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(the Bush Tax Cut: One Year Later)
The members of the AFSCME believe that the Taxes imposed under the Bush administration has influenced them very unenthusiastically, since it has assisted to restrict their capability to concentrate on vital national problems for fairly a few years, due to the reality that the Tax Act comprises every clause that would help the affluent and well-to-do and might add more new tax cuts slowly, and the entire would render the ultimate bill more costly than even George Bush had planned for it to be. Ultimately, every household holding job would be harshly hit by the plan. Besides, its influence on the question of Public Debt is worrying as well. The reality that novel Tax Cut might rescind the Estate Tax is an issue of apprehension as well, particularly since a majority of the states normally share this proceeds with the federal government. (the…… [Read More]
The current economic circumstances of the United States are dire. Political strategists and economic specialists have been trying to formulate plans for how to alleviate the situation and save the economy. Many have argued that the most important step in economic recovery is in the creation of new jobs so that the current unemployment, which is now more than 10%, will lessen. This is very important, but another step in recovering the economy is to determine how taxes should be utilized. Some argue that raising taxes will pump more money into the economy. Those people however, are neglecting the fact that there are so many people out of work. This places a higher burden on the working class citizens of America who are forced to pick up the slack. ith more money going to taxes and less funds on hand, more people are losing their homes and going…… [Read More]
How Tax Cuts Stimulate the Economy
There are two basic economic theories competing in America today: Keynesian and Classical. Keynesian economic theory calls for the government to influence the economy through government expenditures and collecting of taxes. Classical economic theory asserts that market forces keep the economy in balance and the government should not interfere. However in a strange way, both theories claim tax cuts can stimulate economic growth, the only difference is who gets the tax cuts. Tax cuts for the ordinary American, according to the Keynesian supporters, will put more money into the economy, stimulating economic growth. On the other hand, Classical economists claim that tax cuts for the wealthy will stimulate investment, create jobs, and stimulate economic growth.
Many Classical economists assert that an "Expansionary Fiscal Policy" can, through the lowering of taxes, increase the productivity of the economy, if the tax cuts are aimed…… [Read More]
Each argument presented is predicated on the idea that the budget deficit is a critical problem that must be addressed, and that the tax cuts are critical element of addressing the deficit. Long-term interest rates on U.S. Treasuries are below 5%, indicating that there is little concern in the markets about the creditworthiness of the U.S. government -- deficits are not worrying the markets, only the politicians. This would imply that it is economically safe to allow all of the tax cuts to continue. Even though there are other causes of deficit -- bailouts and wars in particular -- and other means of addressing the long-run deficit such as health care reform, the Bush tax cuts still accounted for 25% of this year's deficit (Gale, 2010). As such, not extended the tax cuts can have a significant impact on the deficit, in particular when combined with measures to control other…… [Read More]
Congress recently passed a tax cut package. Depending on who one might ask, the tax cut will turbocharge the economy or it will lead to massive deficits in the years to come. The article that is summarized in this brief report looks at a take and summary from the New York Times. The verdict, in short, is that “time will tell” as to whether or not the tax cut will achieve the desired result. The article first points to a few claims that President Trump made during his recent State of the Union address. One of those claims, of course, related to the tax cut package that was passed and how it was the “biggest” in the history of the country. The article’s authors, James Stewart, admits straight away that the current form and function of the economy is very strong. However, Stewart is also quick to point out that…… [Read More]
eaton also adds that low and moderate income people tend to spend money on goods and services that are more likely to result directly in jobs and incomes in the community (the spending continues multiplying on a secondary or tertiary basis). Higher income people spend in a way that contributes to "leakage" to their local economy by taking trips to buying non-local goods and services.
The implication of eaton's article is that tax cuts should be directed at low and moderate income people to stimulate the economy. Perhaps, from a strictly MPC point-of-view, this is correct. but, high income people also invest which stimulates the economy and this should have been explored as well.
51% Say Cut Everybody's Taxes to Stimulate the Economy (2009, June 11). Rasmussen Reports. http://www.rasmussenreports.com/public_content/business/economic_stimulus_package/june_2009/51_say_cut_everybody_s_taxes_to_stimulate_the_economy
eaton, R. (2003) the Idolatry of ideology Alternatives Magazine. http://www.alternativesmagazine.com/25/beaton.html… [Read More]
ith the extra money that businesses make, they not only invest it, but they pay some of that in taxes as well. Those taxes go to government, which can spend more. Government spending also fuels increases in business income. As governments collect more taxes from business, they can reduce consumer taxes further.
The net effect of all of this is that lowering taxes on consumers can have an exponential effect on increasing the Gross National Product. Tax reductions not only have a direct effect, but they have indirect effects that filter throughout the nation's economy. In this way, cutting taxes boosts the economy.
