Government Regulatory Considerations

I would advise to accept the promotion. Even though taking this promotion would bump him up to the next tax bracket, I would reassure my friend that because our tax code is marginalized, “you’ll never take home less than you earn” (Video Engager, 2016).

A marginalized tax code guarantees that you only pay income tax on the amount of money that you make above the tax bracket that you are in. this assures that you will not take home less income because of a higher tax bracket. For example, if you are currently making $47,000 a year and you receive a promotion and receive $49,000 a year, this will bump you up to the next tax bracket. Because of the marginalized tax code of the United States, your taxes will total $5,469 at a 25% tax rate, rather

67). A major way that the government affects economic activity is through regulation. The government creates regulation guidelines for businesses and enforces them through independent regulatory commissions such as the FTC, the FCC and the FDA (Cochran et al. 45-46). These commissions enforce the guidelines that are outlined in congress in order to ensure safety and fairness among companies in the economy. Other ways that government intervention can affect economic activity is through fiscal policy, which has to do with taxation and monetary policy which is the regulation of inflation, interest and money supply. Though many citizens view government intervention in economic affairs as a negative action, government involvement is responsible for positive impacts that many people do not even consider. For example, from a health perspective, the Food and Drug Administration (FDA) established by the government is responsible for enforcing food and drug safety guidelines. This helps to protect the health of citizens by preventing businesses from “offering unsafe goods” by requiring that “they be produced according to certain safety standards (Cengage 2016). Another positive aspect of government intervention is the role of government in business success. The government supplies businesses with the proper infrastructure, such as “roads, highways and communication systems” (Cengage 2016). I believe that the level of government involvement in the economy that currently exists in the United States is sufficient. Our government is very effective in creating regulations that apply to many different aspects of business and ensure the health of its citizens, as well as occasionally intervening in times of crisis. I do not think that more government involvement is necessary because in the principles of the free enterprise system, the economy is built to be