The Pros And Cons Of Tax Hikes

How would it feel to receive explicit orders and be expected to execute them flawlessly without any assist? That is the dilemma which local government is confronted with every instance an unfunded mandate is passed. They are laws that “require substantial expenditures by” local government with skimpy funding.

Section 152(a) provides that for a taxpayer to take a dependency exemption, the potential dependent must satisfy either the qualifying child requirement or the qualifying relative requirement. Section 152(b)(2) indicates that the taxpayer is not permitted a dependency exemption for a married dependent if the married individual files a joint return. Pursuant to section 152(c), the term “qualifying child” refers to an individual who has not furnished over one-half of his or her own support and who has not attained the age of 19 or who has not attained the age of 24, if a full-time student, as of the close of such calendar year. The term “qualifying relative” under section 152(d) includes, but is not limited to, an individual whose gross income is less than the exemption amount and to whom the taxpayer provides over-half of the total individual’s support for the calendar year in which such taxable year begins. Under Reg. Sec. 1.152 (a), support received from the taxpayer is compared to the entire amount of support which the potential dependent received from all sources, including support which the individual supplied himself. Support includes food, shelter, medical and dental care, education, recreation,

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

In 2016 Donald Trump beat Hillary Clinton in the presidential race to become the president of the united states. Including the likes of Zachary Taylor, Ulysses S. Grant, Herbert Hoover, and Dwight D. Eisenhower, Donald Trump is one of five presidents that has never been elected to public office before becoming President. Instead, Donald Trump gained majority of his notoriety for being a businessman, real estate developer, and former reality tv star. During his presidential race, it was clear the Donald Trump would be like no other president. During the elections

including the Earned Income Tax Credit ( EITC) and the Child Tax Credit ( CTC) that directly

The Carters meet the gross income test because their income is not taxed and is not included into their gross income. They both also qualify as a qualifying relative. Florence’s support provided by John and Janet is $4,500 for the year. This includes the $3,500 for the lodging and food and the $1,000 paid for her dental work. Calvin’s support is only $3,500 for the year for lodging and food. His life insurance premiums are exempt and cannot be figured as support. Florence and Calvin spent $4,000 of their own money for their support. Florence passes the support test, but Calvin does not. Therefore, Florence qualifies as a dependent exemption because she passed all three tests. Calvin on the other hand only passed two of the three tests and cannot be claimed as a dependent exemption.

In 2013 the American Society of Civil Engineers released a report card after carefully analyzing United States infrastructure. The experts awarded the infrastructure a D+, which is usually considered a failing grade. Experts also pointed out the fact that most United States infrastructure is approaching the end of their expected life-spans. Those who are in charge of maintaining and repairing infrastructure have expressed a dire need for more funding. Deficient infrastructure has already caused thousands of deaths and will continue to do so if Congress does not step up. Congress should increase taxes in order to maintain and repair our failing infrastructure. Increasing taxes would not only help to ensure the people’s safety but it would also prevent the government from going further into debt and it's a fairly quick solution.

Hello, Caitlyn. I personally believe a balanced budget amendment would be in order considering politicians refuse to stop the spending. The reason I would call for a balanced budget amendment is because of Greece. After seeing the mess Greece is in, along with a myriad of many other European countries, I believe national debt is not manageable because the government will continue to spend more than they take in taxes. The Grecian government refused to reform their entitlement programs, so they went into default. The U.S. needs to reform our spending before we head down the same path of self-destruction.

Although it is not a new topic in America, the decision to raise the minimum wage continues to be controversial, especially in the political realm. The political parties still move to block the opposing party from successfully implanting their ideals, causing either nothing to be accomplished or the situation to worsen. Research shows that raising the minimum wage a reasonable amount would lessen the gap between the rich and the poor, continue to fulfill its original purpose of protecting workers and keeping the economy in a healthy state, and contain more advantages with a minute influence on employment rates.

My choice for a solution for maintaining the solvency of the Social Security administration is to Raising the Income Cap. With any solution you chose there are pros and cons to each choice. We first have to look at the Social Security’s taxable maximum. In 1937, it’s a payroll taxes applied on your first $3,000 in earnings, in 2011, $106,800 on first earnings, and in 2015, $118,500 on first earnings. According to Senate Committee on Aging (2010), eliminating the taxable maximum without the increasing of benefits will decrease the 75-year actuarial deficit by 2.32 percent. With the increase the deficit would be reduced by 1.89 percent of taxable payroll. “Increasing the cap on taxable earnings would generate greater payroll tax revenues to reduce

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

With the United States increasing with federal debt of $14.2 trillions dollars, it was proposed that a balance budget should be amendments to the Constitutions. The balanced budget amendment (BBA) was failed at the House on November 18, 2011 with it didn’t reach a two-third majority by 23 votes. The last time the house voted on the BBA was since 1995, when it was one vote short in the Senate. Also there been states that have of a balanced budget amendment into their constitutions and there are many version of how to budget. But if it were to pass we can expected a restrict growing government, save the AAA rating and low interest rates, and accountability on politicization on focusing on how to govern.

When a government’s spending exceeds its revenues causing or deepening a deficit it is called deficit spending. Deficit spending is only one of numerous tools used to help manage the economy. Deficit spending is presumed to stimulate consumer demand by helping the consumer to obtain more money to spend, in turn, the demand of product will rise. There are advantages and disadvantages to deficit spending that we will discuss further below.

Donald Trump was elected president of the United States of America on November 8th, 2016, and now has been running our country for over a year. As Trump’s first year in office slowly began, his reputation seems to be creating different outside views of our nation and arguments started producing everywhere. After competing with Hillary Clinton for the presidential term in office, Trump defeated her along with her democratic supporters causing one of the most shocking elections in U.S. history. Using public media web pages, we are reviewing both sides of the argument regarding Trump’s election and we are going to decipher why each arguer supports their side, and why each side is reasonable for the benefit of our country.

The future is uncertain, as such conventional wisdom dictates that governments must intervene in the economy to help enhance growth and ensure stability. However, is too much intervention a bad thing? There are many reasons why it is so but one such reason is that in an economy where there is excessive government intervention and ownership such as in the Soviet Union, there was a lack of risk and subsequently lack of innovation as rather than satisfying customers the concern of a producer in the system was to satisfy the state. The lack of a reward for working harder, due to all businesses being owned by the state reduces incentive to produce or innovate and this leads to inefficient outcomes in an economy. This is a contrast to a capitalist society where innovation and hard work can lead to personnel gain in the form of money. Price ceiling and price floors are price control mechanisms that are used to, respectively set a maximum price, and a minimum price. One such problem as a result of implementing these is that they will artificially cause a shortage or surplus, respectively, of the good or service due to affecting supply and demand. This prevents the good/services to be at the equilibrium price, which is where economic outcomes would be most efficient. So should governments intervene? Regardless of the aforementioned downsides this has always been a topic of debate between Keynesian economists and classical economists, but a widely accepted consensus is that some level