Cloutier, R. (2009). Do tax cuts stimulate the economy? Investopedia. Retrieved November 29, 2009 from http://www.investopedia.com/articles/07/tax_cuts.asp?viewed=1
orks Cited:… [Read More]
Sugary sodas contain corn syrup, but the American Agricultural Department subsidizes American farmers for growing corn, and this is one of the reasons that high-fructose corn syrup is so ubiquitous in the food supply. e are taxing corn syrup and subsidizing it at the same time, in other words. "The bigger issue, which the industry neither can nor particularly cares to rebut, is that the product [corn syrup] exists at all. e pump absurd quantities of cash into subsidizing corn (we also have a huge tariff on Brazilian sugar cane, incidentally). Over the past 10 years alone, Congress has appropriated more than $50 billion to encourage farmers to grow the stuff. But people don't want to eat $50 billion in subsidized corn. And if the cobs just sat around developing mold, Congress would cut off the spigot. Enter high fructose corn syrup, which sucks up the subsidies and created a…… [Read More]
ill ignoring any pollution problem be beneficial to the community? Most businessmen would probably answer that question with a negative, but does that mean they feel compelled to do anything about the problem, even if their corporation was the one that caused it. Currently the answer would be no, but if they were going to be penalized for not doing so, and that penalty was coupled with an incentive for accomplishing the objective, then it would probably be a no-brainer, even based on the businessman's viewpoint.
Peter Coy states; "A few polluters that cannot easily reduce emissions will pay a substantial cost, but those with the technology to cut emissions cheaply will have a far greater incentive to do so than they would have under traditional regulation." The same technology used to accomplish a cleanup, can also be used for other reasons, which is an additional benefit to the corporations.…… [Read More]
Presently the government manipulates the books around in order to compensate for any tax cuts that they give. In reality, the vital thing for the government to do is to discontinue spending money. While this is not always reasonable, it is essential to make sure that the people and corporations of the nation can flourish. Tax cuts, when put into practice for long-term consequences, will offer a momentous increase in the market (How Do Tax Cuts Help the Economy, n.d.).
Due to the model of fairness, cutting taxes is by no means an easy task. There are two distinct notions that are at play. These are horizontal equity and vertical equity. Horizontal equity is the scheme that all people should be taxed uniformly. An instance of horizontal equity is the sales tax, where the quantity paid is a proportion of the object being bought. The tax rate remains the…… [Read More]
Income Tax Deduction
Taxes have existed in the United States for all of its existence but they took on many forms prior to the modern income tax. The income tax was not finalized and permanently ensconced in the United States law until the 1910's. The tax rates, at its normal levels, have been adjusted upwards and downwards depending on the economic cycles with the most recently developments being the "Bush Tax Cuts" of the 2000's and the recent tax spikes under the Obama Administration. While income taxes affect some more than others, nearly all people are affected based on the assets/income they possess and earn as well as the familial structure they maintain.
Common Tax Deductions
As noted in the introduction, familial status and assets/income are far and away the biggest determinants on how much tax is paid, if any. Indeed, some people actually get money from the government and…… [Read More]
Economic Implications of Tax Cut
ith Clinton set to make tax cuts part of her platform for the 2016 election campaign, the implications of a tax cut on the U.S. economy are something to consider (Meckler). However, the fact that the political elite are using "tax cuts" as a stumping platform should indicate exactly how much "impact" that would really have on the economy. Considering the history of the U.S. economy, the system of state-sponsored usury that exists, the tight control of the Fed over interest rates (the control of which effects the economy a great deal more than "tax cuts" -- a point which will be discussed in this paper), the trillions of dollars of debt currently being carried by taxpayers, and the relationship between the financing giants of all Street and the political staples of ashington who supposedly represent "Main Street" but in reality represent the vested interests…… [Read More]
Capital gains and dividend taxes were both initiated in the early 1970's, by the Democratic Party. efore dividend taxes were enforced, the government made its money through higher aftertax yields, The dividend tax was originally supposed to be a progressive measure, so that the wealthiest paid correspondingly more than the poorest because they had benefited more. At this time, only the wealthy invested in stocks. This is no longer true. Most middle-class people today are investors in the market and they do not have the expensive accountants hired by the rich to shield their investments from tax.
Investing in the stock market has become far more widespread over the last two decades, as 84 million people - representing nearly half of all American households - owning stock. Tax-deferred investment tools such as 401(k) plans and individual retirement accounts (IRAs) have placed millions of Americans who make $60,000 or…… [Read More]
Thorndike, Joseph J. "The IRS Is Hiding Its History." The ashington Times.
December 19, 1997, p. A23. February 18, 2008. http://www.taxhistory.org/thp/readings.nsf/cf7c9c870b600b9585256df80075b9dd/9de7fcd59915a3be85256e430079327d?OpenDocument
After 9/11, the Federal Reserve Bank, then led by Alan Greenspan, used monetary policy reduced the interest rate, or the rate that consumers must pay to borrow money. This did encourage individuals to spend more. However, it is still debatable if this was the most vital component in extricating America from the throws of economic recession. Government spending, or fiscal as opposed to monetary policy, is often seen as a more direct and superior way to rapidly change economic conditions. Fiscal policy was required to stimulate America's recovery from the Great Depression, according to conventional wisdom, although some still argue that it was the Hoover administration's monetary policy that was ineffective, not that monetary policy was ineffective altogether.
But most economists believe that, to get the…… [Read More]
American Tax System vs. Other Countries
The federal government first imposed an individual income tax in 1862 as an emergency means of financing the Civil ar. It also established the Bureau of Internal Revenue, predecessor of the Internal Revenue Service. Tax rates were 3% on income from $600 to $10,000 and 5% on income above $10,000. Later in the war the maximum rate increased to 10% of income." (Encarta)
My how times have changed. This paper will compare the tax systems of four different countries to the American tax system. The four countries that have been chosen are South Africa, Mexico, Hong Kong, and New Zealand..
