The Debate Over The Tax System Essay

The Debate Over The Tax System Essay

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The article written by Josh Barro discusses a part of the Republican party debate that happened on the 10th of November this year 2015. The Republican Presidential candidates were presented of economic problems the United States is currently facing today and was asked to provide solutions on how to fix them. Topics of immigration, bank regulations, national security were brought up, but the article focuses on the debate over the tax system. In the debate, two main questions were brought up in the topic of tax. The first question asked is whether current taxes should be lower or way lower. Candidate Donald Trump proposed a tax cut that would result to about $11 trillion loss of the expected government revenue in over a decade. Governor John Kasich of Ohio proposed to cut tax on personal income tax rate, top capital gains tax rate, and top corporate income tax rate. He proposed the numbers as followed: from 39.6 percent to 28 percent on personal income tax rate; from 23.8 percent to 15 percent cut on top capital gains tax rate; and from 35 percent to 25 percent cut on top corporate income tax rate. The second question asked the concern of whether there should be fewer tax rates or just one single rate for everyone regardless of income bracket. The debate split into two equal opposing side with candidates Ben Carson, Ted Cruz, Rand Paul and Carly Fiorina agreeing on flat tax rates while candidates Donald Trump, John Kasich, Jeb Bush and Marco Rubio insists on keeping the graduated tax rates, but agrees on lowering the current 39.6 percent tax rate. Additionally on the side of flat tax proposals, Ben Carson tied his proposal with the traditional 10 percent tithe, the taxing of 10% from annual income, while on the pro current tax syst...

... middle of paper ... have potential, with its expected outcome easy to comprehend. The idea is that when you decrease the taxes, more money will go to the consumers as well as producers which will increase savings and investments, ultimately stimulating the economy. However, the tax cut policy brings in the arguments of whether the “cut tax, cut red tape, get growth” formula used by the Republicans still works. It also brings the question of whether it is really what the US economy needs right now. Will it solve the national debt and wealth inequality issues and how effective is it really to achieve positive economic growth? It seems that the Republican candidates hadn’t provided any fresh answers that will help us solve real problems of today’s economy such as how to share the economic pie fairly, the problem of shrinking middle class jobs, and how to build the 21st century workforce.

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