U.s. Federal Government Reform

1886 WordsJul 16, 20158 Pages
Introduction As the United States enters another presidential election year in 2016, the subject of tax reform has taken central stage to many of the issues being discussed. Today, many Democratic lawmakers continue to support rising tax rates under the current progressive tax system, while Republican lawmakers are making a push for a flat-tax system. As concerns over slow economic growth, high unemployment rates, and large government spending deficits grow among millions of Americans, the idea of a Eastern European modeled flat-tax system has grown. Some presidents, including Ronald Reagan and George W. Bush, have experimented with the flat-tax system, but Eastern Europe has provided the essential model of success for this type of system being implemented in the United States. As the United States federal government continues to discuss tax reform, the introduction of a flat-tax system would be essential to generating higher federal tax revenues, aid in economic growth, and lower unemployment rates throughout the country. What is a flat-rate tax system? As many Republican candidates for the 2016 presidential race support the idea of flat-tax rate system, many wonder what this type of tax reform means for the future. According to authors Steven P. Cassou and Kevin Lansing, “the flat tax would apply a single tax rate to all labor income above a given threshold and to all capital income after fully expensing investment expenditures” (Cassou & Lansing, 2004, pg.149).
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