First lets attempt to briefly (if that were possible) explain the American tax system.
The American Tax System
America has a progressive tax system meaning the greatest tax burden is on people who have the most income. The American tax system can be described…… [Read More]
Compare the long-term tax benefits and advantages of each type of reorganization, and recommend the type of reorganization that will be most beneficial to the client
Reorganization takes into account any company restructuring that may be tax-free under the United States law section 386. It encompasses the notion of acquiring new entities in a manner that all financial transactions are non-taxable. There are certain general requirements that have to be met in order to qualify. To begin with, it must be a plan of reorganization, must have a sound and fitting business purpose, and must satisfy continuity of interest as well as continuity of business enterprise examinations. There are different forms of reorganization that include type A, B, C, and D. reorganizations (Macabacus, 2017). To begin with, type A reorganization takes into account mergers and consolidations. The advantages of this reorganization type is that it is flexible, funds and other…… [Read More]
Tax Planning -- Employer (II of II)
Tax Planning - Employer
The marketplace that businesses operate in has become more and more globalized and international in nature, not to mention extremely competitive. This particular report will focus on the employer and their tax implications when it comes to operating and/or headquartering in one or more countries around the world. The prior report focused on the employee. While the implications for the employee are complicated and diverse enough, they become even more complicated when speaking of the employer, and for a number of reasons.
Just as there were a number of considerations relevant to the employee and their tax treatment, there are a number of tax considerations that USCo will need to consider for themselves and they are as follows:
The actual headquarters location (nation, state/province and county/city)
The actual locations outside of that home country (or state and city)…… [Read More]
Capital Gains Tax in Australia
Capital gains tax refers to a type of tax levied on capital gains incurred by organizations or individuals. The capital gains refer to the profits that an organization or individual selling a capital asset obtains through selling an asset at a price higher than the original price. In many countries, the amount of capital gains tax takes into consideration the type of investment and the holding period of the asset. Australian capital gains tax takes a proportion of all achieved capital gains. Capital gains are not separate tax but part of the income tax on individuals and corporations upon disposing of capital assets. Australian capital gains tax exempts personal properties such as home, car, and furniture. Australian residents in any part of the world are subject to capital gains tax.
Issue 1. Moodly's Conversion of her main residence.
Moodly being a childcare worker, wishes to…… [Read More]
This means that they should have alternative sales taxes imposed. These small increases will result in school districts receiving more income. As the legislature can avoid making dramatic cuts backs from the general fund and will have another source of revenues. This will improve their ability to provide educators with the resources they need. (Balu, 2011)
A good example of this can be seen with a study that was conducted by Balu (2011). She found that this formula has been successful in helping to ensure that school districts are receiving additional financing. Commenting about these shifts, she concluded that this will prevent sudden decreases by introducing another form of revenues for education with her saying, "Districts in states that shifted their tax base for education toward sales and income taxes, received more than 60% of their revenues from the state. They experienced an increase in revenue stability after finance equalization…… [Read More]
The people who opt for early retirement stop staring contribution to pension system where as they start getting the benefits of pension system. (Prieto, 1997)
The traditional unfunded social security system is facing lot of problems in the United States and other developing countries with the increasing life expectancy of the people. The cost of providing any level of service is directly linked to the percentage of people who are employed against people who have already retired and enjoying pension in a pay-as-you-go system. The problem is continuing and increasing with people's move towards early retirement which is encouraged in many countries social security system. Even in the event of retirement being stabilized, the steep increase in the ratio of the aged against that of working age is contributing to the substantial raise in the cost of pay-as-you-go system. The United States estimators, who work for social security system, forecast…… [Read More]
Carbon emissions during recent decades have generated much controversy and some communities have taken harsh measures in order to combat effects associated with the process. The Australian Federal Government introduced a carbon tax of $23AUD per ton of emitted carbon dioxide on a series of fossil fuels in order to effectively deal with pollution. Finances gained from the process have been used to reduce income tax and provide Australian citizens with several benefits. hile the legislation has been welcomed by many local and international bodies, some have frowned upon it and have called for its repeal on account of how it produced much damage both on a small level by increasing cost of living and on a larger level by preventing businesses from being able to experience progress.
Tony Abbott's article "THE COALITION'S PLAN TO ABOLISH THE CARBON TAX" is among the most recognized criticisms regarding the carbon tax in…… [Read More]
In Pennsylvania taxation is a huge issue, much like in the rest of the United States. arring factions on either side of the political agenda work to either raise or cut taxes within a given year. In times of economic crisis, such as is occurring in the United States at the present has forced citizens and government officials to reexamine taxation practices in the hopes of overturning the depression. In additional to federal taxes, businesses and individuals of the U.S. are required to pay taxes to the state and to their local communities (Financing page 458). State taxation can be extraordinarily high. It has been proven that many states have higher corporate tax rates than several countries of the world. hen comparing Pennsylvania to other states in the country, it becomes apparent that the current tax rate is exorbitant and putting a great deal of pressure both on…… [Read More]
(Dunkelberger, 1) This is, of course, a statement of direct reflection on
the approach taken by lawmakers to building a lagging budget, which
determines to impose heavier fines and fees upon members of the public.
Rather than raising taxes, here the economic struggles are in a certain
matter only compounded amongst those who have in some manner run aground of
local or state law.
