More than 35% of American adults are obese and as a consequence, are at increased risks for health issues such as heart disease, high blood pressure, and diabetes ("Overweight & Obesity"). The U.S. taxpayer is supplementing much of the cost to treat obesity related health issues through public health programs such as Medicare and Medicaid ("Economic Costs"). A positive externality will occur in the form of decreased health care expenditures on Medicare and Medicaid. The U.S. government should impose an excise tax on soda and other beverages that contain sugar. Consumers who drink excess sugary beverages impose a negative internality on their health; as well as imposing a negative externality on the American
(Black, 565-483) This means that every working family still pays taxes, however their taxes would be cut, meaning they would be paying less taxes than before. As for the “ millionaires” and higher class of society they will still pay the same taxes as they did before. This policy is more likely to be considered as equal because it is not rated fair when people from different social classes with a big difference in their incomes pay the same taxes. Especially because the taxes will eventually be lowered for the lower classes because they would be unable to afford paying the regular and high taxes. This will also lead in the cut of taxes for the high social class, which then makes the whole concept unequal. Not just for the people but also for the national economy (Witcover, 791-545).
BBC: For the longest, Republicans have said the U.S. tax system is in need of repairing and Trump is the one taking the stand on it. He’s called for significant tax cuts which
Today the United States Americans more than ever; there is a constant fear of an awaiting recession due to the economy. The recession in the later 2000’s has been known as the greatest economic decline since the Great Depression. The United States of America, the banks and businesses are not able to succeed and are failing due to the market. Many people across America cannot afford their homes or bills due to the unemployment rate that seems to keep increasing. Many people blame this on the higher oil or gas prices, and the wars that the United States acts on. The recession has overall declined our economic activity in business profits, employment, and investment. This is all due to our falling market, and the rise of prices that so many Americans cannot afford.
Barack Obama’s policies are still in effect and apparently working. The proof is in, government spending cures an economy, just like John Maynard Keynes says. But, are Obama’s policies working? Princeton University Professor Alan S. Binder and Moody Analytics Chief Economist Mark Zandi published “How the Great Recession Was Brought to an End” in July, 2010. They calculated the effectiveness of various parts of President Obama’s American Recovery and Reinvestment Act of 2009 package with a comparison of how much each type of economic policy actually translated into an economic benefit – how much bang did each buck provide. Binder and Moody calculated “The bang for the buck is estimated by the one year $ change in GDP for a given $ reduction in federal tax revenue or increase in spending”.
The debates on tax cuts are making their way to headlines of every radio station, newspaper, and television station in America. Today, tax cuts would only benefit the wealthy and wouldn’t really benefit the lower class. “The administration and it’s congressional alleys are proposing to sharply reduce taxation of the business income primarily benefiting
The recession of 2008 is also called the ‘Great Recession’, said to have begun in December 2007, and took a turn for the worse in September 2008, and it was a severe economic problem expanded globally. This recession affected the world economy, and is said to have been the worst financial disaster since the Great Depression. The decline in the Dow Jones this time was -53.8%. Since the official start of the recession in December 2007, and through June 2010 there have been about 2.3 million homes foreclosed in the United States. In 2012, the state with the most foreclosures in January alone was California, with 51,584 houses being repossessed. Unemployment during this collapse was 8.5%, and continued to increase to about 10% as of 2010. People’s reaction to this recession was a huge decrease in spending and borrowing from banks, but an increase in saving.
There could have been outside elements that could have swayed Bush or Obama into extending the tax cuts but private interests were clearly involved to allow this to continue. Over the past couple of years, the government is faced with shut down because of law of funds and debt but still continue to allow the hyper wealthy and large conglomerates to continue to reap immense profits without paying their fair share.
The 2001 tax cuts were implemented to allow the government to expand its power. Though they did add a tremendous amount onto our national debt, “...around 1.7 trillion deficits between 2001 and 2008.” (cbpp) One provision that the tax cuts included a new income tax rate of 10 percent which was previously 15 percent. Another provision increased the Child Tax Credit from $500 to $1,000 per child, thus allowing more low-income working families eligible for
Americans have been bombarded by new worries in recent days with the war in Libya, unrest in much of the Middle East, and the seemingly endless series of catastrophes in Japan as reported by a recent Gallup poll measuring economic confidence. Added to that, there is a weak job market, increasing fuel prices, and fierce budget battles in Congress, obviously, it is clear the U.S. economy still faces
This may sound like a tax plan that will relieve the financial burden on lower-income taxpayers, directly benefiting the poor, but in actuality, cutting taxes for all in a regressive manner gives substantially more money to the wealthiest taxpayers and a very small amount to lower income taxpayers. According to his plan, a typical American family of four will be able to keep at least $1, 600 more of
…I asked my nominee for chair of the Council of Economic Advisers, Dr. Christina Romer, and the vice president-elect's chief economic adviser, Dr. Jared Bernstein , to conduct a rigorous analysis of this plan and come up with projections of how many jobs it will create—and what kind of jobs they will be… The report confirms that our plan will likely save or create 3 to 4 million jobs… The jobs we create will be in businesses large and small across a wide range of industries. And they'll be the kind of jobs that don't just put people to work in the short term, but position our economy to lead the world in the long-term… The jobs being created by the House bill could cost as much as 2.5 times more than jobs created without the stimulus bill. (Grassley)
This recession has been the biggest economic struggle in my lifetime. Everything that could go wrong went wrong. The event that led to this recession is the housing crisis, where banks were giving out loans, almost without any restrictions. People were getting involved in one of the best economic times in our history. Confidence was everywhere and the ideal mindset hit everyone. When the economy hit all new highs, people thought the supply and demand chain would continuously rise. The business cycle seemed to be a lie to many Americans. However, the business cycle is real and the world lives a part of it everyday. When deregulation became extreme and private companies, especially banks, got all the power, nothing could stop them
One proposal for the lowering of taxes in the United States is Herman Cain’s 999 Plan. Herman Cain is a republican politician running for president in the year 2012. The 999 Plan is a tax reform plan that would change personal income tax, national sales tax, and corporate sales tax all to nine percent. (Astor) The argument for the plan is that it would strengthen the economy and create jobs because it would lower taxes by 26 percent on businesses, therefore giving them incentive to start hiring, therefore creating new jobs for Americans. Currently the United States Unemployment rate is at 9.1 percent. Also corporations would be more willing to bring their profits home due to the lower