Taxes: What Will Lowering Them Do?

639 Words2 Pages
bulb-icon

Recommended: An essay on fiscal policy

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...

... middle of paper ...

...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

Show More
Related

  • Questions of Tax Reformation

    759 Words  | 2 Pages

    Whether or not to keep or discard the Bush era tax cuts for the wealthy, give tax breaks to the lowest tax bracket, and even throwing out the entire current tax code and replacing it with a simpler version, tax code and tax law has been a very controversial topic for the past few years. As it stands, the current tax code has over seventy two thousand pages, compared to the four hundred pages it had in 1913. There are many different stakeholders in this debate including taxpayers, corporations, businesses, etc. Americans for Tax Reform (ATR) is an organization that was “founded in 1985 by Grover Norquist at the request of President Reagan”(.N.p.). Their goal is to create and advocate for a simple flat tax,“...on the belief that they will provide a strong stimulus to investment, employment, and output” (Stokey 1). They promote their organization and represent taxpayers in all fifty states. Along with tax reform, ATR also advocates for individual health care, free trade, and spending transparency (.N.p.). Using very simple and easy to understand images, ATR is able to convey their goals and get information across to the general audience that visits their website.

    Read More

  • The Economic Policies of President Eisenhower

    1903 Words  | 4 Pages

    While this would normally pose a problem to the federal budget, it will not due to current conditions. The amount of money formerly spent on national security, meaning military and defense spending has been severely reduced (Albertson, 139). This frees up a large amount of money to be used for other goals. These goals should be those of improving the standard of living for each and every American and not the immediate reduction of taxes, a goal which many members of the Republican party would like to see pursued. The programs initiated under the policies of the New Deal and Fair Deal should not simply be maintained, instead they should be expanded upon.

    Read More

  • The Pros And Cons Of The Fairtax Act

    1563 Words  | 4 Pages

    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.

    Read More

  • America's Tax System: Flat or Fair?

    672 Words  | 2 Pages

    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...

    Read More

  • Tax Reformation Common Ground

    1090 Words  | 3 Pages

    The tax policy in the United States is very confusing. When the tax policy was originally written in 1913 it was four hundred pages. Now, over the past ninety one years, that tax policy has evolved to over 72,000 pages. Since the tax code has become so lengthy and nearly impossible to understand, the topic of tax reform has been in the minds of many. Although, most barely think about tax reform until tax season. It is a controversial subject due to the impact a change in tax code would have on the American people. The two most popular and widely known stakeholders in this debate are the two major political parties in the United States, the Democrats and the Republicans. The two parties share absolutely no common ground on the subject of tax reform, other than thinking the other parties solution is wrong. The Democrats, in general, want to raise taxes on the wealthy, while Republicans, generally, want to cut taxes for everyone (Democratic Party) (GOP). Unfortunately, with the United States economy currently doing so poorly, the parties can no longer afford to remain at a standstill, some sort of compromise is going to have to be made. The implementation of a flat tax, and discarding the current tax system would be a compromise that both parties can agree on and will simplify the tax code, overall benefiting all Americans.

    Read More

  • Persuasive Speech On Flat Tax

    1141 Words  | 3 Pages

    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.

    Read More

  • How Does Taxation Affect The Poor

    795 Words  | 2 Pages

    One person may see that the increase taxation on the poor and the decrease taxes on the wealthy is not an issue because the wealthy pay a lot of taxes already. However, many people don’t realize the fact that, yes, the wealthy are paying a lot of taxes because they make more money, but they can afford to pay more. Recently, in a CNN article, more than forty millionaires want their taxes to increase, which proves the fact that the wealthy have plenty of money to give back to the community. In addition, their just going to keep getting wealthier and wealthier by the

    Read More

  • The Flat Tax

    482 Words  | 1 Pages

    Taxation has always been a major controversy. Just like any major corporation, the government is constantly looking to raise revenue. The easiest and fairest way to do this is by taxing the people. However, how the people will be taxed is always an issue.

    Read More

  • The Public-Private Prison Debate

    2337 Words  | 5 Pages

    Williams, R. (2009, April 22). The Numbers: What are the federal government's sources of revenue? Tax Policy Center. Retrieved from http://www.taxpolicycenter.org/briefing-book/background/numbers/revenue.cfm

    Read More

  • The Importance Of Community College Education?

    1175 Words  | 3 Pages

    An increase in taxes specifically designed to fund school would erase many of the problems the community college system and K-12 system faces. The state’s low income population would greatly benefit from this as they will then be able to afford a proper education. A few cents or dollars from tax payers to a great cause like education would also help stimulate the economy. The educational system needs more money, “favorable state economic conditions such as low unemployment rates and high gross state product, for example, have been found to be associated with increased higher education spending” (Ness 337). Budget deficits will only hurt the economy as higher ranking jobs will not be available and students without a college education will be force to compete for minimum wage jobs. Since the state refuses to raise government taxes it has left the state in a position where the only option is to make cuts in certain necessary programs to balance the

    Read More

  • Laissez-faire vs Government Intervention

    1571 Words  | 4 Pages

    The use of taxes is one of the government's favorite ways to make its presence known in the economy. While this method seems blatantly obvious, many of the ways the government uses the money collected by taxation is not. Some of the money it takes is used to fund other programs designed to "protect" consumers and to "create" jobs. Be...

    Read More

  • The Four Types of Taxes

    1538 Words  | 4 Pages

    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 ...

    Read More

  • Government Spending versus Tax Cuts: How Best to Stimulate Growth?

    1470 Words  | 3 Pages

    In our opinion government spending is better than tax cuts. Government spending increases the employment as well as the income of the people of the country, though tax cut only increases the wealth of the people who may not spend the extra money earned and help in the growth of the economy.

    Read More

  • Canon of Taxation by Adams Smith

    2064 Words  | 5 Pages

    Tax Base can be referred to as the object that is charged. For instance, the tax base for income tax is the taxable income.

    Read More

  • Role Of Economics In Personal Finance

    735 Words  | 2 Pages

    The government use of taxes plays a crucial role in today’s economy as well as personal finances, it has and will continue to leave its mark on the world we live in.

    Read More

More about Taxes: What Will Lowering Them Do?

Open Document