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Reforming the U.S. tax code to eliminate tax credits - Essay Example

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Name: Institution: Tutor: Course: Date: Reforming the US tax Code to Eliminate Tax Credits Introduction Tax reforms involve the alteration on the manner in which taxes are collected within a country to boost the economy and avoid tax credits. This involves the methods of redefining the tax collection and management of taxes with the motive of meeting the targeted efficiency on tax remuneration within the country…
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Reforming the U.S. tax code to eliminate tax credits
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Download file to see previous pages The goals of the reforms on the taxes is to realize the objectives of the National Commission on Fiscal Responsibility and Reforms, whose major goal is to give the people responsibilities related to the growth of the economy in accordance with the level of affluence (Becerra 45). My Position on Flat Tax Rate Flat tax rates imply that the people pay the same amount of tax regardless of their level of income. When the tax rate is constant, all the taxpayers are to be subjected to the same amount of tax without deductions or exemptions. According to the Americans Bill on the reforms of the tax code, flat tax would broaden the tax base while enforcing that every individual pays the tax without any deductions. The flat tax rate payment would benefit the people in various dynamic ways such as it would spread the burden of paying the tax on every citizen in the country. In essence, the flat tax rate if adopted would increase the burden on the middle class incomers while relieving the richest. As a result of that it would not be considered as a fair way of building the economy as the rich who use most of the economic resources are not taxed according to their level of affluence (Diamond & George 140). ...
One of the advantages for lowering the tax rate is that it increases the revenue to the state: the disposable income of citizens increases thereby presenting more money into the government’s account to be used in enhancing economic growth. The provisions contained in the act of lowering the tax on the low incomers is that, the government posed into a situation where it cannot waste its expenditures as the procedures of the government strictly looked into (Jones, John & Teresa 13). On the other hand, the service delivery to the people may be poor; for example, the prison and other welfare activities in the social systems. The government may fail to offer some of the fundamental services to the people as they may not collect the required minimal revenues that can efficiently meet the social needs of all in the country. As the tax rolls decrease, the ability to accomplish such projects lessens. Consequently, the rich may seek for ways to evade the tax as the state may seem biased towards them. The notion is that, it is only the middle class earners who are the favored in the context of tax collection, and the amount of tax levied upon them. Basically it may seem unfair but, in a rational point of view the rich should pay as much as they consume in the economy (Lymer & Lynne 75). The impacts of lowering tax on the low incomers and increasing the same on the rich Economic development based on the level of affluence of the people should be rationally distributed with regards to the people’s levels of affluence. The rich should heavily pay taxes in that they utilize most of the economic resources while the poor hardly get the platform to do the same. Fairness in the tax distribution and levies in a rational point of view imply that, those who leave a huge economic ...Download file to see next pagesRead More
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