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What Fallacies Does Taxes Make In The United States

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Towards the beginning of the class, I had not thought enough about taxes and the more intricate aspects of how it affects the government as well as citizens in the United States. As I continued to ponder on what difference fluctuations in taxes, make in the United States, I realized that there are many fallacies that involve the implementing of tax cuts. One major economic fallacy is the belief that lowering tax rates doesn’t allow the government to have a greater influx of money. Many people do not look deeper into the effects of tax cuts and taxes in general. Specifically, the economy will go unaffected unless lower income earners receive a tax cut. Not much of a difference was examined when the wealthy receive a tax cut because growth …show more content…

Many people support the idea that tax cuts only help the rich because services that are created for the poor and supported by taxes have the potential to be cut. Others believe that by allowing that tax money to instead go to the people, spending will increase as more money is put into the pockets of average citizens. Thus, the economy will prosper. It is after seeking out a balance between these two opinions, that I was able to focus on the fact that where the tax cuts are made are fundamental in how the economy reacts as a whole. This shows that depending on where the cuts are made, the economy can either suffer from a budget deficit or an increase of sovereign debt or it can …show more content…

Many people fail to look farther than how aspects of society benefit themselves. Nothing is free. Where economic the economy is concerned, someone has to, in the end, pay for the item or service. This is important to know in view of the fact that what we do affects others and can even cause us harm in the future without us realizing it in the moment.
In school, for instance, at least once a week, we hear the words, “Free food in the city room.” This food has to be paid by someone, whether it is paid by our tuition, fundraising or some other method the school or clubs utilize in order to raise money. Someone always buys it. Throughout society, especially in college communities, this can be seen on a daily basis and actually causes us, as citizens, to submit to this passive way of viewing life and

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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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Why should the poor and rich have to pay the same amount of taxes if they make extremely different incomes? Brooks focuses on the social and migration problems of progressive taxing and doesn’t apply his thought to the economic issues, as he

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In the article “The New Normal” by David Brooks, he argues that the countries future will depend greatly on how the government makes budget cuts. He points out three principles that should be considered when making budget cuts. The first principle is to make everyone hurt, or to make cuts widely and fairly, not just in couple areas. In addition, Brooks claims that the government should cut more from the old to invest in the younger generation. He says that the government should invest more money into education and early-childhood programs.

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Larry Bartels, Paul Pierson and Jacob Hacker seek to explain why the general public seemingly favored the 2001 Bush Tax Cuts, a policy that disproportionately favored the wealthy elite and reduced funding for social programs while increasing the national debt, even though the tax cuts were in direct conflict with the economic self-interest and policy preferences of most voters, such as: government programs and deficit reduction. Bartel’s primary argument centers on pervasive misinformation and/or ignorance of the electorate surrounding the 2001 Bush Tax Cuts. Hacker and Pierson cite elite manipulation as the primary reason for the public’s perceived “support” of these cuts; altogether, both seem to agree that rampant misinformation or the absence

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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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Dependency. This word is straight from Hades according to Ayn Rand. She believes very strongly in ethical egoism, which is the ideal that people need to look out for themselves and not depend on the government or anyone else for help. She very clearly portrays this warning in being dependent on the government and others in her book Anthem and in her interview with Mike Wallace. Her views on helping the less fortunate through the government and other organizations are no exception to these ideals.

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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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The Berlin Wall is one of the most well-known symbols of the Cold War, physically representing the battle between communism and capitalism. Associated with it is an explanation as to why the communist system had a need to control what came in and out of its land. Building a literal wall through the city of Berlin, Germany, seemed to be one of their attempts to keep everything under their control. While the wall started out as a rather innocent border between territories, it eventually escalated into a nearly impenetrable barrier between families and friends alike. This division of a once united city started forming after the end of World War Two; regions began taking sides with one economic system over the over, bringing the rivalry between capitalism and communism into light.

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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

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President-elect Donald Trump has many goals for his time in office, including changing, what he claims to be only a slightly different form of the taxation system already being used in the United States. His goal is what he believes will benefit the entirety of the country, yet the people who will have the most change in the percent of taxes being paid will be the upper class, which will pay up to ten percent less money in taxes than they are currently. Keeping in mind that this man is part of the one percent of the population who holds most of the wealth, one can only wonder if there is some type of bias happening here. Although he states that the lower income population will be seeing a benefit as well, there is still a relatively small

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1503 Words | 7 Pages

The documentary, Inequality for All, mentions when Ronald Reagan was President of the United States, he brought down the tax rate on the rich from 70 percent to 35 percent. However, most of the money the rich make are from capital gains. So instead of 35 percent, they are actually being taxed about 15 percent. This is the time where the nation’s income kept rising as the average pay of the middle class American froze.

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Income Inequality Income Inequality or “wage gap” is a big topic for freedom fighters and liberals for the simple fact that it isn’t equal for everyone. Because the wage gap is so prominent it's one of the biggest “facts” that discrimination is still apart of everyday American society. The wage gap from these radical interest groups think the economy is get a dollar take a dollar instead of a free flow economy. This misguided idea of the economy is absolutely not true and isn’t at the fault of the Government, but the people.

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Here’s the deal, the government is debating whether federal income tax rates in American should be raised or not. Raising federal income tax rates in America generates resources rapidly, offsets cost of lower families, and creates a savings income. Raising tax reduction on the American people will contribute towards

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Such wealth discrepancy in this country is unacceptable. It takes 400 people from the top 80 percent to make what one person makes from the top one percent. Despite this, people still believe that people in the middle class should be similarly taxed than the top 1%. When the tax rates were at the high rates of 90% in the 1950’s and the early 1960’s the stock market and the American economy was booming. Let’s raise the tax rates on the rich and let’s make America the economic powerhouse of the world it once

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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.

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