legal Framework ◽

Minimum Amount ◽

Individual Property ◽

Current State ◽

Property Income ◽

The Republic ◽

Legal Entities

This article examines the property income of individuals in accordance with the legal framework of the Republic of Uzbekistan, their composition, the current state of taxation of property income of individuals. According to the results of the study, it wasproposed to reconsider the minimum amount of rent for property leases, as the minimum rent for the use of state-owned realestate for legal entities is very low, legal entities -business approval of separate rental rates for entities; taking into accountthat it is not less than the minimum amounts established for individuals.Keywords: Tax Code of the Republic of Uzbekistan, individual, property income, objects belonging to individuals, income declaration, income tax, source of income

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