Tax relief for the rich would allow them to spend and invest their money. This spending would fuel the economy and create new jobs. Reagan believed that these tax cuts would ultimately generate more revenue for the federal government. Congress was not as confident as Reagan, but they did approved a 25 percent
This economic program was planned to promote economic growth, but instead it brought upon more economic burden upon the lower urban social class (Foner 2017). Reagan’s plan to tax the wealthy less to improve the lives of the poor did not pan out well to
Priti Patel William Jefferson Clinton William Jefferson Clinton was a very smart person that changed our economy for the better. He was born on August 19th, 1946 in Hope, Arkansas. As a boy Bill had a rough childhood. Bill’s father had died in a car accident before Bill was born, and his mother and grandparents didn 't have enough money to support the family after world war 2 had ended. In his early twenty’s Bill attended Georgetown, Oxford, and Yale university with a major in law.
Bill Clinton was also an American politician who had served as the 42nd President of the United States. He had served his time from 1993 to 2001 and throughout his time in office, he had both aided yet negatively impacted the United States, which can be seen through many acts and bills he had signed, both domestic and foreign. Domestic accomplishments of President Clinton firstly included cutting the tax, similar to what Reagan had done. Clinton had signed the Omnibus Budget Reconciliation Act, cutting taxes for millions of low-income families. He had also cut tax for almost 100% of small businesses and raised the tax on the wealthiest taxpayers.
4 On August 13th 1981, Reagan signed the Economy Recovery Tax Act in to law.1 In my opinion this act has helped the blue collar American as well as small business owners by lowering their percentage of income tax pay in. On the other hand, it hurt big business and created a double recession scenario. The common man was making more money but was forced to spend more money on the on the same products to allow big business to gain profit.
“The policies of the Reagan and first Bush administrations, which openly favored the rich, abetted a secular trend already in motion, causing inequality to increase measurably between 1981 and 1992.” (Loewen, 215) The wealthy already had their advantage when they gained their wealth. The wealth they had helped greatly in the process
When the government spends, there is more money flowing through the economy. The last chart shows the share of taxes that the top 1 percent contributes to our economy. The tax shares of the top 1 percent are around 20 percent. While the top 1 percent earns about 40 percent of the nation’s wealth, they’re only contributing 20 percent of what they’re earning back into the economy. This information is relevant because the share of taxes for the top 1 percent is not proportional considering the amount they’re earning.
During Clinton’s presidency, the crime rate steadily fell, finally reaching a 26-year low. He got funding for 100,000 police officers to be added nationwide. Clinton raised taxes on wealthier citizens to 39.6% from 28%. This helped lower national debt. Clinton negotiated peace in Northern Ireland, got former Soviet states to reduce nuclear storage, and he
Trump’s Tax Cuts will continue raising debt and could have a disastrous outcome on the economy. While Trump and his supporters claim that these tax cuts will help grow the economy, many economists are rejecting these claims citing the Bush Tax Cuts ("The most compelling criticism of Trump tax
Also, the wealthy is known to be rich, so as they collect more and more taxes, they will spend it on stuff we don't need; instead of paying it on taxes. For
In conclusion, both presidents had similar ideas in their tax policies of cutting and reforming the way taxes are done and spend. In the end the way they handled the spending would determine the end result of lower taxes and lower inflation. The thought of helping the middle class and bringing tax equality to everyone would really bring fairness those who struggle to pay the high amount of taxes. In the end, taxes will always be a topic that many disagree and agree on depending on how they view it whether in the lower, middle or upper
New Presidents like to change things in America. For instance, President-elect Donald Trump has many things he wants to change. For the most part, Trump's plans help the upper class more than any other class in the United States. There are some positives and negatives on how it affects the upper class. One positive being more money in their pockets.
What’s more, specifically, the rich have gotten a lot richer. Almost everybody who talk about it says that economic inequality must be reduced. There a few causes to the wealth gap that are easily determined, examples are corporations that partake in the following actions: gender, unfair exchange, cheap labor elsewhere and other benefactors. Other causes include education and the differentiated amounts of taxes paid by Americans in different economic levels.
Why must the rich pay more tax to help the poor? Although taxing more on rich seems unfair for the rich, it is necessary that rich people should pay more tax and the amount they pay are based on their incomes. First of all, the important reason that can be presented is that the rich people have utilized the public system more. As Elizabeth Warren said, "There is nobody in this country who got rich on his own. Nobody.”
Many people are strongly debating whether or not the rich should pay higher taxes. I believe it should be that the rich do pay higher taxes. When times in the economy are rough, the government needs to look consider at how they could bring in more money. Charging the wealthy higher taxes could be a strategy the government could use., and the wealthy people are the ones who could afford it.
