Tax Reform Essay

1274 words - 5 pages

Tax reform has undergone much debate in the political stratosphere recently. The tax system has been stigmatized because of a multitude of reasons that include corruption. Additionally, tax reform is a very complex issue. In addition, there has been an abundance of negotiations in Congress to pass some type of tax reform. Despite these talks, actual action has remained stagnant. This topic clearly reflects the collective action principle and the policy principle due to failed tax reform negotiations and the outcomes of various legislation.

Taxes in the United States include payroll taxes, property taxes, sales taxes, and a multitude of others. These taxes may be imposed on individuals, business entities, estates, trusts, or other forms of organizations. In general, there is a lot of inquiry on the current tax system. With endless loopholes, a regressed economy, and corruption there has been widespread anger on the current structure of taxation. Consequently, the wealthy have managed to become even richer despite the economic crisis. Furthermore, many taxpayers in the upper class have found loopholes to avoid substantial taxation or otherwise known as tax evasion. (Stewart 2013) Tax evasion has only grown over the years and with the national debt has become a major issue. What is more, is the intense complexity of the entire taxation process. Addressing all the issues and problems regarding the taxation structure is a meticulous and arduous process. With this in mind, politicians from both parties have tried to address individual issues within the taxation paradigm. Being that the United States has the highest corporate tax in the globe, politicians have tried to change policy regarding taxation on businesses. (Sullivan 2013) However, with so many preferences negotiations have left policy-making for this topic static. With so many issues respecting tax, politicians and legislators have been pressured to bargain and create tax reform.

Policy negotiations regarding tax reform have been at a stalemate. Democrats in general, demand further tax increases on the rich while Republicans do not. Moreover, Republicans support major changes to Medicare and Social security and Democrats do not. Subsequently, both parties in Congress agreed to not try for a long rem deal to reduce the growth of debt in America. Behind this political curtain, the true reason both parties will not compromise or take action is interest. Many Republicans are no more interested in voting to reduce Medicare and Social Security benefits than Democrats are, lest they threaten their party’s big advantage among older voters who dominate the electorate in midterm contests. Democrats are no more eager than Republicans, with control of both houses of Congress up for grabs, to vote for the large revenue increases that a grand bargain would entail. They do not want to limit popular but costly deductions like the Simpson-Bowles fiscal commission have proposed. Negotiators are struggling...

Find Another Essay On Tax Reform

Why the Flat Tax is Better for America Than the Income Tax

1576 words - 6 pages no longer be tax penalties or tax preferences granted. The existing loopholes would disappear and all taxpayers, all income and all products would be taxed the same. Tax reform would increase income. If people get to keep more of the money they earn, they will want to earn more. Currently, some people don't feel like it is worth working. They feel like the costs of working don't outweigh the benefits. Lower tax rates increase the desire in

Taxation System in Bhutan. Good or Bad?

1693 words - 7 pages revenue was used for the public purposes (Tax reforms, 2008). Ministry of Finance (2012) claims that Tax system in Bhutan before 1960 were mostly in form of labor contribution. However, taxes in kind were imposed based on land size, property, business income and consumption of goods and services. First reform in tax system took place in 1989 with principles to: develop a coherent and rational tax system, establish a system of fair taxation, and

The Roles of the National Budget

657 words - 3 pages Indonesia even tax exemptions are extensive based on report on Observance of Standards and Codes-Fiscal Transparency Module of Indonesia by International Monetary Fund in 2006 and assessment in Open Budget Initiative report from International Budget Partnership (Burton & Stewart, 2011). Moreover, based on recommendations to tax reform from OECD for Indonesia, the government should consider undertaking publish estimates of tax expenditures, primarily

Tax Reformation Common Ground

1549 words - 7 pages The tax policy in the United States is very confusing. When the tax policy was originally written in 1913 it was four hundred pages. Now, over the past ninety one years, that tax policy has evolved to over 72,000 pages. Since the tax code has become so lengthy and nearly impossible to understand, the topic of tax reform has been in the minds of many. Although, most barely think about tax reform until tax season. It is a controversial subject due

Flat Tax System

2264 words - 9 pages dramatic reform and are reaping enormous economic benefits” (Mitchell). Despite the facts shown that flat tax has helped turned these nations into wealthy regions, the United States is still extremely reluctant in implementing this form of taxation. Besides the countries named above, there are also a few countries who are proposing the implementation of flat tax. Australia is one of those countries and has been proposed by the current prime minister

