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 time, these governments are trying to cope with the growth in social welfare programs throughout the past three decades. In this paper I shall discuss two nations which dramatically overhauled their tax systems, and whether or not their goals with tax reform were achieved.In the article 'The tax reform act of 1986: Did Congress love it orleave it?', Randall Weiss discusses the attitudes about taxes in the United States. He details the events and attitudes leading to the Tax Reform Act of 1986, and shows how public perception about taxes has changed since then. He also discusses some of the tax reform proposals that are now currently being thought about in Congress.In 1986 the United States Congress enacted the Tax Reform Act (TRA-86). The act passed with a great deal of bipartisan support. This support was made possible by two features of the act. The first was that federal income tax rates were to be cut dramatically. While this would lead one to believe that federal government receipts were cut substantially as well, it was the second important feature of the bill that allowed it to be revenue neutral. This feature was that the bill was to improve horizontal equity in the tax system. This would be accomplished by eliminating many of the deductions that many individuals, particularly the well to do, were allowed to make.Many of the complains about the tax system in the United States that preceded the Tax Reform Act were about the gross horizontal inequities that it allowed. A great deal of press preceding TRA-86 showed the public how many of the country's wealthiest individuals were able to get away with paying little or no federal income tax. Eliminating many of these tax deductions and loopholes had been the goal of several liberal Democrats for some time. In addition, conservatives in Congress wanted to reduce the escalating federal budget deficit at the time. Also, a prevailing attitude of the time was that reducing marginal tax rates would benefit the economy. It was believed that specific tax breaks and deductions to support economic growth would not be needed with the greatly reduced tax rates. The combination of Democrats wanting more vertical tax equity and Republicans wanting lower marginal rates allowed the Tax Reform Act to gain widespread support in Congress.Since TRA-86, tax policy in the United States has shifted away from base broadening and lower marginal rates toward more progressive taxation and targeted tax reductions. In 1990, and again in 1993, marginal tax rates were raised on wealthy...

Find Another Essay On U.S. and Swedish Trends in Tax Reform

Consumption, Saving and Investment trends in Bangladesh

3219 words - 13 pages INTRODUCTION TO THE REPORTORIGIN OF THE REPORTThe report's study is concentrated on the trends of investment, consumption and savings in Bangladesh and their overall effect on the business cycle of the economy.OBJECTIVESThe broad objective of this report is to analyze in consumption, savings and investment in Bangladesh. The reports objectives can be divided into the following:To give an overall study of consumption, savings and investmentTo

Trends and Challenges in Human Resource Management

2915 words - 12 pages Trends & Challenges in Human Resource PAGE 1 Human resources have been a beneficial aspect to several organizations globally and recently, has been considered one of the most important job functions for many successful corporations. Hiring and retaining qualified employees have previously been a challenging task and with the help of human resource professionals, seeking and maintaining conceptual employees has now become a priority for top

The main differences between Tax Audit and Tax Investigation in Malaysia

1152 words - 5 pages Tax Investigation must be clearly separate from Tax Audit. Tax Investigation is an inspection of the tax payer’s business or individual books, records or document in order to ensure the tax payer had reported the correct amount of income and tax that need to pay in accordance with tax laws and provisions. Tax investigation will be carried on by surprise which also known as back duty case. It was conducted on behalf of owner and outsiders

Sikh struggles in India and U.S

1582 words - 6 pages Sikh struggles in India and U.S. John from the Sikh religion kills Peter, a government official. David, another government official, kills Paul for being a Sikh. John is convicted but David is not. What about when an Indian comes to the U.S.? Indians have changed their cultural traditions so that their family can be accepted and their kids are not made fun of for being "different." These fictional names and situation has occurred to the

Sex Education in the U.S. and Japan

1464 words - 6 pages How much sexual knowledge adults should give to adolescents has been discussed for decades to decrease teenage pregnancy and sex related diseases. According to The National Campaign to prevent Teen and Unplanned Pregnancy (2013), the U.S. has the highest rate of teenage pregnancy among developed countries, and about sixty eight girls per thousand became pregnant in 2008. To change this situation, the U.S. provides two kinds of sex education