And as point of fact, the article points to another recommendation
which seems to reinforce this tack. As Dunkelberger tells, "one of the few
winners in the budget process was the Florida Highway Patrol, where
troopers will be in line for a 5 percent pay raise on Oct. 1. Lawmakers
approved the raise after hearing the agency was steadily losing personnel
to other law enforcement agencies that can pay higher salaries."
(Dunkelberger, 1) To say nothing of the fact that this pay raise was a…… [Read More]
What are the pro's and con's of the Bush Administration's proposal to convert the ection 8 voucher program into an aggregated block grant to the state?"
This is a paper that outlines the arguments of why Bush Administration's proposal to convert ection 8 voucher program to block grant is not feasible.
The ection 8 voucher program, which was started in 1976, helps approximately 2 million low-income families and people with special needs, such as the elderly and disabled, pay for rented housing. The program can also be used by these people to save up for down payments when purchasing housing. The program is administered by the Department of Housing and Urban Development, which currently distributes the funds to low-income families through public housing agencies.
Typically, citizens contribute a maximum of 30% of their monthly income in rent, and the Government pays the rest. Families who make less than…… [Read More]
The current fiscal crisis facing American states has led to some drastic changes in state budgets. Throughout the country various states have been struggling to balance budgets without cutting vital services to citizens. In many states this quandary has caused a great deal of debate and has proven to be a major hurdle for governors. The purpose of this discussion is to examine the New York State budget as proposed by New York's governor, Andrew Cuomo. The research will focus on how the budget affects the public policy especially in the health care field. The discussion will also evaluate the advantages of the proposed budgetary cuts.
On February 11, 2011 the governor of New York released the 2012 budget proposal. There are several cuts that are expected to take place as a result of this budget. The governor explains that
"New York is at a crossroads, and…… [Read More]
Global Warming is real and happening
When it comes to the environment, one of the major topics for concern revolves around the issue of global warming. While there has been much debate on global warming, the fact of the matter stands, that numerous items if scientific research demonstrate the global warming is in fact real and happening. Those who oppose the idea that global warming is real and happening, do so often seeking refuge in the assertion that the climate of planet earth has changed continually through time, and that the climate changes that some attribute to global warming are actually just changes that are typical to the fluctuations of the earth. At this day and age, scientists have high technological tools such as satellites which orbit above the earth and which are able to show scientists snapshots of the "bigger picture" of this issue and preventing any further denial…… [Read More]
Evaluating the current state of the United States economy
Although many are of the opinion that the recession that the globe was forced into in 2008 is finally uplifting and signs of economic revival can be witnessed. The resulting high levels of debt and unemployment from the recession had dragged many countries, especially the United States in to a state of economic turmoil. In order to reverse the effect of such factors, the United States government has implemented strategic monetary and fiscal policies. These policies attempt to rejuvenate the economic position of the country by not only controlling the supply and demand via tax cuts but also through re-setting the interest rate level in accordance to the low level of disposable income available to the unemployed / lowly employed citizens of the United States can acquire loans to allow easy spending and repayment of the loan as well.…… [Read More]
tax cuts it the State of Tennessee faced in the year 2002. It uses 3 sources in MLA format.
The issue of income tax has become the most significant for Tennessee in the recent years. After thousands of angry taxpayers upset claims at a plan to implement income tax the government has finally built the courage to address it. Tennessee is one of the only nine states without a state income tax. After the protest last year, there exist a split opinion about the income tax rate and the many varied views how it should be implemented. Tennessee is one of the lowest earning states with the ranking of 44th in employment and earnings among the other states.
A large number of Tennesseans view things very different from the protestors that storm Capitol in Nashville to intimidate legislators and disrupt peace. While the Governor of Tennessee in 1999 was against…… [Read More]
S. It too had run into a deep recession and too sought ways out of it by considering tax options. In a similar way, both candidates running for the South Korean presidency in the 2012 presidential elections vowed to "to prioritise "national reconciliation," better "economic democracy" and social welfare" (BBC News (17 December 2012) South Korea's presidential candidates) and to do this via easing South Korea's income gap between rich and poor by adjusting tax burden appropriately. No wonder, that U.S. President Barack Obama congratulated her and stated that he "is looking forward to working closely with her administration on issues of mutual concern" (ibid). The two nations currently have a lot in common and Ms. Park seems to be treading the path that Obama has in mind.
Our recent recession goes by various names. It is called, in turn, the Great ecession, the Lesser Depression, the Long ecession,…… [Read More]
aid President George W. ush in policy formulation. It is an all-inclusive paper dealing with a wide range of issues such as the American economy in general- discussing issues such as budget deficits, tax cuts, medical assistance and benefits for retired people, the weakening American dollar, allocations for the military, intelligence and homeland security, job growth and the regime and policies of free trade. With regards to security, it features the recent American initiate on the war on terrorism. The issue of Weapons of Mass Destruction (WMD) and nuclear proliferation are discussed quite at length.
Another aspect listed in the paper is the 'future', as it was viewed from the era of the Vietnam War. The relevance of the cold war is also outlined as a great American victory. Compelling issues such as the role of oil, OPEC, the Middle East and the socio-political and economic situation after the incidents…… [Read More]
..individuals are taxed in their total annual income minus their net new additions to savings, which equals annual consumption (eiler).
Both forms of consumption tax are not without their troubles and for the most part there is no consensus on the benefits of either alternative. Overall, the quest to reform the current system of taxation rages on. It will be very difficult to reform the current progressive tax system of because it is so steeped in bureaucracy and tradition.