United States Tax Policy

2474 words - 10 pages recession, deplete the revenue coming in and create a budget deficit. In order to regenerate money coming in and replace the deficit, the government calls on money gained from taxes. What happens when tax money is already appropriated to other programs? A tax reform. A tax increase has many times been the government's remedy to a budget deficit; however, this puts a strain on the taxpayers. Of course the financial burden is not equal across the board

Flat Tax

2183 words - 9 pages ” (Wanniski). “Nations such as Estonia and Slovakia are widely viewed as role models since both have engaged in dramatic reform and are reaping enormous economic benefits” (Mitchell). Despite the facts shown that flat tax has helped turned these nations into wealthy regions, the United States is still extremely reluctant in implementing this form of taxation. Besides the countries named above, there are also a few countries who are proposing the

Why people pay tax

1281 words - 6 pages Current Situation of Hong Kong Tax System In current situation, Hong Kong has to find a new source of government revenue to remain the stability and sustainability. The most serious factor that urges the need of reform is narrow tax base. Hong Kong are too relay on a several kind of taxes, which are Salaries and Profits Taxes, property-related taxes and non-tax income derived from land sales and investment earnings. This makes Hong Kong

Negative Causes and Effects of Health Care Reform

1240 words - 5 pages Negative Causes and Effects of Health Care Reform (Obama Care) With the Health Care reform (Obama Care) passed as of March 21, 2010 the health care system is now on the wrong track and will begin to expand government spending in all aspects of American's health care. Therefore it will hurt the quality of care for patients, lead to medical bankruptcy, tax inflation, and physician shortage. Studies at George Mason University developed a

Are tax cuts beneficial for improving an economy especially after a recession - Intl 102 VCU - Research Essay

2081 words - 9 pages economy with tax cuts (after a recession) isn’t even tax cuts, its tax reform. The best example which republicans can only dream to replicate, is the Reagan tax reform. During this time, Reagan did give tax cuts to big businesses but he also closed a lot of loopholes thus they ended up paying a larger portion of the tax pie. 1981 was the only year where the GDP was below three percent as it was a recession, every year after this it was well above three

Flat taxes in developing and developed nations

2077 words - 9 pages . Understanding Tax Evasion Dynamics. Cambridge, Massachusetts: NBER. Frey, B. S., 2011. Happiness: A Revolution in Economics. Economica, 78(310), pp. 397-399. Fuest, C., Peichl, A. & Schaefer, T., 2005. Dokumentation FiFoSiM: Integriertes Steuer-Transfer-Mikrosimulations- und CGE-Modell. FiFo Discussion Papers - Finanzwissenschaftliche Diskussionsbeiträge. Fuest, C., Peichl, A. & Schaefer, T., 2008. Is a flat tax reform feasible in a grown-up democracy of

Similar Essays

Tax Reform Essay

1640 words - 7 pages defenseless to foreign acquisition from the international opponents (Camp). Corporations and United States citizens have been fighting for a tax reform, which would hopefully help the American economy; either by lowering the corporate tax, or by raising the tax. The United States corporate tax rate is one of the highest tax rates in the world, at around 35 percent. Only Japan has an elevated corporate tax rate than The United States, which has

German Tax Reform 2004 Essay

1700 words - 7 pages IntroductionThe planned tax reform which should be brought forward from 2005 to 2004 was supposed to put around 26.0 billion (amounting to 1.2% of GDP) back into German people's pockets. But after the compromise between CDU and SPD the mixed tax reform for 2004 saves only 22 billion for the people. This amount is not available for the most households because other limitations and regulations like the abolition of "Eigenheimzulage" reduce the

U.S. And Swedish Trends In Tax Reform

1027 words - 4 pages Tax reform has become a major governmental policy issue in the United States as well as in the rest of the world. Countries are attempting to balance both economic efficiency and provide equity in taxation. Governments are looking to rewrite tax codes to minimize their impact on economic growth. Specifically, governments throughout the world are attempting to preserve incentives built into taxation to maximize economic efficiency. At the same

Tax Reform: Two Sides Of The Same Coin

993 words - 4 pages Tax Reform: Two Sides of the Same Coin Tax season is upon us and many Americans are scrambling around trying to get theirs finished by the end of the dead line. This time of year is not a joyous occasion, everyone on edge most of them pondering how much they will have to pay. While others are wondering if they will get as much as they thought they will, or are they going to be one of the unlucky few to be audited? I am one of those people