Fiscal Policy : The American Economy

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Fiscal Policy As today the American economy is in decent shape, the unemployment is falling, nevertheless our infrastructure is crumbling, the working-class earnings slowly decreasing, jobs are going to overseas, and vast majority US Citizens believes government leaders they elected disaffected them. Luckily this issues gain ground and turn into be the center of the 2016 presidential election debate, once Republican elected president Donald Trump, and Democratic Senator Bernie Sanders, made the core of their campaign agenda. In order to boost the economy, Mr. Trump proposed that he will use fiscal stimulus policy; significantly reducing marginal tax rates for both corporations, and individuals, increasing Tariffs on imported goods, expanding expenditure toward rebuilding our crumbling infrastructure and forcing corporate America to invest this nation. Theoretically speaking Mr. Trump’s this sounds great plan, it boost incentives to work, save, and invest, but in the same fashion, it harms more then it helps, considering macroeconomic feedback The plan would reduce federal revenues by 9.5 trillion over its first decade, poverty and income inequality gap will rise, it can only be desecrated as Trickle-down economics proposal. Mr. Trump wants to reduce the corporations and business tax rate from 35 percent to 15 percent, and to eliminate the existing seven tax brackets, which range from 10 to 39.6 percent, into only three brackets of 10, 20, and 25 percent. He cited the intention of this fiscal policy is to help the working class for better wages, and encourage corporations to invest more in America, and bring back the jobs they sent it overseas. This seams a great strategy but critics undermined his proposal, according to analy... ... middle of paper ... ...ill inspire more investment and consequence in businesses deducting more capital investments, which would reduce corporate taxable income, to tackle this plan all the loopholes should be closed. Investing crumbling infrastructure with loan is not an answer, also keep in mind we use the roads, bridges…etc, and we get great benefit from this public utility, but the contracts and big constriction companies who are majority of the time don’t reside where the work get the real money and spend it somewhere else. Increasing Wage is the only realistic plan to reduce the gap of wealth and inequality. Since the cost of living is high and inflation affecting the purchasing power of money, it is very important to increase the minimum wage. It is also important to remember this is a very effective way of reducing the income inequity without people needing welfare assistance.
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