Buffet, who has an estimated fortune of $58.8 billion dollars winces at the fact that he pays less taxes than some of his office workers (Forbes). Not only does this concept seem absurd but it’s just plain wrong. Yet, many economists argue that by raising taxes for the wealthiest Americans in the nation, will not help our government stable our wailing economic crisis. They argue that since the percentage of individuals who are considered wealthy is only one percent, raising their taxes will not help to close the deficit in our economy. According to the literature raising taxes for the wealthiest one percent of Americans does increase the revenue and enables legislatures to be able to fund existing programs that are at risk of being cut; in addition, with the new revenue legislatures are able to create new programs that benefit low income citizens.
However, equality of opportunity does not equal equality of outcomes. People are having more opportunities to find a better job, but their incomes are a lot less compared to the top ten percent rich people. In this way, the poor people will never climb up the ladder to high status and become millionaires. Therefore, the government needs to increase all the tax rates on rich people in order to reduce income inequality. 1.
Depending on inflation, sometimes the United States has the largest capital gains tax rate in the world. In a competitive global economy a zero percent capital gains tax rate would make the United States a haven for capital, which in the long run will spark economic growth in the United States. Eliminating the capital gains tax altogether would not only promote a "boom" economy in the United States but will give the United States an edge that it needs to compete in the global world, not to mention create new jobs. The potential benefits for eliminating the capital gains tax are clear.
Ben Carson also has an interesting view on taxes, he believes “Everybody should pay a proportion of what they make” (4th Republican Debate). In minimizing the deductions it would eliminate the loopholes that large corporations try to use. Often times the larger companies do not end up paying taxes at all, but they are the companies that make the most profit so why should they not pay taxes like the rest of America? In requiring the companies to pay taxes it would help with the national debt. Carson believes “The government is not supposed to be in every part of our lives, and that is what us causing the problems” (3rd Republican
This plan will most definitely not be popular with the rich, but there is no way to satisfy everyone completely and this is what I believe is the best compromise. The tax hikes need to be looked at in the bigger picture rather than the immediate future. The taxes are something that are for the greater good and I believe will help us as a country in the long run. The hikes will be done over a twenty year span and will increase
One of the most important issues rarely mentioned is the gap between rich and poor in America. The issue with this not being a hotter topic is that the gap is been growing. That is the conclusion that Bartels’ comes to in Unequal Democracy. In the book, one of Bartels’ points is that there is a biased pattern to the size of the gap between the rich and the poor. He concludes that over the past half-century, Republican presidents have allowed income inequality to expand, while Democratic presidents generally have not.
Because in the United States, the top one percent earner’s income totaled 21% of the entire country’s pre-tax income (Piketty), I decided that America’s top earners would have to suffer the lion’s share of tax increases. I attribute this decision to the fact that many lower and middle class workers struggle to make a living, while upper class earners with much more disposable income do not have much higher tax rates. Corporations, many of which utilize tax credits and loopholes to pay very little in tax, are also looked at, as tax increases for corporations do not directly translate into lower wages for workers. I also kept an eye on the future, funding programs that would help future generations prosper, as the long term consequences of decisions have the greatest impact. I expected to be able to cut quite a bit from the budget, but feared that I would fund too many social programs and therefore not save enough money.
In addition, the bill is not an effective solution to the high unemployment rates, unaffordable school fees, and property tax issues, which it is intended for. For that reason, the New York governor should veto the bill. The gambling bill, if passed into law, is going to cause more problems than benefits; firstly, the law is meant to benefit wealthy politicians as opposed to the common citizens of the New York State. The politicians in the region support the bill because it will provide them with short-term fiscal benefits, as it will make the rich wealthier at the expense of the underprivileged people who engage in gambling (Hawkins, 2013). Unfortunately, the profits obtained from gambling businesses come from poor citizens who cannot afford it; as a result, some of them end up using the money they get from the state (Rubin, 2013).
The gap between the rich and poor that has continuously increased throughout the decades makes it even more challenging for an individual to jump from the poor class to the rich. The rich, receiving large tax breaks, stay rich. This leaves the Americans in the poor class to carry the burden of the heavier taxes, leaving them in the same class with little to no hope of becoming rich and obtaining the American dream. In addition, delaying and denying citizenship to immigrants hinders their ability to obtain wealth and the American dream. Low wages also decreases the ability for many Americans to gain a higher education, decreasing the likelihood they will receive high wages and the American dream.
It's this idea that fueled the American Dream Capitalism was motivated in the 20s by the Republican government. They believed in non-interference or "laissez faire", the policy of letting businesses regulate themselves and to have any caps in how far or how much they go. The government thought that businessmen could work best in a climate made by themselves, not coordinated by the government. Americans believed in rugged individualism, the fact that anyone could make a fortune if they put in enough hard graft. Republicans helped American capitalism prospering by introducing tariff barriers, making it that all goods coming from abroad had to taxed heavily before entering the country, meaning that prices in the USA for those products raised so the foreign companies could still make a profit.