The purpose of this discussion was to examine the progressive income tax. e found that the this tax system operates by taxing a certain percentage of individual income excluding certain deductibles. The investigation detailed the history of progressive taxation and clearly defines progressive taxation. The investigation revealed that the implementation of such taxation was controversial since its inception which came as a result of an amendment to the constitution. In…… [Read More]
British Age of Austerity and the Debt Crisis
Currently, the United Kingdom is going through a period of intense economic turmoil where the fundamental questions of monetary and fiscal policy are major political issues. As Europe finds it's way through the ongoing sovereign debt crisis, Britons find themselves on the cusp of a recession and their government is enacting unprecedented budgetary cuts to weather the storm. This paper will analyze the macroeconomic policies of the Cameron government in response to the sovereign debt crisis and the associated recession here in the United Kingdom.
Before we can analyze the current situation it is important to define terms. According to the Office for National tatistics (2011), the British government is in the midst of a recession. This is defined as a period of general economic decline, defined usually as a contraction in the GDP for six months (two consecutive quarters) or longer.…… [Read More]
New Jersey's Budget Crisis
Matt Bai and David Leonhardt agree that the rising cost of state government and the lack of fiscal restraint on the part of local and state government leaders has lead us to the budget crisis that many states are facing in these uncertain economic times. There are three lessons to be learned from these two articles; local and state governments need to become more efficient, contracts negotiated with public employee unions need to be reasonable, realistic, and affordable, and American's need to lower their expectations of what the government is able to do with the resources available.
Matt Bai gives three reasons for New Jersey's current financial woes, first the state sends 40% of its annual budget to municipalities and school districts in order to compensate for the shortfall in revenue from local property taxes. Second, the state doesn't have the recourses to cover its pension…… [Read More]
national and the international communities there are circumstances and realities that are in need of change. The social and financial implications of the way in which American government and society works is up for review. With regards to five very foundational issues, the growing divide between the rich and the poor, the role of the media, market capitalism and its shaping of the American culture, the role between money and politics, and the role of power in American politics.
No one should be surprised by the polls showing that close to 90% of Americans are satisfied with the performance of their selected President, or that close to 80% of the citizenry applaud his Administration's seat-of-the-pants management of an undeclared war. After all, most Americans get their information from media that have pledged to give the American people only the President's side of the story. (McChesney & Nichols 2002)
The media…… [Read More]
Since their introduction in the early 2000s, the tax cuts have diminished the nation's tax bill by hundreds of billions every year. Over the next ten years, they are expected to add $3.6 trillion to the debt. Without these cuts, our medium-term budget (say, over the next decade) would be sustainable. As long as new revenues are off-limits, attacking the deficit is equivalent to attacking the functions of government. That gives the anti-deficit argument strong ideological support from small-government advocates. But there are others who are not motivated by anti-government ideology but are misguided nevertheless. The ecovery Act, with a price tag of about $800 billion, was a historically large stimulus, and it was wholly paid for by borrowing. But by 2012 it will add less than 0.5% to the deficit-to-GDP ratio, and nothing to the growth in the debt (it does add to the level of debt, of course;…… [Read More]
Distributive Justice and Accounting Practice:
Every society has an economic framework governed by laws, policies, and institutions that contribute to distinctive distributions of economic incentives and burdens among the members of the society. The economic frameworks are usually brought by human political processes and they usually change across societies and within societies over time. Economic frameworks play an important role in the society because their structures significantly influence the economic distributions, which in turn affect people's lives. One of the most significant aspects of economic frameworks is accounting principles and practices that play a significant role in the effectiveness of these systems. From a wider political/economic view, understanding the function of accounting is crucial for understanding how a society's economic framework operates. Generally, accounting is entrenched in a capitalist, free-market, and economic system through promoting the values upon which the system is based.
The topic of distributive justice…… [Read More]
economic data that has been released in 2005 are somewhat contradictory, but the general impression is that the U.S. economy is managing a strong and sustainable growth. Indeed, the report published on January, 18th 2005 showed investments in U.S. assets of around $81 billion for November 2004, more than enough to finance and fund the current account deficit of $60 billion.
In terms of weaknesses, we need to mention the enormous trade deficit and budgetary deficit that the U.S. is currently encountering. These deficits have diminished confidence in the dollar, as its strong descent over 2004 has shown.
As any measure in time of economic growth and growing demand, the officials should now be concerned on policies meant to stabilize and prevent any inflationary factors. One such policy is increasing the interest rates and the Federal Reserve has already taken specific measures in this sense, increasing the rates to 2.25…… [Read More]
Implications of DoD Force eduction Plan
Defense budget spending: The inevitable need for reductions
Cuts in the defense budget are inevitable for the Department of Defense and it must accept this fact. Given the burgeoning deficit, reductions in tax revenue, and increased need for social services (such as unemployment assistance and entitlement programs), the Department of Defense must find ways to do 'more with less.' Granted, this will be challenging, given the current demands of modern warfare, but the Department must meet this challenge rather than attempt to lobby against such legislative initiatives. The "2011 Budget Control reduce[s] Defense Department future expenditures by approximately $487 billion over the next decade... Achieving these savings is hard, but manageable. It is hard because we have to accept many changes and reductions in areas that previously were sacrosanct" (Defense budget priorities and choices, 2012, Department of Defense: 2). Ultimately, rather than…… [Read More]
It becomes more and more likely that by the middle of this century, all those hard-earned dollars that today's twenty- and thirty-year-olds have paid into Social Security will simply not be there.
