Should The United States Raise Taxes In America

This idea of reducing taxes to increase investment within the economy sounds like a good idea but hasn’t lived up to its expectations historically. The idea of supply side economics wasn’t a new idea for the American tax code. During the early 1920s, income tax rates were cut multiple times which averaged to a total of most rates being cut by a little less than half. The Mellon Tax Cuts named after Treasury Secretary Andrew Mellon under Presidents Warren Harding and Calvin Coolidge. He believed that changes in income tax rates causes individuals to change their behavior and practices. As taxes rise, tax payers attempt to reduce taxable income by either working less, retiring earlier, reducing business expansions, restructure companies or spending more money on accountants to find tax loopholes. If executed properly tax cuts can actually benefit economic growth, data from the Internal Revenue Service(IRS) showed that the across-the-board tax cuts in the early 1920s resulted in greater tax payments and larger tax share paid by those in the higher incomes. As the marginal tax rate on the highest income earners were cut from 60 percent or more to just 25 percent, the amount that this tax group payed soared from around 300 million to 700 million per year. (See Figure 2) This sudden massive increase in revenue allowed the U.S. economy to rapidly expand during the mid and late 20s. Between 1920 to 1929, real gross national product grew at an annual average rate of 4.7 percent and

The current tax policy in the United States is very confusing and it is very costly for our government to administer it. It is in the best interest of our country and its citizens to revise or replace our current tax policy.

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

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

Cutting down individual taxes will generate more employment and will help generate more money, it will create more tax revenue, according to Mike DeBones, from “House Passes 2018 Budget, Taking a Crucial Step toward Tax Overhaul.” He states that “Our budget specifically paves the way for pro-growth tax reform that will reduce taxes for middle-class Americans and free up American businesses to grow and hire,” House Budget Committee Chairman Diane Black (R-Tenn.) said during floor debate Wednesday. I agree if the tax is

Some say that the taxes could be good for us but if you ask those people why, they have absolutely no answer. Looks like they are just trying to defend their king. The taxes that they make us pay, in my opinion are way too high. We have to do

Zakaria tells us about South Korea’s plan to invest in renewable energy projects and how America can “...pay for this with a 5% national sales tax…” before he states at the end of this passage, “ All the proceeds from the tax should be focused on future generations, because we need to invest massively in growth” (Zakaria 466). As of right now, there is talk within the society of America about raising taxes, using

The topic on whether the minimum wage should be increased our untouched has been a hot topic in the media and political scene lately. Both the republicans and democrats have spent some big bucks lobbying their insights on the matter. There has been a lot of subjective and objective arguments that are reasonable on both the pros and cons of increasing our national minimum wage. To add to the drama associated with this topic, President Obama endorsed a bill proposing a nearly 40% rise from $7.25 to $10.10 per hour. The President has been campaigning around the country ever since his State of the Union address, pushing congress to raise the minimum wage to $10.10 an hour. Many say this is too high due to the costs of enacting such an increase, and many say this is a little low due to the increased cost of living. After looking into both sides of this debate, I realize that overall it would be better for the well-being of our nation to increase the minimum wage due to the short term and long term costs that an increase of the minimum wage could lead to. In terms of helping out the lower class and poor citizens of the United States, increasing the minimum wage level is not the answer.

Our current income tax system today is very complex, unfair, inhibits saving, investment and job creation, imposes a heavy burden on families, and weakens the integrity of the democratic process. It can't be fixed and must be replaced. The U.S. income tax code is a long and complex system. The income tax system is so complex; the IRS publishes 480 tax forms and 280 forms to explain the 480 forms. The IRS sends out eight billion pages of forms and instructions each year. The administrative costs of the tax system far exceed those borne directly by the IRS. Each year Americans devote 5.4 billion hours complying with the tax code, which is more time than it takes to build every car, truck, and van produced in the U.S.

The wealthy should pay more taxes because the government isn’t gathering enough tax dollars to afford everything the people need, the rich can pay back taxes at the end of the fiscal year, and it is patriotic for the wealthy to pay more taxes. Stephen B. Young in “Should the Wealthy Pay More Taxes” states that we don’t have anyone else to tax but the rich. The poor and middleclass can not contribute enough to help the economy grow (Young). We simply aren’t taxing the rich enough. They must pay more.

"A revolutionary change in our tax system is fundamental to re-energizing the American economy and restoring the American dream" (Moore 1). Currently, there are two major plans being considered to try and fix the tax system in the United States. These two plans are the Flat Tax and the National Retail Sales Tax. "Both the Flat Tax and a National Sales Tax would replace today's discriminatory tax structure with a single low rate. Either plan would promote the kind of capital formation that America needs to boost workers' incomes and raise long-term economic growth" (Mitchell 1). This means that the flat tax would take away the savings from the government and pass them on to the citizens and businesses. By doing this, there would be a rise in long-term economic growth.

I do understand that it has happened in the past from President Bush. He sought it out as a great idea even though he stated that it in fact was not his idea, but of the works of his economic group that assisted him in anything dealing with the US economy. I have not seen many benefits coming from it besides the fact that it has helped out primarily the upper class, even though it was intended for the middle class. The US consumers do not know how to save anymore and want to buy, buy, buy, which is a downfall on the overall economy. Even though we have reduced the taxes to allow the US people to spend their money wisely such as putting it into saving, they have done just the opposite. I think personally the only way to overcome the condition that the economy is now in is to in fact raise taxes. It will allow for the government to pay off its debt, not right away, but eventually. It needs to be spread out through the whole entire board and not just a certain class. I know it would take a lot of convincing to a lot of people in order to raise taxes. Who really wants to spend extra money? No one. That is sadly the only way to go through this situation. If the “great leaders” in America keep thinking that tax cuts will benefit the whole economy, then what happened with Bush will keep happening. People will still not save their money, the rich will still be the only beneficiary of the tax cuts, and the debt will still continue to increase in America. There are definitely many implications to think of when someone wants to have a tax

In my opinion, raising the taxes to an unnecessary amount fueled the fight for independence, making it the strongest justification for independence. My reasons for justifying this are at the people's level, not at the intelligentsia level. First and foremost, to gain independence you must have the support of the people. These people will fight for your cause, without them, you will lose. So, raising taxes was something everyone could relate too, and it angered the majority of the people in the colonies. This anger fueled their will to fight against a powerful nation such as England. For example, the founding fathers couldn’t use; the king dispels his Representative House at will if they disagree with him. The majority of people can’t

The United States economy, as known by all, is not in its best shape. One way in which the government gains money is by imposing taxes on people. There are many taxes that are placed on different things that everyone needs or already has. The United States uses a taxation system which is criticized by many. The system used in Progressive Tax; however, many people believe the system of Flat Tax, or Proportional Tax, should be the system that is used for taxing.

The amount of tax levied on the citizens mainly determines the growth rate of a country. Lower tax collection from the citizens will ensure that the growth rate will be decreased. An illustration is a country such as Denmark, which keeps its taxes high hence increasing the growth of its economy. Massive tax cuts, on the other hand, does not result in economic growth.