Where are tax laws found?
As required by law, all regulatory documents are published by the IRS in the Federal Register. They are also republished in the Internal Revenue Bulletin (see below). A complete list of the Proposed Regulations still open for public comment on Regulations.gov.
Where Do All Tax Laws Begin?
Tax laws are the set of laws that govern how businesses, organizations, and individuals collect and use taxes. Every level of government in the United States, from local municipalities to the national government, has the ability to implement their own tax laws. This means that tax laws are not federal law but instead, are governed by the individual states. This article will discuss where all tax laws originate and how they are implemented in the United States.
Tax laws are created by Congress. Congress is the legislative body of the United States government, made up of the Senate and House of Representatives. Through Congress, all federal tax laws, as well as any interpretations of such laws, are enacted. Depending on the type of tax law, such as income tax or business tax, the President may have to sign off on the law before it is enacted.
Once a federal tax law is proposed and enacted, it is the responsibility of each individual state to implement those laws. States may create their own interpretations of the federal law and amend them according to the needs of the state. The states also have the ability to levy additional taxes on top of the federal tax amount. It is important to note that if a state elects to impose additional taxes or enact different interpretations of a federal tax law, they must abide by the constitutional restrictions imposed by the federal government.
Another important aspect of tax laws is local governments. Local governments, such as cities and counties, may also enact their own taxes, provided these taxes don’t conflict with federal or state laws. These local taxes can range from property taxes and stormwater taxes to sales taxes and excise taxes. Local governments typically have much more flexibility in terms of implementing tax laws than either the federal government or the individual state governments, as their taxes tend to more narrowly focused on localized needs and expenses.
Ultimately, all tax laws in the United States begin with Congress. The federal laws are then interpreted and implemented by the individual states and local governments according to their particular needs. This multi-layered system of taxation allows the US to maintain a relatively stable economic climate while still allowing states and local governments to provide citizens with the services and funds they need.