Themes in U.S and World History

1448 words - 6 pages Themes in U.S and World History The purpose for which government has been instituted, according to Founding Father Alexander Hamilton, is “because the passions of men will not conform to the dictates of reason and justice, without constraint.” In an effort to constrain men’s passions, nations and revolutionary groups have tried many forms of government. But the institution of a new government necessitates some form of revolution, either

Crime and Punishment in the U.S

1070 words - 4 pages advantage of the shame factor as most punishment was meted out in public. Offenders on public displays at the whipping post, pillory, stocks, and public hangings, not to mention the brandings, probably served their purpose but today would be considered cruel and inhumane. In 1791, the Eighth Amendment to the Constitution was ratified which, among other things, prohibited cruel and unusual punishment (U.S. Constitution). In the United States

Businesses and Tax Breaks in a Digital Economy

1382 words - 6 pages recovery. Not enough with the banks, the governments of major economies led by G-20, are now trying to go after taxes of multinational companies, which they alleged using tax planning schemes to avoid paying their “fair share” of taxes that can be used to finance economic development for the public, which facing deep spending cuts especially in many major economies such as United Kingdom (UK) and United States of America (US). In the era of digital

Goods and Services Tax Imposed on Sales in Singapore

877 words - 4 pages • Supplier shipping products to a foreign address • Services categorized under International Services • Airplane tickets • And local estate agent(s) selling house(s) in Australia How do GST works? GST is a tax that the end-consumer of a product/service meets and does not add on to the cost(s) of the company. In this case, the company in question just acts as an intermediary between the government and the consumer and its duty is to collect the

This essay is about china and economic reform in china

1075 words - 4 pages aspect of Chinese economic reform was the decision of China to join the world economy. Deng Xiaoping and his allies hoped to effect this 1979 resolution in two ways: by expanding foreign trade, and by encouraging foreign companies to invest in Chinese enterprises. This policy--denoted the "Open Policy" (Shirk 47)--was a drastic removal from the policies of Mao Zedong and, in fact, from centuries of Chinese political culture. The Open Policy, which

Parliamentary Reform between 1830 and 1832 in Great Britain

771 words - 3 pages There were many reasons why between 1830 and 1832 parliamentary reform became a big and unyielding issue on the political landscape. The industrial revolution was in full swing, discontent was rife and consequently revolutionary ideas were materialising. But how did the parliamentary reform gain momentum and become such a significant matter among so many other pressing conflicts and issues? The Tory party were in office prior to parliamentary

Similar Essays

Trends In U.S. Funeral Services And The Effects On Grieving

2557 words - 11 pages should it be brought up, even though death is an inevitable part of life’s cycle. Funeral trends, the grieving process, and even the concept of death in media signal shifts in how the U.S. culture views and copes with death. With this in mind, the following paragraphs will address these four questions: 1. What is an overview of U.S. culture in relation to death and grieving? 2. What beliefs about death has the culture traditionally held? 3. What

Auditing Reform And Development In Corporation Practise

1396 words - 6 pages available whether the actions were in contract or in tort. According to The Law Reform (Miscellaneous Provisions) Act 1956, Section 9 of the definition that indicated that the AWA should be guilty of contributory negligence at numbers of level. The chairman, Hooks should be responsible to a greater extent than any other directors for the performance of the board as a whole and each member of it (Lawbook.co). Meanwhile, the action was brought by

Christianity, Reform And Freedom In Method

2447 words - 10 pages characteristic of the early Protestant Reformers. Voluntary discipline represented Protestantism's alternative to the authoritarianism of traditional society (1218). For Prince, the urge to reform had an immediate impact on her life as one of the 6500 free, black residents of Massachusetts. Everywhere she looked in her community, people like her faced oppression, suffering, and a lack of freedom -- freedom to do for themselves. As Prince tells it, her

Trends In Media And Body Dissatisfaction

980 words - 4 pages A growing body of research suggests that media portrayal of the thin-ideal has negative effects on body satisfaction, but has this knowledge translated into practical solutions? First, this analysis will review literature describing the correlation between the media’s portrayal of thin-ideal and body dissatisfaction. Subsequently, a review of recent empirical studies about trends in media and body dissatisfaction will be presented. Finally