Privatizing social security ensures the post-baby boomers that their money will be there for them when they retire. It takes the control out of the government's hands, which has notoriously not been the best financial advisor in history, and places in the hands of the individuals who earned it. In addition, eventually, it will reduce the expenses of the Social Security Administration as more and more workers no longer have to rely on the system. In addition, it puts money into the U.S. economy, not sitting stagnant in the U.S. treasury.
Disadvantages of President Bush's Plan:
Both aspberry (2005) and Weisman and White (2005) see one major flaw in the President's plan. The future scenarios that lead to…… [Read More]
tax policies proposed by the republican presidential candidate. Mitt Romney has proposed that the marginal tax rate should be reduced by twenty five percent across the board for all tax payers. However, the research conducted indicates that this policy will most likely not meet the state objectives of the policy which is to stimulate the economy.
The main concept in this article is how taxes can be used to serve as a stimulus to the economy. The argument by the conservative leaders is that tax cuts that are primarily directed towards the top income earners in the United States will provide an incentive for the "job creators" to create more jobs. However, the researched look at different periods in history and found no correlation between reductions in taxes for the top earners and unemployment. Therefore, there is no historical evidence to support this position. However, evidence was found that by…… [Read More]
In addition, just over $41 billion was removed from 2001 and 2003 tax cuts. The cuts in military spending will affect a wide variety of citizenry. Specifically, military personnel will be affected with reduced budgets across the board. This will result in a reduced readiness of the military to protect the United States, in the short-term and the long-term. This reduction in spending will also negatively affect civilian contractors and other companies that provide products and services to the military. This will result in lost revenues and decreased profitability for these organizations. A secondary effect of this could result in lost jobs and reduced tax revenues for the city, state and national governments, as well as reduced revenues for other businesses in the community, if these organizations implement worker layoffs.
Social Security cuts will negatively affect the growing population of Baby Boomers and those already receiving Social Security benefits. However,…… [Read More]
Although Daggett's proposal is harsh, the next governor should consider instating this measure, or a similar type of proposal.
The reason for high property taxes in New Jersey is multifaceted. In theory, property taxes are supposed to be equal in the aggregate: "Equalization as between individual properties within a municipality is an ongoing function. It is an important concern since its aim is to stimulate a continuous striving to ensure each individual parcel of property bears its just share of the property tax burden," but the rise of high-cost properties in districts with a substantial middle class population have made this goal of proportionality elusive (Short and simple, 2009, NJSLOM). In recent years, the poor and middle class have assumed a disproportionately large burden of supporting local budgets relative to the value of their property in the state.
hile a more equitable balancing of the tax burden by creating more…… [Read More]
Warren Buffet, for instance, earned $46 million last year and was taxed a mere 17.7 per cent, while his secretary who earned $60,000 was taxed 30%. Buffet, after all, super rich as he is, is not working making his money instead from investments, capital gains and dividends that, as imposed by the bush administration, are taxed at rates that are as low as 15% (Grosz, 2012). This kind of treatment should be reversed. There will be political reactions from the most wealthy and powerful in the nation. This needs to be withstood and may not have long-term ramifications.
Health insurance - Given the difficult economic times and its cumulative debt as well as given rising cost of health insurance and rising amount of people who need it, the U.. government may well decide to make its conditions for receiving health insurance even more rigid. Consequently, less people will be qualified…… [Read More]
The final step in decrease law enforcement budgets was the cut of 20% federal prison system. As of right now, prisons take up millions of dollars to house drug offenders and other non-violent criminals. These funds are needed elsewhere, and so they must be taken from keeping up the building and regulation of so many unnecessary prisons in the United States.
In terms of protecting consumers much needed to be done. To ensure consumers protection on investments, deposit insurance increased by 10%. This will allow people to renew faith in the banking system in they have more insurance on their deposits. Additionally, I cut 20% of tax cuts for the richest 1% of tax payers, 10% for the second two richest. Hold even for the third, and an increase of 10% for the bottom tax payers. Furthermore, I cut 20% of untaxed foreign profits and 10% of tax benefits for…… [Read More]
personal income tax policy become one of the primary issues in the 2012 Presidential election campaigns from both parties. Obama has publically stated that he wishes for the Bush tax cuts, which substantially advantage the top one percent of income earners, to expire. However, he wishes to retain tax savings for the middle class. Mitt Romney on the other hand has stated that he would like to extend the Bush tax cuts, accelerate them even, and further reduce rates that individuals pay to United States as part of his plan to stimulate the economy. This analysis will consider both sides of this contentious issue and make recommendations to the Obama campaign as to how best to market their position on personal income tax policy.
