The Pros And Cons Of Budget Deficit

One claim used by the opposition is that it will balloon the deficit. A budget deficit is defined as an excess of expenditure over revenue. Or in simpler terms, it is when the government spends more than it receives in taxes. In the article titled “The GOP tax plan got a triple whammy of brutal reviews” by Bob Bryan addresses this claim. One report being used by opponents to the current tax reform bill as stated in the article is by the University of Pennsylvania which sates “The Penn model found that the bill would increase the federal deficit by $1.327 trillion over the first 10 years after it becomes law” (Bryan 13). Another study being used is one from the Urban Institute and Brookings Institution's Tax Policy Center which says “The nonpartisan

In the article “Five Ideas for Simplifying the Individual Tax Code” Scott Greenberg says “When households file their individual income tax returns, they are allowed to claim a standard deduction of $6,350 for singles and $12,700 for married joint filers” (Greenberg 3). The doubling of the standard deduction will allow many Americans to take that deduction consequently saving them the time-consuming task of figuring what exemptions they qualify for cutting tax preparation time. “The process of deciding whether to itemize deductions is relatively complex. Households must track and record their relevant expenses throughout the year, consult IRS rules to determine which expenses can be deducted, and determine whether their potential itemized deductions exceed the standard deduction amount” (Greenberg 4). This does assume more people will take the standard deduction which I would concede that many people will do as it is the simpler option of the two.
A claim that is also used by the opponents of tax reform is that tax reform will benefit only the wealthy. From their point of view the tax cuts being proposed currently benefit the wealthiest Americans and corporations. While it is true that wealthy individuals will benefit from tax reform like everyone else will they won’t be the only

In his article entitled Indiana State Senator: Tax reform will create jobs. Indiana's experience proves it” Indiana state Senator Brandt Hershman he argues this claim. “Over the long term, lowering tax rates would not only reduce the incentive for large corporations to engage in offshore tax shelters, but would also reduce the tax burden on smaller domestic businesses, giving them additional capital to invest in operations and workers” (Hershman 9). It will also attract companies to the US wanting to take advantage of our new lower tax rates in the article an example from Indiana is used but it could be applied the same to the country “While Indiana lowered business taxes by nearly 50 percent, our neighbors in Illinois increased them. The predictable result – as of 2017 more than 50 companies have relocated operations from Illinois to Indiana, bringing jobs and enhancing our state tax revenue so that we can invest in improving our roads, schools and other priorities” (Hershman