Essay On Tax Increase In America

Answer: If there is a difference in the spending of government and the in income will lead to the deficits. More over deficits occurs when the amount of government total budget exceeds its total receipt for a fiscal year was said by US senate budget committee. From the US debit clock, largest budget items list are medical, social security, defense/war, income security, net interest on debt, federal pensions. As we can see that the largest budget items every item has its own importance for Medicare the budget is $949 billions, social security is $872 billions, defense is $591 billion, income security is $310 billions, net interest on debt is $245 billion, and federal pensions is $253 billion. A cut back in the spending of the government is not an easy task because which lead to so many issues. Every items has got his own importance consider defense which is a national importance, medical which is health importance, likewise every items has got their own importance. I would recommend cut back on income security in which the budget is allotted to maintain forester care, earned income credit, unemployment compensation, nutrition assistance, family support, making work pay this is meant for the citizens of the social welfare.

To balance the budget, the government should increase taxes and decrease expenditures to fight inflation.

As we discussed and read about this week in our class, the topic of the US Budget and how, why and what should we do about it has become a topic with many views and opinions. The United States of America currently holds over 16 Trillion dollars in debt based on our governments spending practices for the last ten years. Two wars, numerous fiscal collapses and cliffs, a bubble popped housing market, looming medical care costs from a socialized healthcare law and a recession have caused the government to acquire enormous amounts of debt. This debt with caused by what seems to be from irresponsible spending on both the Legislative and the Executive Branches have done nothing to lessen this deficit. One idea that has been discussed not only in

3). Trump further pointed out that large fractions of the US annual budgets are set aside to finance the international economic obligations of the country. As such, the Republicans pointed out that cutting such parts of the budget would help to boost the American economy and to reduce budget deficits.

If our government didn’t spend anything would we have any type increase in our economy? I do not thing we would. Who would pay for the necessity things we need in order to thrive as a country. How would we keep up with our transportation system, invest in our future or keep us from totalitarianism? We have to have some type involvement from the government. I the 2016 election outcome came due to the fact that a lot of people felt like President Obama and his administration implicated too many policies that increase government spending. Such policies geared towards health care reform and income inequality. All in which increased taxes for each individual. I think a lot of people feel like the last eight years of government spending cost the tax payers a lot of unnecessary money. People were paying taxed for programs they didn’t support or agree with. “In fiscal year 2015, the federal government spent $3.7 trillion, amounting to 21 percent of the nation’s gross domestic product (GDP). Of that $3.7 trillion, over $3.2 trillion was financed by federal revenues. The remaining amount ($438 billion) was financed by borrowing. As the chart below shows, three major areas of spending each make up about one-fifth of the budget” (Center on Budget and Policy Priorities). This article outlines the major areas of spending which are

The Obama Administration alone has added billions in new federal spending and though their aim was to improve the economy, their recessionary spending has done nothing but add to the deficit. In addition to cutting administration spending and enacting spending caps, programs like Medicare, Medicaid, and Social Security, which are responsible for a large dent in the deficit, need to be reformed. While still offering all of these programs, the government needs to find new ways to offer them without putting the country into even more debt on an annual basis; controlling entitlement programs would have a positive effect on the national deficit. Lastly, cutting military expenses and getting troops out of other countries.

Whereas Democrats funded their programs from taxes, the role of the government massively increased during the George W. Bush administration as a result of borrowing as a means of funding programs. The consequence of the Bush administration is a massive increase in the budget deficit and national debt. Jones and Williams stress that cutting taxes has never led to increased tax revenues despite the rhetoric from Republicans and conservatives who say they do.

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.

Due to the dire nature of the current situation, it is improbable to completely avoid tax increases for wealthy families. However, there are scenarios in which the debt is addressed mostly through spending cuts rather than tax increases that negatively affect the wealthy. If the United States were to follow the Bush-era tax plan, the wealthy citizens of America would benefit at the expense of middle and lower classes. Specifically, if the U.S. were to allow the expiration of income below 250,000 dollars a year, 98% of households would no longer benefit from the Bush-era tax cuts. These, in turn, will increase the taxes for households, while excluding the wealthy families of the top 2% of the income distribution. Similarly, if the government were to modify the payroll tax in order to better encapsulate income (90% rather than 80%), the national debt would decrease while sparing those at the top income

seems best for the country would be for the US government to do things such as reform the tax code, reducing other spending, slow the growth of entitlement spending, and help the economic growth.

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.

So they decreased their deficit by $10,000 which sounds great for one year, but they actually still increased their debt by another $15,000. The same thing works for the government. The government has the Gross Domestic Product (“GDP”), which is basically how much money all the new goods and services are worth that everyone in America buys within a given year. The GDP represents the “how much we earn” part. The second part is everything the government spends money on; healthcare, defense, education, welfare, social security, etc. According to President Obama’s State of the Union Address, we are making progress with our debt elimination. He cited that the deficit has dropped from 6.8% of the GDP in 2012 to 3.9% in 2013. Based on my example above, we know that the deficit is not the same as the debt and that the debt continues to get larger every minute of every day. Unfortunately, while the deficit percentage of the GDP did get smaller last year, the debt percentage of the GDP is ridiculously high at 73% according to the Congressional Budget Office (“CBO”); this means that the debt is higher now than any time since after World War II. And while it may reduce for the next few years due to economic growth, the Committee for a Responsible Federal Budget (“CRFB”) predicts that the debt will grow to 79.2% of GDP by 2024 and 100% by 2023. This means that

Many analysts state that “unless appropriate legislative action is taken, the national debt will become unsustainable, growing at a faster rate than the GDP and commanding a growing percentage of government revenues to pay the interest.” (Masters, 2012).

Deficit spending generates the creation of wealth transfers from future taxpayers to future government shareholders. In the near future our children and future generations will have a portion of their personal earned incomes moved through higher tax rates compared to those who carry Treasury notes. Government debt causes our children to loose more rights and freedom. Deficit spending is very underhanded because it causes people o believe they are gaining something for nothing. In actuality, their personal wealth is reduced and gives the illusion that their money was covered by taxation. Information involving the overall cost is not even stated in the tax bill itself. Politicians tend to support deficit spending because it rewards special-interest groups and enlarges the state’s control of its private sector (Gwartney et al. 110). Without proper laws and restraints, legislators will drive up budget deficits and spend funds excessively (Gwartney et al. 110). When the government’s allocation of money exceeds its total revenue, a budget deficit occurs.

The “government spending is taxation” (Laffer & Moore 1). Increasing the budget would send the US government farther into the billions of debt that the government has refuse to pay off. The government has enough problems with money, and by trusting the government with more money would not be a wise decision. “It is clear, now, that a massive stimulus administered was an abject failure. It condemned America to the worst recovery in its history--including the 1930s” (Laffer & Moore 1). The US debt is worse than anyone has ever seen, but yet people still want the government to have money to spend. This would only cause Americans to go further into debt which will not get paid off any time soon.