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Should We Raise Taxes?

Powerful Essays
We've all experienced it. You get your first job and your first paycheck, but wait, what's that—you just lost a piece of your hard earned money to taxes. Hated by nearly everyone, taxes have been around for thousands of years because they are core to a government for providing services to the people. The government, whether it be local, state, or federal, collect taxes to spend on the public for things such as national defense, health care, infrastructure, etc.. With the income, payroll, and corporate taxes collected the government is able to take on these large projects that others would not be able to handle. Though it may sound good on paper there is a problem with how the money is spent. With the government spending more than they are receiving such recklessness have resulted in the accumulation of a $17.5 trillion debt and counting (usdebtclock.org). With this in mind, how can the government provide more services to the people while avoiding a disaster?
According to Adkins, this debt affects us in many ways. First, as debt increases the treasury securities (debt that is sold to buyers in exchange for interest and principal in the future) must increase how much is paid back and then some. This will lead to less revenue as more money is spent to pay the interest. Second, treasure securities which are seen as low risk, low reward investments become riskier as corporations will have to increase prices for their goods and services to help meet the increased interest from treasury securities leading to a inflation because money won't go as far. Third, resulting from the first effect, the cost to borrow money to purchase a home will also raise, as the lending market is "directly tied to the short-term interest rates set by the Fe...

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... that we can stop adding to the national debt. To increase the revenue, tax increases, although very unpopular to Americans and not likely to be presented due to politics, can be a detriment if taken too far. Lowering taxes seems to be what every politician promises even though they are aware of the problem that may arise as a result. Balancing the budget is important but people tend to grimace when certain cutbacks need to be made. Reducing the debt issue would put us in a better position for more public services but by spending more than what is received the debt will only continue to climb, ultimately putting us in danger should the debt become too overwhelming. If we could just reallocate the funds to more a favorable category such as education we can being to really fix our problems and improve our nation. Who would've thought, children really are our future.
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