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The Pros And Cons Of Tax Reform

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In this essay, I will focus on the tax reform bill, which the House of Representatives passed on November 16, 2017 (Fox & Walsh, 2017). The bill made a number of changes to the individual and corporate tax codes (Kaeding, 2017). This tax bill is a major overhaul of the tax codes, more than three decades and was the result of a lot of negotiations between both parties and passed with bipartisan support (Fox & Walsh, 2017). Thirteen Republicans did not support the bill and none of the Democrats supported the bill (DeBonis & Paletta, 2017). The income tax system in the United States is the most progressive in the world (Barone, 2017). A progressive tax means that those who have a high income would pay more taxes or a large percentage of their …show more content…

Barone (2017) thinks that the republican tax bill is harmful because they make federal taxation less progressive. The Tax Policy Center analysis that the bill will be a benefit for those top 0.1% of earners by an average of $278,000 by 2027. But bottom 20% of earners will get only a $10 in cuts in the average (American taxes, 2017). Moreover, the Tax Policy Center found that half the benefits of the bill go to the top 1 percent by 2027 (Logan, 2017). In addition, the Tax Policy Center estimate that the tax reform bill would not produce enough economic growth to fully offset the more-than-trillion-dollar revenue losses produced by the measure (Jagoda, 2017). The Joint Committee on Taxation estimated that many low-income earners would end up with tax increases, not tax breaks (Mascaro & Puzzanghera, 2017). Also JCT estimate that most Americans would pay the same taxes or even a lower rate until 2023, then for the next five years 92% would pay either less or nothing as they pay the same. In 2023 it would change, only 40 percent of Americans would pay less and 22 percent would pay more (Long, 2017). Some have a concern about the tax bill's potential additions to the federal deficit (Perticone, 2017). …show more content…

Republicans would like the flat taxes but they do not support a VAT taxes as they think it would expand the government (American taxes, 2017). Barone (2017) said that system can be more progressive with a more progressive income tax rates or raising a specific amount of income as people earn, but it would be at the risk of tax avoidance. It can reduce economic growth like having less of taxes would increase it (Barone,

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Contributor to Forbes, Tony Nitti identifies which classes and types of people will benefit from the recently passed tax bill. At the time the article was written, the bill had not yet been signed into effect by the president. According to Nitti, “Tonight's victory belonged solely to the Republicans. The Senate passed the bill without a single "yes" vote from one of its 48 Democrats, but then, this was the plan all along.” He also pegs the winners as corporations, the richest one percent, and the middle class- “for now.”

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Brooks provides great explanations for his opinions, but opens his article by slamming the Democratic Party to their feet. His article is directly placing Brooks on the opposing side of those who support progressive taxing. In my view, I believe progressive taxing is the best option to balance the economy, help the lower classes (those with horrible financial issues) and allow the upper classes to participate more in the economy we are experiencing. I believe that because the wealthiest of classes are making over one hundred times the incomes of the poor, they should have to pay higher taxes.

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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.

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history but it provokes an angry reaction from the American Left. The bill reduced personal income tax rates by 25 percent in three annual increments, cut capital gains and estate taxes, and reduced business taxes.” The illogical point was cutting taxes as the same rate for everyone. While several industries and high income earners received numerous benefits, low income earners still suffered financial burden because of “trickle-down economics.” In fact, federal income tax rates cut significantly for the wealthiest 20 percent of taxpayers.

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Some people like income tax, and others do not have an opinion on it, they just view it as a lawful obligation. However, the majority of Americans dislike income taxes and are not fond of the IRS. According to a study made by Pew Research Center, this is completely true. Only 45% of Americans favor the Internal Revenue Service,(6) showing that the remaining 55% do not like the idea of paying taxes(6). 53% of Americans claim that they are fairly taxed, and the rest of Americans think that the tax rates are unfair.(6) While some Americans are complaining about the unfairness of their tax bracket, 64% are also claiming that large corporations are not paying enough income tax.

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Some people with be mad about getting taxed more and some people wouldn’t mind getting taxed more as long as it is doing something like helping someone that needs help or saving their lives. “About 800 000 people commit suicide every year… Mental disorders and harmful use of alcohol contribute to many suicides around the world. ”(www.who.int) The people I think that won’t like getting taxed the most are people like Lennie and George who are struggling with money as is

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Historically, periods in which tax rates were higher produced inadequate and stagnant economic growth. Politicians and lobbyists propose that taxing the upper classes will lessen the burden on the middle and lower classes, which stimulates the economy. This is not only false, but basic critical thinking reveals that when the “rich” have more money in their pockets, they are more likely to invest or raise wages if they employ individuals. One common misconception of tax rates is that high tax rates generate more tax revenue, and lower tax rates generate less tax revenue. On paper, this would make sense.

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1. The Republican effort to write a once-in-a-generation bill to cut taxes appears to be the last, best hope for the fractured party to find some common ground. But it’s also “bit like having a baby to save a failing marriage,” our reporters have concluded. Tensions abound, including over sharp reductions in how much Americans may save in 401(k) accounts.

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But repealing the taxes that fund the bill would also reduce net revenues by $631 billion in the same time period. The net effect would be a $137 billion increase in the federal deficit from 2016 to 2025. There would an also be about an 18 million fewer individuals with non-group coverage and 14

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One of the arguments used is that we could regulate and tax the 1% income because that would be “fair” but these numbers show how harmful that way of thinking is. 18% of taxes for the “bottom” of the bracket which is around 20% of the U.S population.

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Those who want guns will still be able to acquire them. The tax cutting standpoint is a classic example of a Democratic vs. Republican argument. Like most Republicans, Vinick supports tax cuts for all, the rich and poor alike. To ensure a balanced budget while cutting the taxes, he plans to decrease Congresses’ allowance. Santos, on the other hand, will not cut the taxes.

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That is not reducing the tax rate, we’re just making the middle pay more than the rich, and right now that is what is exactly happening. I know that most wealthy people work hard for their money, but we have people in the lower class barely getting by while the wealthy people throw around hundred dollar bills and don’t care about what anyone else thinks. They waste their money on things they don’t need while people in the lower classes struggle everyday. People that have financial disadvantages live paycheck to paycheck while the wealthy people just walk around with lots of money that they’ll waste on things they don’t need such as gold marbled tiles or million dollar perfumes. The least they can do is give a little back to the

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