Tax evasion is the illegal evasion of taxes by individuals, corporations, and trusts. Tax evasion often entails taxpayers deliberately misrepresenting the true state of their affairs to the tax authorities to reduce their tax liability, and it includes dishonest tax reporting, such as declaring less income, profits or gains than the amounts actually earned, or overstating deductions.
Tax evasion is an activity commonly associated with the informal economy.[1] One measure of the extent of tax evasion (the "tax gap") is the amount of unreported income, which is the difference between the amount of income that should be reported to the tax authorities and the actual amount reported.
In contrast, tax avoidance is the legal use of tax laws to reduce one's tax burden. Both tax evasion and tax avoidance can be viewed as forms of tax noncompliance, as they describe a range of activities that intend to subvert a state's tax system, but such classification of tax avoidance is disputable since avoidance is lawful in self-creating systems.
The political, economic, and diplomatic crises of the 1780s played a great role in shaping the Constitution because they proved that the United States needed a much stronger central government that could tax freely and engage with other countries.
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How did the US respond to the Zimmerman Telegram?
In January 1917, British cryptographers deciphered a telegram from German Foreign Minister Arthur Zimmermann to the German Minister to Mexico, von Eckhardt, offering United States territory to Mexico in return for joining the German cause. This message helped draw the United States into the war and thus changed the course of history. Accordion
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