This website uses cookies to ensure you have the best experience. Learn more

Tax Cuts Of 2000/2001: Good Or Bad For The Economy. How Have The Bush Tax Cuts Affected The United States Economy? Includes A Bibliography.

1051 words - 4 pages

Tax Cuts of 2000/2001:Good or Bad for the EconomyThe Bush tax cuts have not proven to be good for our economy. Although, we had a budget surplus our government jumped the gun with the tax cuts. These tax cuts will decrease the surplus extremely quickly and this money should be going towards most of the governmental run programs that usually are geared toward the moderate to low income people. Bush did not anticipate any future events that could lead us right back into a budget deficit and this has become the biggest problem our economy is facing today.Taxes are necessary for the administration and funding of governmental organizations, as well as construction and universal infrastructure services. Taxation presents positive and negative characteristics within an economic system. As history presents, most taxes have been geared toward the middle to lower classes with the upper classes receiving many tax breaks. With tax cuts for corporations, estates and the top one percent of high incomes all the little people will be left out in the cold. By demolishing the entire budget surplus, government programs, such as social security, will be neglected once the baby boomers begin retiring (Friedman, et al May, 2001, p 1). As Mark Breslow states, "The corporate income tax, which is relatively progressive, has been replaced by taxes that are a particular burden on people with moderate and low incomes. The cut of the alternative minimum tax has done nothing to help put money where it is needed, in the moderate to low income pockets. These people would definitely help stimulate the economy to help get us out of the recession we are falling into.John Miller points out, "that only two percent of estates are actually taxed and even the well off have little to worry about (Miller 2001 p 59.)." This still does not help the situation with the moderate to low income taxpayers. This group is being over taxed because they can never make enough money to meet the upper one percent of income that would be a benefit to them. This group also does not participate in the decision which does not help their situation.Robert S. McIntyre argues that, "The individual tax changes, which includes a ten percent decrease in capital gains taxes, are sharply tilted towards the wealthy (McIntyre, 2001 p. 1)." According to Joel Friedman, "some fifty-five percent of the stimulus package benefits are going to the wealthiest one percent of taxpayers (Friedman, et al November 2001 p. 1). This is very discouraging but it seems that if the people really cared about or was fully informed of the results of these tax cuts there would be severe rallying in the streets.Bush's tax cut, or stimulus package, has only been geared toward the upper class and this class has a very low marginal propensity to consume and therefore will not contribute to our failing economy (Friedman, et al November 2001 p. 1). This group usually does not change their spending patterns based on a change in their income. On...

Find Another Essay On Tax Cuts of 2000/2001: Good or Bad for the Economy. How have the Bush tax cuts affected the united states economy? Includes a bibliography.

The United States Should Not Impose a Flat Tax

1569 words - 7 pages A flat tax is a system in which a person’s income is not a factor and a single rate is set for all taxpayers. This kind of tax includes no deductions or exemptions. The United State’s current, progressive tax is very different from a flat tax, the most noticeable reason being that a progressive tax takes different percents of income depending on what income bracket a person falls into (Investopedia). During 2010 in the United States

The United States Economy: The Slow Recovery of a Nation

817 words - 4 pages The United States Economy: The Slow Recovery of a Nation Content Introduction…………………………………………………………………………... page 2 Monetary Policy……………. ……………….……………………………………… page 2 Recovery…...……….…………………………………………………………….….. page 3 Conclusion……………………………………………………..…………………...... page 3 References……………………………………………….……………….……….….. page 5 The United States Economy: The Slow

How has globalisation affected the world economy?

2802 words - 11 pages How has globalisation affected the world economy? Discuss.Globalisation what is it? How has it affected the world's economics? How will it continue to affect the global village? Is anyone being adversely affected?Globalisation - is the movement of goods, services and money capital or investment across international boundaries and in this way becomes a predominately economic phenomenon sweeping the world. Throughout which, what were formerly

Immigration affected the economy of the United States during the period of the civil war? (1850-1880)

2906 words - 12 pages downwards after 1855. During this period of time which was from, the Democrat Stephen A. Douglas proposed a bill called the Kansas-Nebraska in 1854 which allowed good farmland for settlements.(Wikipedia,2006) This also helped the construction of the railroads. This bill encouraged people to immigrate from international countries or purely migration within the United States to the new locations for settlement. With open farmland to settle, people are

Smoking: Good For The Economy?

