Assignment 2: Discussion Questions

However, there are also some drawbacks associated with raising taxes. Tax is a form of leakage from the circular flow of income leading to negative multiplier effect. If the government increases income tax rates, it might create disincentives to work. It is because when income tax increases, the opportunity cost for leisure time decreases; and people will have to work longer

Another idea would be to avoid increasing the tax rates as this will help “minimize economic distortions that shrink the level of production” (Baker III, 2009, p. 1). To promote economic growth, our team recommends that we take the approach of increasing the corporate tax base and decreasing the corporate tax rates. Other suggestion is to reduce the deductibility of state and local taxes. Other reforms that could be looked

Heated debates over tax cut have always been one of the central economic themes on the American political table. Since taxes relate directly to the quality of lives, it is by no means surprising to find people showing significant concern about policies regarding cutting or raising the amount they have to pay. The idea that lowering tax rate makes room for growth has remained generally popular among the majority, taking a possible decrease in individuals’ tax burden and increase in productivity into account. There is, however, extensive research conducted on the topic that produced controversial results. Despite its appeal to instant benefits for one’s saving account and investment, reducing tax rate has yet to show a definite positive effect

Tax decreases can stimulate economic growth because if people are paying less in taxes, they have more money to spend. It has been proven over the years that tax decreases generate economic growth and federal revenue will always rise. From a personal standpoint I always spend more during tax season because I usually get a good return; since I am a single parent and full-time student, therefore, I qualify for various tax breaks. These obviously affect my household because I am more disposable income. Tax decreases can help a business if their taxes are decreased the organization will payout less and have more income.

Clearly, this money would have to come out of public funds. If the taxes were raised, it would lead to financial difficulties for some families. If the money were to be taken out of other programs, such as healthcare or infrastructure. These programs would not be anywhere near as helpful as they were before and without these programs, it can be a big problem if any of these programs are not

As a person I personally do not mind paying more taxes as long as it actually went to people who are in need of assistance. I understand that there are people in our society struggling and I believe they should have access to programs that could help the better themselves. The system in which people are picked for the program is flawed because it can easily be tricked which is how people who do not need the assistance can get in the programs.

In 2000, federal spending was at 18.2%; in 2007, federal spending was at 19.6%; but in three years since 2089, federal spending reached to 24.4% (Morong). With the economy, the government feels obligated to spend money to prove to America that the government is doing everything they can to help the people and the economy. However with all the spending, the money is being invested towards unnecessary things that are not really needed. So much of the federal taxes are heading towards social security retirement benefits and Medicare insurance which is ruling out the education and other programs for every citizen (Sullivan). Increasing taxes will only leave extra money for the government to spend on unnecessary programs and benefits.

Clearly regressive and proportional taxes present a growing problem in regard to rising poverty rates in the United States.

Main Point; The US is already in a state of poverty and with the people that have trouble with taxes and now that we added this it is going to be almost impossible for some people to live in this economy with this tax problem. Secondary points; taxes are just to expensive that 's why we need to get rid of foreign aid.

Raising taxes would help the people,the fact this is true because taxes go into military, medicare, social security, schools and other things. Not only would it help but its giving the government more money to waste considering they already do. Why would someone give money to someone else who would use the money for unnecessary things instead of using for to better themselves or the people around them. That is basically what the government is doing.

An income tax is not only costly in the amount of time and money it takes to file the paperwork correctly but, it also stunts economic growth as “income taxes are levied on work, savings, and investments. In essence, the government grows by taking money from what makes the economy grow” (Bedard 2010). A consumption tax on spending for goods and services that does not unduly burden the poor nor penalize savings and investments would be a sensible upgrade for the tax policy currently in place. Initially, this essay will discuss issues within the current income and corporate tax codes. The essay will then shift to reforms of the

Taxes are an inevitable necessary part of life. While most of us become stressed out and suffer financially from taxes, it is a known fact that we enjoy many of the benefits of the process of taxation. To look at it from a positive point of view, we must remember a few important parts of our lives that are made possible from taxes. These include new highway construction and repairs, the building and maintenance of public parks and facilities, our law enforcement agencies, emergency services, and much of the health care system; all courtesy of taxes. This assignment will discuss the government’s need to raise and lower taxes and the outcome it has on the GDP and net personal income and other key factors that play part in the

reduction in taxes for businesses. What corporation tax cuts will result in is less money spent on tax,

15. The best way to make sure we pay fewer taxes is to elect conservatives. We must not have elected enough conservatives, because we are paying more taxes.

Every walk of life has to face the music of taxation at one level or another. Taxes are used for many reasons such as stimulating the economy to governing spending. According to Johnson (2005) tax