Pros And Cons Of US Tax Policy

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The US tax policy has created controversy among the presidential candidates vying for the 2016 elections. Democrats consider the current tax code as the basis of the conflict over income inequality. In the perspective of the democrats, the best way to tackle the issue is to reform the tax code in order to compel the wealthy to pay more. Accordingly, this will ease the tax burden on those who earn less. The republicans on the other side believe that tax cuts should be administered to all, irrespective of their earning capability. The republicans thus believe that the best way to ensure that the economy thrives is to tax everybody without considering their wealth. Most candidates vying for the 2016 presidential nomination ascertain …show more content…

The presidential candidate has been condemning the Johnson controls-Tyco merger for tax evasion (Tucker, 2015, p. 67). The company is destined to relocate to Ireland in order to lower its tax liability. Clinton has emphasized that if she were to ascend to power, she would stop this move to ensure that Johnson controls-Tyco merger pays its taxes accordingly. Apparently, the move by Clinton is meant to ensure that the rich continue to pay more taxes to the economy. Clinton, who is fighting with Bernie Sanders for the democratic ticket has often been critical of his fiscal policy (Hendrickson, 2015, p. 3). Bernie Sanders has been reserved in his tax plans and has instead been evasive in his pronouncements. Compared to Bernie, Clinton has been having a more aggressive approach in discussing her tax plan for the …show more content…

Accordingly, Clinton believes that America is not taxing its wealthy sufficiently. She thinks that corporations and wealthy individuals need to pay a fair share to the government through taxation. In Clinton’s proposal, taxing the fortunate members of the society would raise about $150 billion in ten years (Tucker, 2015, p. 107). This plan will affect only 2 people in every 10,000 taxpayers. This plan seems attractive considering that it is targeting the wealthiest people, and is not aimed at the middle class. If Clinton’s proposal can be implemented, the rich will be taxed more than they are being taxed by the Obama administration. Clinton’s plan is hinged on the so called, ‘Buffet rule’, which envisages the raising of taxes to 30% on all US citizens who are earning more than $ 1 million (Klein, 2015, p. 26). With the new tax plans, Clinton expects to be the president of the successful, the struggling, and the striving. Apparently, the ‘buffet rule’ is named after Warren Buffet, a renowned investor who is an avid supporter of Hillary Clinton (Lee, 2015, p. 6). Considering that Buffet supports the new tax plan targeting the rich, Clinton believes that other wealthy individuals will be supporting the tax

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