1105 words - 4 pages Smoking, when one hears it they automatically thing death, but imagine being in a world where smoking was actually good for the economy. What would the person's expression be like? Smoking is one of the most harmful killers in the United States, but can it be good for the economy? Well as matter of fact, it may be unbelievable to some, but smoking is actually very good for the economy. Many studies have shown different types of facts of how

United States Tax Policy

2474 words - 10 pages . But in the eight years Reagan was in office, did cutting taxes actually work to improve the economy or the poverty level in the United States? No. Although the economy expanded as a result of the 1986 Tax Reform Act, the state of the economy declined as the tax cuts created huge deficits in the federal budget, followed by two economic recessions spanning from 1981-1982 and 1990-1991 (see table 1.3). As for poverty rates, the national poverty rate

The Impact of Minorities on the United States Economy

1865 words - 7 pages IntroductionThe United States' economy fluctuates from one day to another. Several factors contribute to this occurrence. Everyday new businesses open and close, immigrant workers enter the U.S., and taxes are reassessed. These are just a few examples of constant changes among many others.Are minority businesses good for our economy? According to research minority owned businesses contribute a great deal of money to our economy, and without them

The Current State of the United States Economy

2065 words - 9 pages factors within each area that are at times difficult to predict. The steady decline in unemployment, steady growth in expectations, consumer income rising, and interest rates remaining low are good signs of a healthy economy. The United States policies using both Keynesian and Classic models have shown to be effective in bring the country back from the brink of a major depression. Many Americans are not able to see past what is happening in

The Downward Sprial of the United States Economy

944 words - 4 pages US infrastructure would collapse, Americans would become a hand me down nation with a high unemployment rate due to job loss. Having borders open keeps these scenarios from happening. Foreign trade allows for profit and growth and results in more jobs for our citizens. In reality “American real incomes are nine percent higher than they would otherwise have been as a result of trade liberalizing efforts since the Second World War” (United “25th

The Effects of Tax Havens Can Have on a State

3386 words - 14 pages financial system in which to hold their money with little to no taxes on income. Second, states may have laws or administrative practices in place that ensure the anonymity of personal financial information. Lastly, a lack of transparency in the operation of laws and a lack of consistency in how they are enforced. This may include secret dealings, negotiated tax rates, or off the book deals given to one individual or foreign company but not

How the 2008 Financial Crisis Affected the Economy

817 words - 4 pages lowered from 2000 – 2003 due to the fear of deflation as a result of the dot com bubble and the September 2001 terrorist attacks. Higher than expected United States account deficit would peak around the same time as the housing bubble which burst more so in 2008 which lead to foreclosures on people’s homes and less borrowing going on such items as homes. Tax rebates fashioned by the law were paid to individual U.S. taxpayers during 2008

Similar Essays

Should The United States Of America Have A Flat Tax?

1480 words - 6 pages code has a complicated amount of tax credits, deductions and exemptions. Recently some Republican presidential candidates are proposing to replace the nation’s income tax with a flat tax. Republican presidential candidates Herman Cain, Rick Perry, and Newt Gingrich all have their own proposal for a flat tax. Their plans differ from one another in several ways such as how high they set the rate; how big they make the exemption, how many other tax

Tax As A Means Of Control And Stimulator Of The Economy In The Uk. Is It A Good Idea To Fluctuate The Tax Rates For Stabilizing The Economy? Is Tax Necessary For A Country’s Growth? Is Green Tax ...

9199 words - 37 pages and the new green economy'.Basically a reduced rate of tax helps rich people more than the poor or people with less income as of course the major proportion of tax revenue is collected from the citizens earning high income. On the other hand, much of the government spending is for the citizens who have lower or no income. If the government cuts spending to neutralise the budget, the people who are dependent on public finance will be affected very

Government Spending Versus Tax Cuts: How Best To Stimulate Growth?

1603 words - 7 pages the theory, we have provided our conclusion weather tax cut is better for the stimulation of growth or Government spending is? This report explains the big macroeconomic debates of the present times. It seeks to explore the debate within fiscal policy itself between tax cuts and government spending. We have tried to explain the argument through some theories and through some data collected from Indian economy and provide our own conclusion

Ronald Reagans Tax Cuts, And Foreign Policies

1361 words - 5 pages tax payers received these cuts which helped to spur the economy. The cuts were taken over three years with a 5% cut in 1981, a 10% cut for 1982, and in 1983 another 10% cut.Reagan's call for extensive changes in the federal income tax laws helped bring about passage of the Tax Reform Act of 1986. In 1986 Reagan introduced the Tax Reform act of 1986. The tax reform act of 1986 chopped taxes, and indexed taxes for inflation as well. During Reagan's