Both candidates offer the American electorate only general outlines of their major tax proposals. Obama campaign touches on broad concepts such as raising tax rates on…… [Read More]
A lot of debates exists out there in the economic ether regarding the best economic structure for an economy. Even so, there is a broad amount of consensus that exists regarding what should be done during expansionary economic shifts and what is less than wise. With that in mind, the author of this report shall address a number of questions related to that overall topic including what should be done with taxes, government spending and the general tools of the Federal Reserve Bank including the changing of the reserve ratio requirements, the discount rate and the selling of government securities. There is also the question on what happens with things like aggregate demand, gross domestic product and employment. While predicting the outcome of economic efforts and policy can sometimes be hard to pin down, there are best practices that are generally held to be better than others when…… [Read More]
Thus it was confidence ebbed that had ebbed actual income. The Hiscox Wealth eview of 2009 found: "The recession has left its mark on the psyche of the Working Wealthy with a lack of confidence impacting their perceptions of wealth and appetite for risk. Whilst two in five (41%) say the recession has not had an impact on the amount of money they have to spend, almost an equal number (44%) say they are fearful of the future" (PN Newswire, 2009). But, observed Vanity Fair reporter tartly: "Most 60-year-old ex-Lehman Brothers bankers likely squirreled away enough to at least scrape by on a couple of million a year" (Shnayerson 2009, p.3). If they did cut back, it was in relatively minor ways: "Why should I pay $250,000 for a private plane," said one man to the magazine "when I can pay $20,000 to fly commercial first class" (Shnayerson 2009, p.1).…… [Read More]
Under such conditions, a withdrawal could be completed by 2010.
It is my belief that neither candidate is in a position to manage the economic crisis. For instance, both have made energy independence a strong component of their policies, yet energy independence is a decade or two away. This is a noble long-term goal but will not address today's economic issues. McCain's economic ideologies are rooted in 20th century economic logic. His reliance on the trickle-down approach fails to recognize that capital is fungible. Therefore, applying more capital to the top of the economic food chain will not necessarily increase wealth at the bottom. It may merely be investing outside the country if opportunities overseas are better, which at present they often are. Holding the line of taxes will not spur growth, nor will it reduce consumer debt. Moreover, he cannot balance the budget in light of his lack of…… [Read More]
However, the Act of Union in 1707 that combined England, Wales, and Scotland into the United Kingdom had a profound effect on the production of Scotch Whiskey (Beverage Testing Institute, 2007). The English government levied heavy taxes on Scottish whiskey, while lowering taxes on English gin (Beverage Testing Institute, 2007). This resulted in a boom in illegal stills across the country. Many present-day producers have their origins in these illegal operations. In 1823, the Excise Act reduced taxes on Scotch Whiskey to a level where it was once again a viable legal industry (Beverage Testing Institute, 2007).
Scotch whiskey was ingrained in the culture of Scotland. Whether they are malted, blended, or single grain concoctions, they are a part of Scottish history that is slowly becoming adopted by others around the globe. The whiskey market experiences periods of boom followed by periods of bust. The market has not been one…… [Read More]
Socially Innovative and Socially Responsible Commerce: Examination of Carbon Tax in Australia
In a November 8th 2011 report in the Australian Times it is reported that as the final hurdle to carbon emission tax was cleared by the Federal Government of Australia, "Prime Minister Julia Gillard avoided saying the passage of the controversial impost would mark a turning point in Labor's fortunes." It is related that a new polled demonstrated "a modest uptick in its primary support." (Australian Times, 2011) The new tax is geared toward a reduction in carbon emissions in theory however; it is likely that the carbon tax is in reality more focused on government receipts in terms of its revenue. This issue will be examined through the lens of theorists Senge (2000) and the Dynamics of Systems, Jenkins (2008) and value and identities, and einhocker (2006) theories and global commerce.
Carbon Tax in Australia: An Overview…… [Read More]
GDP went down due to weak domestic demand, which went further down after a decline. Somehow, it again rose by 0.1% in the first quarter and appeared to have pulled the economy out of recession. ut Portugal retained big trouble. In the last quarter of 2002, its GDP plummeted.8% from the third quarter and in the last quarter, it contracted by 1.3% from the previous year until the.3% in the third quarter of 2002. The economy continued to sag until the ank of Portugal itself observed the fall of business confidence to its lowest recorded level since the 1993 recession. Official unemployment rate increased to a high 49.6%, rising by 26.3% from 2001 (O'Flynn).
Unemployment was 6.7% in 2003, compared with 4.3% in 2002 (O'Flynn 2003). Labor unions in Portugal claimed it was more than 7.6% as against the 5% ceiling set by the EU, despite the fact that the…… [Read More]
fiscal and monetary policy.
On the most basic level, the primary difference between fiscal and monetary policy is that fiscal policy pertains to the actions of the federal government designed to influence the national economy through government spending and taxation while monetary policy refers to the actions of the central bank to govern the money supply. Tight or restrictive monetary and fiscal policy is used to curb inflation; a liberal monetary and fiscal policy is used as an economic stimulus (What is the difference between fiscal and monetary policy, 2002, As Dr. Econ).
2-Compare and contrast Keynes and Hayek
According to Keynes, it was sometimes necessary for the federal government to take a role in managing the economy, to correct the ebbs and flows of the business cycle. During severe recessions consumers became wary about losing their jobs, stopped spending money, and this further curtailed economic growth. Eventually, more and…… [Read More]
First, all efforts should be made toward reducing our reliance on fossil fuels instead of encouraging continued reliance on automobiles in the future. Therefore, the available funds should be used to develop alternate transportation methods such as modernized rail systems and even traditional public transportation systems that damage the environment and consume gasoline less than private automobiles on a per-passenger basis.
