Tax Reform Pros And Cons

The Fair Tax Plan is a sales tax proposal to replace the current U.S. income tax structure. It would allow all taxpayers to pay the same amount of tax, whether they are wealthy or poor. The current tax code has over 60,000 pages, which wealthy people can afford to hire someone to find loop holes that will keep them from having to pay taxes; whereas someone poor wouldn’t be able to afford someone to help them find loop holes, causing them to have to pay taxes no matter what. The fair tax plan code is about 132 pages which allows for greater transparency and understanding for both the wealthy and poor, and it would allow everyone to pay the same tax rate on things they buy. Many view this as a negative aspect because sales tax will be increasingly

According to the article, The Bush Tax Cuts Have Had a Disastrous Fiscal Impact, “In the "no Bush tax cuts" alternate universe, our debt-to-GDP ratio would be less than 50 percent this year even after all the other fiscal shocks of the past 10 years.” To me this is an astonishing thing that the US economy could be in much better shape if the Bush Tax Cuts were not created. The tax cut will primarily only benefit the rich because they are paying the majority of the taxes, so if you think that imposing more tax cuts will benefit the economy as a whole then I think you need to listen up and figure out why in fact it does not benefit everybody. I definitely think there are more cons to a tax cut then a tax rise, so let me explain to you all of

In theory, cutting taxes helps the economy by putting more money into the pocket of consumers, which they will then spend. For income of individuals and families, Donald Trump is proposing simplified tax brackets with tax cuts across the board. Whereas the current income tax plan has 7 rates, stretching from 10% to 39.6% (more like 43.4%, due to the net investment income surtax), the President-Elect will pursue income tax rates of only 12, 25, and 33% and capital gains tax rates of 0, 15, and 20%. In addition, Trump has proposed eliminating the net investment income surtax and any Obamacare taxes, making 33% and 20% the true maximums for income and capital gains, respectively. Beyond income tax cuts, businesses will see a massive tax cut under Trump’s proposed policy. Corporations currently pay a 35% tax rate; going forward, all businesses (including income earned by an individual from a corporation) will be taxed at 15%, with most business deductions eliminated, in an effort to reduce the debt dependence of

Recently there has been a significant tax reform, which is tax cuts, claimed by American president Donald Trump, affects both individuals and families. The U.S. Senate has passed the tax reform bill 51 to 49, which is the first amendment to the tax law by the U.S. Congress in approximately 30 years. It is the first major victory Trump has been in power for nearly a year. The heart of the new tax reform aims to reduce the federal income tax rate for individuals and businesses. Firstly, this short paper illustrates the most critical aspects of the new tax reforms (lower rates for individuals, middle class tax cuts, and itemized deductions). Then, the paper explores the most significant changes or influences and the biggest

Taxes are essential for they enable the economy to function more properly. Taxes are useful for funding programs such as, public transportation, education, and health care services, however, taxation on goods and other resources can negatively affect individuals whose socioeconomic status is low. In my opinion, taxation has different effects on different areas of our economy, taxes do affect American citizens as well as the economic policy by raising or lowering the amount of income the government receives.

The federal income tax system is an intricate system and increases its complexity through newly enacted laws and regulations. The tax codes are difficult to decipher; however, it is a system that maintains the development of an entire country. The political aspects serve to focus on major loopholes and develop strategies for improvements. The laws and regulations highly coincide and work cohesively to obtain its objectives. Undoing or restructuring the federal tax system would cause a major disruption on economic and social terms (Prescott, & Hardin, 2013).

Everyday, American citizens are under obligation to pay their taxes in order to be classified as an upstanding citizen; however, the efficiency and fairness of America’s taxation system is a controversial topic which, in truth, places many hard-working Americans at a disadvantage. More often than not, tax reform is volleyed and utilized as a tool in elections rather than being addressed as the problem it is. In addition, the current system places many young people, namely college bound students, in a difficult situation in regard to financial assistance. While efforts toward taxation reform have been made, further progress and transformation are necessary in order to assist in the relief of inequity.

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

It has also argued that growth can also be enhanced, by improving the design of individual taxes.  In some cases, such as the reduction of corporate taxes and the top rate of personal income tax, it is unlikely that these growth-enhancing changes will help the recovery from the current crisis.  At the same time, there are tax changes that appear to be bad for growth, such as reductions in sales taxes (particularly if they take the form of exemptions and reductions) and property taxes that would do little to speed recovery.  The tax change that shows the most promise in terms of both increased growth and economic recovery is the reduction of income taxes of those on low incomes.  This would stimulate demand, increase work incentives and reduce income inequality.  The authors display that the dependence of both growth and tax policy on initial income help explain why it is difficult to isolate the effects of tax policy on growth.

Senate Republicans are pushing for a $1.5 trillion tax cut over the next decade. They claim this tax cut will positively stimulate the U.S. economy and offset the federal deficit with more economic growth. Critics say this will only accelerate the federal deficit. This article says the federal debt passed $20 trillion earlier this month.

Tax reforms have become a major topic for the 2016 presidential candidates. The US taxation system is definitely in need of reformation and it appears that the candidate with the most robust tax principle will ascend to the presidency. Most candidates from both political parties believe that the Internal Revenue Service (IRS) needs to be reformed. To woe voters, some candidates such as Carly Fiorina have even promised to condense the tax code to three pages in order to improve its efficiency and remove the loopholes that have been used by interested parties to push for their selfish desires. Others have proposed to oppose any tax increase with others ascertaining that taxes are essential for economic growth. Principles on tax

The distinctions of these test are important because, in addition to being a tax-saving exemption, “a qualifying child also factors into claims for head of household status, the child tax credit, the child and dependent care credit, the exclusion from income for dependent care benefits and the Earned Income Tax Credit, or EITC” (Bell, 2011). If taxpayers only follow the guidelines of these test, it would have prevented the Protecting Americans from Tax Hikes (PATH) Act of 2015.

Eliminate the Personal Income Tax, the IRS, The [Federal Reserve] and the United Nation from a this Nation.

By examining states across the country that have experienced greater business growth and have decreased unemployment, the cause of the economic growth traces back to reduced marginal tax rates. Likewise, greater investment and productivity comes from lowering tax rates, since returning more money to the US taxpayers encourages their saving and work effort. Lowering taxes also results in perhaps the most important effect, increasing government revenues and reducing the national debt. With America’s increasingly massive national debt and stagnant economy, the need to improve the country’s economic situation grows more important every day. Perhaps when Congress goes to prepare its next budget, it should consider reducing marginal tax rates as a remedy for the nation’s economic

The topic of taxes has become a popular subject in mainstream media nowadays, especially with the 2016 presidential elections looming near. Many candidates have made tax reform part of their platform in debates due to the increase in our national debt, staled or minimalistic increases in employment opportunities, wage increases, and the effect our current tax structure is having on companies to provide these opportunities. Some have stressed that implementing a flat tax will have the most successful impact in increasing tax revenues as well as opening new doors of opportunities for small employers, and for those in the current job market.