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The clang of a cash register closing in the background as a sale comes to a close. There is a huge crowd hovering over multiple bins and items being ripped right off the shelf as the clock hits midnight. People running to grab the sales they want. This sale happens every year after thanksgiving and everyone wants to have more money to buy those extra things that make life bearable, but sadly this is not feasible in today’s economy. This is due to the governments taxes being at an all-time high. Federal taxation is an issue that should be dealt with now. The government should lower federal taxes because if we lower them, people would get increased funds to spend, the federal revenue would be increased, and the national debt would be lowered.
Who doesn’t want more money to spend? With the lowering of federal taxes, there would be an increase to everyone’s check, whether it is social security checks, disability checks, veteran’s checks, or the check at the end of the week that represents all the hard work out in over the previous week. This increase of pay is something everyone desperately needs. Today’s taxes are at an all-time high with a minimum taxation rate of ten percent (U.S 4). With the lowering of taxes, not only would people get increased pay, but this increase of funds would give everyone the sense of relief. This is a relief of not having to struggle like we all have to in today’s economy.
In correlation to giving more funds and the feeling of being relieved, it would increase the federal revenue. As it stands, people do not have much to spend, so people hoard all the money they can for times when it really is needed. If the taxes are lowered, people will feel safer and would be more willing to spend more, the...
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...axes are filed. Also, there would only be a little bit to be put back into the peoples pay checks by lowering the taxes. It can be disputed that the amount would be so little, that it would not be significant at all.
With the federal taxes lowered, everyone gains. We see an increase in pay, which is desperately needed in today’s economy. We see an increase in the federal revenue funds. We see the national debt being lowered. We even see the benefits towards other systems such as the increase of trade and lowered prices in the U.S. in turn giving us more to spend and repeat the cycle. These are the reasons why our taxes should be lowered.
Works Cited
“U.S. Tax Base.” Issues and Controversies. Facts On file News Services, 1 Oct. 2012. Web. 2 Dec. 2013
“Taxation and Tax Reform.” Issues and Controversies. Facts On File News Services, 28 Jan. 2013. Web. 2 Dec. 2013
Many debates have been waged over the decades on what will be taxed, on who shall be taxed and how taxes are collected. Since the 16th Amendment was ratified in 1913, the debate has intensified, centering on how high to make the income tax rate. Most Americans were not concerned since the Amendment was sold to them as something that would only affect corporations and the rich. With ever increasing fervor these corporations created lobbyists to convince Congress to exempt them from some or all of the income tax. The big breakthrough in this was taxing the worker directly with payroll taxes during World War II. This method of collecting income tax was sold to Americans as temporary, but Congress has extended it indefinitely and the public has become used to it. The next few decades saw the debate revolve around creating tax breaks for individuals in an attempt to modify behavior or spending. This has resulted in over 67,000 pages of tax code and an entire industry devoted to tax compliance and evasion, with the unintended behavioral change of corporations and the rich parking their money outside of the United States in small island nations to avoid taxation. These offshore accounts are estimated to hold $10 trillion dollars, a number approximate to the national debt. The FairTax Act should be enacted because it eliminates all federal income taxes for individuals and corporations, eliminates all federal payroll withholding taxes, abolishes estate and capital gains taxes and repeals the 16th Amendment; thus eliminating the need for offshore accounts.
Our current system of taxation is a varied rate percentage based on different income brackets. Many say that it violates our constitutional rights through unequal taxation. Multiple deductions, loopholes, special rates, and a complex system of regulations all characterize our Federal Income Tax System, prompting many to question why it is still being used (Peters, 2013). The current system although bringing in over $3 trillion, taxes income multiple times, and includes the taxing of estate, labor, savings, and investments (National Priorities Project, 2013). The system itself is complex with over 20,000 pages of regulations, requiring a massive filing system, which is set up and maintained by an even larger IRS, requiring over $225 billion in compliance costs (Hall, 2001). One can be hard pressed to find an advantage in the current system, other than the fact that it provides the government with an enormous amount of funds, and it has...
I. You might have heard politicians in the news, talk about overhauling our tax system with a new fix-all idea, the flat-tax. This would simplify our overly complicated tax system and might seem appealing at first glance, however there are serious problems with it.
Many ponder the idea of federal taxes and whether the wealthy deserve to pay a higher percentage rate of their overall income. That is, they argue that because our society needs more equality and a lower national budget deficit, taxes on the rich must be raised. This specific topic has been discussed for decades, and due to the severely different perspectives, it is unclear whether the two sides will ever come to an agreement. President Barack Obama and much of the Democratic Party strongly lean towards raising taxes on the rich, while the conservatives and the Republican Party heavily lean towards a more balanced flat tax. However, after extensive research and focus on what would be best for the equality of individuals, the nation and its economy, this paper will firmly prove that the top one percent should not be taxed any more than they are today.
Money, I bet I have your attention now? Hard working Americans are consistently held down due to taxes. There are many unnecessary taxes that are taken from each individual every single year. The 15% sales tax concept eliminates the frustration and confusion of the different kinds of taxes, and creates more money for the federal government. This concept has been overlooked year after year since its conception. This is a 15% sales tax; a tax that takes 15% of all goods sold and gives it to our government. Be aware of the fact that it is now 7.75%; a lot of you may say, "7.75% is way too much already". The answer to that question is no, no it is not. That 15% sales tax goes directly to the federal government eliminating all income tax in ones paycheck. Imagine seeing your paycheck without taxes taken out of it. It seems almost unimaginable to me; now we can imagine it.
