The Theory Of Equal Sacrifice, Rational Expectation Theory, And Optimal Tax Theory Essay

The American government has struggled with the issue of taxes and the budget for over a hundred years. Class conflict, adversarial political parties, and convoluted economic philosophies have resulted in a never-ending debate over taxation. The New York Times newspaper article, “Senate Panel Vote Backs Budget Plan”, from June 1993, discusses the current feelings of the time in regards to the budget and taxation. Moreover, the article mentions factors such as democrat-republican debate, trickle down economics, and high verse low taxes for the middle class. The issues discussed in this 1993 article differ only slightly from the taxation conversation of today. However, now in 2011, we face a budget crisis that threatens the American economy

The main topic of this research paper is taxation. Seeing that this topic is pretty open, I’ve chosen to write about the proposed idea of Fair Tax. Along with a little bit of insight on Fair Tax and a couple highlights of history, I’ll try and explain some pros and cons as well as give my opinion on the topic.

About 5 trillion dollars were given up by American citizens in 2014, why, taxes, they are all around us from your groceries, your clothes, your community roads, libraries, and many many more American items. The amount of money devoted to taxes is crazy and it only can get worse if we do not end this issue of unfairness and inequality among citizens. Which is why more people are becoming independant on higher classes and causing tax standards to raise and drop for many citizens. When others argue it is fair and acceptable for different based tax percentages and incomes to be applied so that it is put in more for higher class and less for lower classes. However, tax fairness has been debated and changed over many years, do you think taxes

With the next presidential election just around the bend, there have been many heated policy debates on both sides of the caucuses. One of the more intriguing of these has to be the debate on the structure of the current tax system. Many GOP hopefuls are putting forth plans to impose a Flat Tax System. The scope of this paper is not to analyze, per se, the reasons behind their putting forth such ideas. Instead, this paper will attempt to analyze the ethical considerations and ramifications of a flat tax system as opposed to our current progressive system. In order to accomplish this goal the following study will: present a thorough analysis of the background surrounding this issue; the stakeholders and their involvement in the issue as well as the issues effects on each; two ethical theories and test and how they apply; and finally a Biblical interpretation on the ethical issues that will be brought to light and a suggestion to believers on what side they should take given the analysis presented.

For some time now, the United States economy has been trending in the direction of social injustice. Income inequality is ever expanding, and the primary reason is that those people at the very top of the income distribution are accumulating wealth at rates never seen before. The rich are getting richer to the extent that they are driving a massive wedge between socio-economic classes within the United States, and the impacts are far-reaching. Combating this inequality begins with an examination of the economic policies currently in place. Federal tax policy is an ideal place to start, considering the prominent role it plays in determining the distribution of wealth.

Almost every American adults in the United States of America has to fill out a tax return to see if those still owe the government some money, or if those will get some back from the government. A recurring thought in the mind of many of these adults is,” How can my taxes be this high”. The middle class is supposed to be living comfortably and not have to live their lives worrying about money. But, in today’s United States the middle class has to worry about money every single day. The upper class is almost being penalized for earning too much money based on the percentages that they have to hand over to the government. The businesses that once were able to create jobs are now having to cut jobs because of the astronomical percentages

As the years passed, the government increased the number of things that were taxed for

Almost all Americans pay taxes, but the amount and the type of the paid taxes are very different from a taxpayer to another depending on their incomes. Affluent Americans pay a larger share of their income in individual income taxes, corporate taxes, and estate taxes than lower-income groups. By contrast, lower-income groups owe a greater portion of their earnings for payroll taxes and excise taxes than those groups who are better-off (citation). Although we have discussed whether rich people should pay more taxes for a long time, we need a clear answer of why rich people should not pay more.

Throughout the past couple of decades, countless amounts of people have begun to wonder at which rate the rich should pay more in taxes. It is known to most Americans in society the rich earn more money they worked hard for, but the more you earn, the more taxes you should pay. The top one percent of wealthy American business owners, etc. have learned ways around paying their taxes through loopholes abusing the rights of equality. It 's not a secret that money causes greed and selfishness. The wealthy are less likely to help those who are in need of help. The poor are forced to go through difficulties when it comes to the financial aspect and have to worry when it comes to how their money is spent. This is unlike the rich however, because they 're paying the same amount of money as someone who’s substantially less than 3 them. With a stale economy right now daily living is hard on people that are in middle and lower class.

The second insight discusses that taxpayers have positive attitude towards revenue authorities and belief that the government works for the benefit of the individuals then there may be positive relationship between tax-morale and tax compliance. It is very essential that taxpayers feel that the system is trustworthy, fair and just and the money paid by them is utilized in the right manner. There is evidence that tax attitudes improve when the link to public expenditure is

Every community has its unique economic framework that is accompanied by clear laws, institutions, and policies. All these have an impact on the way in which the economic resources and even the financial burdens of people are distributed. The economic categorizations are always the workmanship of human political systems that frequently change from time to time across societies. The shape of the economic frameworks is very critical as it determines how the financial resources are distributed and it is the nature in which the funds are distributed that affect the lives of the citizens. Arguments that revolve around which framework are to be preferred in the distribution of the economic resources is what entails distributive justice. The principles of distributive justice are therefore regarded as a freedom for seeking moral guidance for the political systems that hinders the spreading of economic benefits and costs in

An income tax is not only costly in the amount of time and money it takes to file the paperwork correctly but, it also stunts economic growth as “income taxes are levied on work, savings, and investments. In essence, the government grows by taking money from what makes the economy grow” (Bedard 2010). A consumption tax on spending for goods and services that does not unduly burden the poor nor penalize savings and investments would be a sensible upgrade for the tax policy currently in place. Initially, this essay will discuss issues within the current income and corporate tax codes. The essay will then shift to reforms of the

The theory of Utilitarianism states that actions should be judged as right or wrong depending on whether they cause more happiness or unhappiness. It weighs the rightness and wrongness of an action based on consequences of that action.

When it comes to income taxes, the focus is usually on jobs, personal investments, and savings. The debate on who should bear the greater burden when it comes to income taxes is timeless. If all types of tax are aimed at developing the economy, it should be everyone’s equal responsibility to engage in taxation regardless of one’s economic class. Both parties involved proclaim the legitimacy of their arguments. The articles under discussion are representative of this debate. On one side of the debate, there are those who feel that the rich should pay more taxes. Then there are those who feel that the rich should not be punished by shouldering the burden of taxation (Benson and White 1). From an economic theorist’s point of view, both articles articulate valid arguments. However, this does not nullify the significance of the prevailing economic situation. The above debate can be based on various economic contexts.

I’ve summed up the introduction of Taxation to these slight words. Taxation is defined as a way that the government able to generate or collect revenue from the citizen of one’s nation through different sources. As what I’ve learned from Taxation course that there are two types of taxation, direct which are paid by the taxpayer directly to the government, and indirect which are collected by an intermediary (like a retail store) from the consumer. The intermediary who will file the tax return later and forward the amount of the money to the government with the return. This tax is applicable to organizations and individuals. In this reflection, I would like to highlight what I learned of business and individual taxation, the experience on working with a group for the project and what challenges I faced and how I was able to get past.