The Tax Deduction For Charitable

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.

People do not enjoy talking about taxes because they are too political, confusing, and depressing. It is no secret that the American tax code is a mess and something many economists describe as too broken to fix. Despite this, politicians have never stopped from trying to “fix” the code, yet they have had very little success. The U.S. Government’s tax code currently comprises “more than 67,000 pages of complexities” (Boortz, Linder, & Woodall 14). The Americans for Fair Taxation (AFFT) was founded in 1995 with one goal: create the simplest and best tax reform plan that would work in the modern market and economy. The AFFT’s best solution was a bill which they promptly called the FairTax.

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

The tax policy in the United States is very confusing. When the tax policy was originally written in 1913 it was four hundred pages. Now, over the past ninety one years, that tax policy has evolved to over 72,000 pages. Since the tax code has become so lengthy and nearly impossible to understand, the topic of tax reform has been in the minds of many. Although, most barely think about tax reform until tax season. It is a controversial subject due to the impact a change in tax code would have on the American people. The two most popular and widely known stakeholders in this debate are the two major political parties in the United States, the Democrats and the Republicans. The two parties share absolutely no common ground on the subject of

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

The view on the current government tax policy is considered “bloated, complex, and antiquated system” that overburdens United States taxpayers. Back in 1996, a proposal was brought by Republicans to Congress which was then passed, but sent to Clinton who later vetoed

Amity Shlaes talks about how presidents such as Nixon, and Bush removed millions of Americans from the tax bracket completely and that those same exact people don’t want a proportional tax rate and want to tax the rich because “they can afford it”. That just seems unfair and unjust. The first video was very opinionated saying that the rich now make more money than before, of course they have the money now due to war times & depressions being over however, the less money they have the less likely they’re to make more investments into other things such as creating more offices, and hiring more people to work for their company

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.

During 1945-1960’s the tax rate throughout these years were very consistent. In 1945 it was a little different, but after that till the end of the 1960’s the tax rate was about the same. So in 1945 the tax rate on average was about 63% for the average person. And for people who invested their money the rate for the capital gain was about 25%. In 1955 it was the exact same thing; 63% for the average income tax and 25% for the capital tax rate. Even in the 1960 it was the same percentage so that just shows how little these taxes actually change, but they definitely changed a lot since then until now. They have different brackets now, so for example in 2016 the tax rate had 7 brackets depending on how much money you made, so there was 10%, 15%, 25%, 28%, 33%, 35%, and 39.6% So not only has the tax rate gone down, but now we have brackets so it’s more fair depending on how much you

As with any government program, the type of tax imposed on the taxpayers depends on the political group currently controlling the government. With a republican president in office, we are seeing the effects of the conservative philosophy: cut taxes and limit government involvement, thereby decreasing poverty by stimulating economic growth. Earlier in his term, President George W. Bush passed a major tax cut with this rational guiding his tax policy:

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.

This journal article looks at proposals wanting to change the charitable contribution deduction. The proposals fall into four categories, consisting of: caps, floors, credits, and grants. This study measured changes in revenue and giving using a “low” responsiveness (price elasticity of -0.5) and “high” responsiveness (elasticity of -1.0). The results found floors to be the most cost-effective proposal because they usually do not affect incentives at the margin. Caps look to create a more progressive system by reducing benefits to the wealthy; however, the introduction of a cap would have the largest negative effect on donations. A credit gives an equal incentive to all taxpayers regardless of their tax rate. Due to this a credit turns away

In addition to economic issues, taxation is also a political issue. Political leaders formulate tax policies to bring reforms in the taxation system in order to promote their agendas. The major tax reforms include: increasing or decreasing the tax rate, imposing new taxes on certain products and changing the definition of taxable income. It is evident from the research studies that no one deliberately wants to pay taxes. U.S’ tax policy reflects expression of influence - i.e., those who have power are successful in paying low taxes and their burden is shifted to people who have no power. Therefore retired individuals, small business owners and farmers find ways efforts to reduce their tax burden. Since its existence, tax policy has been enormously used for promoting political and economic agendas.

The United States is in a recession; it has been facing some of the worse economic times since the Great Depression in the 1930’s. One option to fix the economy is to change the corporate tax rate. To lower it or to raise it, that is the question economists have been speculating. America's high corporate tax rate and worldwide system of taxation discourages U.S. companies from sending their foreign-source revenue home, which makes U.S. companies defenseless to foreign acquisition from the international opponents (Camp). Corporations and United States citizens have been fighting for a tax reform, which would hopefully help the American economy; either by lowering the corporate tax, or by raising the tax.

He suggests that money given to a charity could morally bring about the same type of satisfaction, than if going on vacation or spending money on a video games (Singer 336.) Singer also suggests that often time’s society is afraid of where their money will end up or how it will be use when donated. Singer names four charities that are in existence which are single-handedly devoted to improving the lives of those less fortunate (Singer 337.)