Lowering Taxes Issues

Topics:
Category: Economics
Date added
2019/05/26
Pages:  3
Words:  814
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We live in a country where many people are suffering and few people are thriving, it’s not fair to the lower- and middle-class citizens that are suffering from financial problems caused by taxes. Lowering taxes has many benefits for our country, whether it be with our economy or our people. Taxes have affected many people who are financially in debt.

When one person talks of lowering taxes, he or she may be referring to taxes as a specific taxation in individual. Most U.S. Residents pay an amount of taxes, all imposed by the government agency, e.g., the municipality, the state or the government. Each agency oversees measuring its own taxes, which are written into this law. But by altering the law taxes will be lowered. Lowering taxes will get several benefits. If consumers can pay less for products because of the reduction of these sales tax, they would be promoted to pay more money. If income taxes are depressed, people may stay promoted to work harder, thereby increasing ratio. And, if corporate tax taxes are lowered, jobs may be promoted to create more products and provide more companies.

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I propose that the less taxes we get to give, the greater the amount of money that people. The two largest cases of taxation collected are income taxation and corporate taxation. Tax cuts may get in multiple forms, and the combined decrease at that corporate tax rate and income taxes could be the greatest choice, as it could make civilians and businesses more freedom to use their resources as they see fit. “On December 22, 2017, President Trump signed the Tax Cuts and Jobs Act.  It cuts individual income tax rates, doubles the standard deduction, and eliminates personal exemptions. The top individual tax rate drops to 37 percent (Amadeo)”.

“Although some say that one of the downsides of lowering taxes is that this administration will not be able to pay off the debt we have occurred over time, “The Trump administration had said that the tax cuts would pay for themselves by generating increased revenue from faster economic growth, but the White House has acknowledged in recent weeks that the deficit is growing faster than it had expected. The Office of Management and Budget said this month that it had revised its forecasts from earlier this year to account for nearly $1 trillion of additional debt over the next decade — on average, almost $100 billion more a year in deficits(tankersley)”.https://www.nytimes.com/2018/07/25/business/trump-corporate-tax-cut-deficit.html.

Thereby tightening its power to support companies, one school of thinking contends that lowering taxes can in some cases boost revenue (Martin)”. According to economists who believe supply-side economists, the reduction of specific taxes, e.g., income and capital increases taxes, is the best means to encourage growth in economy. As a matter of fact, these theorists think that, in some instances, lowering taxes will really increase government revenues, as the economy grows enough to balance the lower taxation rate.

If taxes aren’t lowered, then our government will begin to have too much power, for example “too high of tax charge may impede development and give the government a bit much control over how money is used (Ortiz). Lowering taxes will, in the good place, get several benefits. Most taxes are levied as the fee of one specific transaction, usually calculated in the form of proportion. For instance, the income tax that America residents are required to fund is estimated in terms of the proportion of their overall income. “If you had $50,000 of taxable income, you’d pay 10% on that first $9,525 and 12% on the chunk of income between $9,526 and $38,700. And then you’d pay 22% on the rest, because some of your $50,000 of taxable income falls into the 22% tax bracket. The total bill would be about $6,900 — about 14% of your taxable income, even though you’re in the 22% bracket (Orem) https://www.nerdwallet.com/blog/taxes/federal-income-tax-brackets/”

Without tax cuts, “The poorest Americans will be hit the hardest, but the middle class will feel the burn as well. Because the income required to be considered “middle class” varies from state to state — and from individual to individual, depending on your definition of the term — we’ve highlighted the share of returns among the second, third and fourth 20 percent of earners that will get a tax cut and tax hike in each state (Martin)”.

In a free country, money belongs to the people who earn it. The most fundamental reason to cut taxes is an understanding that wealth doesn’t just happen, it must be produced. And those who produce it have a right to keep it. We may agree to give up a portion of the wealth we create in order to pay for such public goods as national defense and a system of justice. But we don’t give the government an unlimited claim on our money to use as it sees fit.

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Lowering Taxes Issues. (2019, May 26). Retrieved from https://papersowl.com/examples/lowering-taxes-issues/