Second, we should be striving to reduce the trend of working in urban areas and living in suburban areas that developed throughout the 20th century in the United States. That is one of the reasons we became so dependent on automobiles as a nation in the first place. Therefore, the money should be spent on developing better, cleaner, and more efficient public transportation systems and on maintaining existing infrastructure such as bridges and tunnels that are in tremendous states of disrepair across the nation. Conversely, developing new highways is…… [Read More]
ewarding Work: How to estore Participating and Self-Support to Free Enterprise (Harvard University Press, 197), economist Edmund Phelps offers this plan to help the working poor: apply tax credits for "qualified employers" or hire disadvantaged people for "eligible jobs." Evaluate this plan in terms of market incentives, one of the ten principles of economics, to work and current welfare programs. Is the Phelps' plan an improvement over current government policies? Discuss.
Lowering a company's tax bill will generally always be effective in causing them to invest more money in expanding which usually means more hiring. However, it is not a panacea, as the recent economic incentives have proven. As of late, firms have received a number of tax cuts but there has also been the passing of the Dodd Frank financial reform bill as well as ObamaCare, both of which (ObamaCare in particular) is clearly making employers cool to hire…… [Read More]
U.S. Government Deficits
hy is it that the U.S. Government can spend more than it brings in through taxes and other revenue? hat are the specific reasons why the U.S. can consistently and constantly operate its programs and conduct official business while running a huge deficit? These questions and others will be reviewed in this paper.
The Deficit -- why and by how much is the U.S. In debt?
A May, 2012 article in the Economist quotes Republican presidential candidate Mitt Romney saying that the U.S. Government has "…a moral responsibility not to spend more than we take in" (Economist, 2012, p. 1). The article reminds Romney that if what he is saying is true then America is "…a thoroughly depraved and immoral country" because in 76 of the past 100 years "the U.S. government has spent more than it has taken in" (Economist, p. 1). In fact in 26…… [Read More]
She also clearly makes a stand against continuing to rely to any large degree on non-renewable resources and giving the scientific community more authority and right.
Clinton's platform is currently relying very heavily upon the idea of helping the middle class. Her campaign bus is currently touring Iowa with a slogan of "The Middle Class Express." She is actively seeking middle class support, and her platform is dominated by issues resolving to make those who currently feel invisible in the current administration. She is speaking to the idea that the rich are getting richer, the poor are getting poorer and the middle class is disappearing. The sentiment is a strongly held belief in middle America and the platform is strong, as it speaks to the current feeling of America.
If you place your mouse over the numbers next to Clinton's opening picture on her official website her position…… [Read More]
Fairness in Taxation Act of 2011 was introduced by Jan Schakowsky in order to restore tax fairness through establishing an income tax on federal income tax for individuals with an income of more than $1 million annually. The Illinois Congresswoman introduced the bill in March 2011 as a real solution to the country's revenue crisis at a time when Congressional epublicans were proposing extra tax rates for wealthy and middle- and low-income people. These epublicans were proposing such measures in order to help in footing the bill of the recession and the deficit. One of the major things that the bill seeks to do is to amend the Internal evenue Code to change income tax rates and to amplify the tax rate on people and married taxpayers who earn more than $1 million annually.
Summary of the Fairness in Taxation Act of 2011:
According to the current taxation policy, the…… [Read More]
Fiscal and Monetary Policy
How is a recession defined? Is the U.S. currently in a recession? Explain.
The National Bureau of Economic Research (NBER) is widely recognized as the arbiter of starting and ending dates of U.S. recessions (Burtless, G. April 19, 2010). As such, NBER indicates, recessions start at the peak of a business cycle and end at the trough; and are a significant decline in economic activity spread across the economy, lasting more than a few months, normally visible in real GDP, real income, employment, industrial production, and wholesale-retail sales (National Bureau of Economic Research. 2011). The last U.S. recession, coined the Great Recession, ended in June 2009, 18 months after the economy began sliding into a downturn in December 2007 (Murray, S. September 21, 2010) according to NBER.
While more than eight in 10 Americans think the economy is in another recession, according to a new CNN/ORC…… [Read More]
U.S. Economy Since orld ar II
economy is the largest in the world but has the most unequal distribution of wealth among all the developed countries of the world. The major reason for this inequality is that since the Second orld ar most U.S. governments have tended to favor the wealthy and the corporate sector while formulating their economic policies. Such "rich friendly" policies have become more pronounced since the early 1980s and continue to this day to the detriment of the society and the economy. This essay gives an overview of the post-orld ar II U.S. economy and outlines the ways in which various U.S. administrations have enacted policies favoring the corporate sector and the wealthy.
The 18th century British economist Adam Smith advocated the benefits of a Laissez faire economy in his The ealth of Nations (1776) by proclaiming that a "free economy" in which every individual…… [Read More]
financial condition of a hypothetical town; Swobodaville. The paper analyzes the town's revenue structure, and expenditure profile among others. In addition, paper outlines how public organizations within this town use data from audits and assessments to increase their effectiveness.
There are several factors that are likely to influence the town's revenue structure. These factors are economic growth, taxations among others. The town has taxation waivers which may have led the increase in revenues from the first to the fifth year. There is a likelihood that the town has been having an increasing revenue base which has led to the increase in revenues. The level of government spending has steadily risen. The increase in government spending on state-provided goods and services including public and merit goods is likely to result in increased revenues for the town's households (Kirchler, 2007). Besides, incorporating revenue neutral individual income tax change that integrates…… [Read More]