A Critical Study on Defects in American Taxation System

Abstract: The word tax is derived from Latin word "taxare", which means to access or to predict and this concept has led to the evolution of assessment in taxation as it involves the estimation of amount of money assessee or an individual way to the government and to the respective tax jurisdictions. Tax is the core component of any economy; it is a major source of income which leads to revenue generation and development of the economy but in the recent times the tax is also affected by inflation stagflation an incorrect apportionment of taxes two different classes of the economy. there are 52 States in USA where most of the states have been facing lot of taxation issues. States such as New York, New Jersey, Pennsylvania, California, Colorado, Texas etc. have been facing lot of taxation issues in the recent times. such defects and problems require a proper solution and unique approach to ensure smooth flow of tax implementation in the economy. in this paper we are going to figure out the various defects on the loopholes that are present in the American taxation system how effectively are the taxation laws been enacted and implemented to the US citizens of different income classes.