In 2012 Republican Presidential candidate Mitt Romney and his Vice-President candidate Paul Ryan introduced their idea for the future of the tax system; they called it the “Trickle-Down Effect”. The definition of “Trickle-Down” is ”an economic idea which states that decreasing marginal and capital gains tax rates – especially for corporations, investors and entrepreneurs- can stimulate production in the overall economy. According to trickle-down theory proponents, this stimulus leads to economic growth and creation that benefits everyone, not just those who pay lower tax rates”(“investopedia”). Essentially, keeping the Bush Era tax breaks in place and even broadening them in certain aspects, to promote growth throughout the business sector. They believed that by lowering taxes all across the board it would give companies an incentive to hire new employees and create new jobs. This sounds like a fairly good idea, give empl...
For the past eleven years, opponents from the left and right side of the political spectrum have lambasted the FairTax. Politicians who don’t want to relinquish the power given them by the current tax system are the proposal’s biggest opposition. They don’t want to give up the withholding system. They don’t want to give up the sixteenth amendment. They don’t want to lower taxes. They oppose the FairTax for the sake of their own greed and agendas. Despite all their baseless criticism, the FairTax is continuing to gain support on the grass roots and political levels. The statistical data and scientific analysis, compiled over the last eleven years, is overwhelming proof of the FairTax’s ability to bring transparency to the tax system, broaden the tax base and to fix the U.S. economy.
Introduction Taxes; who benefits and who gets ripped off focuses mostly on Federal and county taxes and not on state taxes. This report aims to give the reader some insight on taxes: Why we have them, what types of benefits they supply, who benefits from them, and who gets screwed by them. It informs the reader of the different types of taxation, where the money comes from and where it goes. How can people avoid some tax increases? But most of all, this report informs the reader that there is an incredible amount of money being wasted by the federal government through overspending and irresponsible behavior of government departments. This overspending has created a deficit that has caused billions of dollars in damage to the credit of the country. As a result of these excess taxes, the American taxpayer is getting ripped off by paying for waste in government. Most people in this country are being ripped off in the amount of taxes they pay due to corruption gover...
The United States tax system is in complete disarray. Republicans and Democrats agree that the current tax code is complex, unfair, and costly. The income tax system is so complex; the IRS publishes 480 tax forms and 280 forms to explain the 480 forms (Armey 1). The main reason the tax system is so complex is because of the special preferences such as deductions and tax credits. Complexity in the current tax system forces Americans to spend 5.4 billion hours complying with the tax code, which is more time than it takes to manufacture every car, truck and van produced in the United States (Armey 1). Time is not the only thing that is lost with the current tax system; Americans also lose great deal of money complying with the tax code. Resources that are currently wasted on record keeping, filing forms, learning the tax code, litigation, and tax avoidance. The cost of complying with the current tax code totals about $200 billion annually, or $700 for every man, woman, and child in America (Armey 1). The overwhelming consensus that the current tax system is inadequate has ignited the search for tax reform. There are numerous proposals for tax reform; one particular proposal brought forth by various conservatives is the idea of national flat rate income tax. The idea is to replace the current income tax with a single rate that everyone pays.
While most taxpayers agree that tax reform is necessary for our country the problem they encounter is the difficulty they experience when trying to understand all the political terms used when discussing tax reform. This paper is an attempt to help the taxpayers of our country to better understand the political terminology and gain knowledge about some of the proposals that have been explored.
Raising taxes on the top two percent of Americans will have a reverse effect on fighting inflation. They’ll move out of taxable income and depend on lower taxed sources of wealth which in return will slow down demand and create a slower economy. Inflation will continue creating stagflation. The wealthy will eventually move down tax brackets resulting in a larger middle class. Doing so will decrease optimism and the drive for success among Americans and the dream for a better l...
Because all economic brackets are taxed equally under a flat tax, earning more money is no longer discouraged. Because there are no more marginal tax rates, people will have incentive to work more without worrying that the extra money they make will be taxed higher. It is said that the economy would grow by 5.
Tax money helps to ensure the roads you travel on are safe and well-maintained. Taxes fund public libraries and parks. Taxes are also used to fund many types of government programs that help the poor and less fortunate, as well as many schools (Wonderopolis, 2016).
The four types of taxes this paper will discuss are income tax, sales tax, property tax, and user fees. Income tax was not permanently established until the 16th Amendment was passed in 1913. Most federal taxes had been previously derived from excise taxes on tobacco and alcohol and other consumer goods. The US Constitution, when written and still continues to, legitimize taxation in the United States through Article I, Section 8, that Congress has the power to lay and collect taxes, duties et al, pay the debts or provide for the common defense and general welfare of the United States (Cornell Law LII). Investopedia defines income tax as ‘a tax government(s) impose on financial income generated by all entities within their jurisdictions (Investopedia, 2014). Businesses and individuals are required to file an income tax return every year to determine if they owe taxes or qualify for a refund. That is determined by measuring the total income one earns to a designated tax rate, calculating one’s taxable income, which are some or all items of income reduced by other adjustments or expenses in that tax year. There are different subcategories of income tax; there is a federal income tax that is set by the federal government, apart from a few states, there is a state income tax that is imposed on their respective residents, as well as the possibility of there being local income tax ...
...the recipients of these tax cuts may not spend the money. The tax cut may though increase the wealth of recipients but they may not spend money due to low marginal propensity to consume. The recipient of the tax cut may decide to save the extra amount of money rather than spending it. Without the expenditure there will be no income generated so this may not simulate the growth of entire economy.