Contact Us
Sign In / Sign Up for FREE
Go to advanced search...

Macroeconomics and Microeconomics - Fair Taxes - Essay Example

Comments (0) Cite this document
FairTax Instructor Name December 3, 2011 Abstract FairTax is a kind of sales tax presented by some US house members & supported by some of the Americans. It says that a 23% sales tax should be implemented on all items cutting off all other federal taxes…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER97.5% of users find it useful
Macroeconomics and Microeconomics - Fair Taxes
Read TextPreview

Extract of sample "Macroeconomics and Microeconomics - Fair Taxes"

Download file to see previous pages The people of US are fully aware of the deductions made in the name of federal government taxes; they are now facing a new & unique kind of tax, which is being sponsored by 21 members from the house. This unique & novel specie of tax was proposed in the house of Republic of Georgia by John Linder & Rob Woodall by the name of FairTax Act of 2003, which states that the Americans are gifted with a single “national retail sales tax” in place of all other federal government taxes which include income taxes, capital gains taxes, death taxes, payroll taxes like social security & Medicare taxes etc. This sales tax comes with an amount of 23% of the original cost on all products in their final sale. Thus every American has to pay a 23% more of the original cost of any product in which way they simply get rid of every other sort of tax (FairTax official website 2011). Every American has his/her own reservations & concerns against this bill. None of them is very sure that this act is actually going to change their lives in terms of betterment or not. They are under the concept of a single but huge kind of tax which is going to cover the rest of all other taxes. On the other hand, Rep. John Linder named it FairTax as according to him, other federally administered taxes were not fairly distributed among the high earners & low earners, while FairTax emphasizes that the more one spends, the more he/she pay the tax (the more one spends the more he/she has to pay in terms of taxation). Hence he made his point clear that high earners will surely spend more as compared to low earners, so the imposed tax will become “Fair” corresponding to everyone. According to a survey in the year 2009, 43% Americans are in favor of this bill, while 38% of them wanted to settle for the ongoing taxes. Hence overall less than a half population is in favor of the bill which clearly indicates its low level of appreciation & acceptance among the general public. (Boortz & Linder. 2005). However, for this bill to become a permanent act in US constitution, it has to go a long way. It must be passed by the U.S. House Committee on Ways and Means, both the House and the Senate and then finally signed by the President. In the year 2005, an advisor committee made by President George W. Bush indicated severe concerns regarding this bill. The most important issue was that the federally administered funds like retirement funds or gratuities etc have to be paid from the revenue gained by FairTax, which is very difficult to administer. Many critics also say that this bill would have harmful effects on the economy of the country as the revenue collected by it would be very less than currently enforced taxes, thus the government will either have to reduce its own expenses or else would face a great deficit in budget. Since the investments like exports, business transactions, savings or education tuition expenses would not be taxed as they are not considered to be a final consumption; there will be a huge setback for the economy. Hence many economists & advisory & advocacy groups strongly disagree with the idea of implementing FairTax bill as a revenue-neutral act for the government. (Hoagland. 2010). On the other hand, there are economists who are in a great support of this bill as according to them; it will boost US economy in the coming years. By doing some calculations with the rate of FairTax, The Beacon Hill Institute estimated that ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
(“Macroeconomics and Microeconomics - Fair Taxes Essay”, n.d.)
Retrieved from
(Macroeconomics and Microeconomics - Fair Taxes Essay)
“Macroeconomics and Microeconomics - Fair Taxes Essay”, n.d.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF Macroeconomics and Microeconomics - Fair Taxes

Is It Fair To Characterize the Nationalization Programme as a Failed Experiment

Nationalization of key industries and sectors like Health, insurance were thought to be the easiest way for the all round development of the nation. The National Insurance and National Health Services (NHS) in Britain are a direct consequence of the consensus between Labour Party and the Conservative Party in the domestic politics during 1945-1970s. Britain came to be known as a welfare state, as it also established the state provision of social security benefits and pensions. Subsequently the Labour government also facilitated a policy which allowed the government to intervene directly in the economy by way of nationalisation of key industries, like coal, power and steel, and the transport sector (EIU, 2006). Management of war ec...
6 Pages(1500 words)Report

A Discussion on Fair Value Measurement

...As a result of the current financial crisis, will the IASB totally or partially remove fair value measurement options or requirements from accountingstandards? Introduction Among the accounting standards issued (and will be issued) by the Financial Accounting Standards Board (FASB) for the United States generally accepted accounting principles (US GAAP) and the International Accounting Standards Board (IASB) for the International Financial Reporting Standards (IFRS), nothing has been more scrutinised and criticised than fair value measurement. In fact, the focus on this measurement has been increasing for the past years or so. The IASB, itself, has been working double-time to improve the fair value measurement standards. In 2006...
8 Pages(2000 words)Term Paper

Macroeconomics and Trade Policys

Keynes argued that prices and wages do not determine the level of employment, as many classical economists suggested, but instead the level of aggregate demand for goods and services (Case & Fair 683). Keynes realized as well during the Great Depression that the government could intervene in the economy to attain specific employment and output goals by either increasing or decreasing taxes and government spending.

For example, raising taxes will decrease the disposable income of households and thus effectively decreasing consumption. When the government decreases consumption, the household demand for goods and services decreases thus it would only seem reasonable that the amount of output that the economy would also...
7 Pages(1750 words)Article

What Is Macroeconomics

While microeconomics is concerned with the factors underpinning the economic life of individual entities like families and small businesses, macroeconomics looks into the various elements that move or determine the economy in its entirety or what some call an aggregate economy. Macroeconomics is useful because it allows a predictive view of how market forces affect the economy and advises governments appropriate economic policies and gives private individuals and business entities a glimpse of what the future holds economically.
The term macroeconomics did not exist prior to the Great Depression but there was a collective set of theories that were used to study the various workings that influenced the aggregate economy. Econo...
8 Pages(2000 words)Assignment

Intermediate Macroeconomics and Macroeconomic Coordination

...CHAPTER 04 (MACROECONOMIC COORDINATION) We know that when GDP, APE & ASF are unequal, than an interplay occurs (Macroeconomic coordination process) which bridges the gap between these variables. If there is a disparity between ADF & ASF, there will be an automatic reaction among money users & suppliers which restores the magnitude of these variables to equality generally known as funding adjustment. Similarly, if there is a difference in the values of GDP & APE, it will trigger the suppliers of goods & services to act together and bring the figure close to equality. This process is called output-price adjustment. The purchasers of the domestic output can be classified into three groups. Group 1 involves individuals having sufficient money...
6 Pages(1500 words)Assignment

How the Staley Workers Can Win a Fair Contract

...Introduction The socio-political paradigms and the federal legislation with regard to employment and employees’ rights are extremely important issues. Workforce is the backbone of an organization. As such, employees become very important part of organizational culture and their welfare is an intrinsic part of corporate responsibility. But often the corporate greed overpowers the good intentions of the employers and workers just become a means to a cause – a tool to exploit for their own vested interests. Case of A. E. Staley Manufacturing Company, which was taken over by Tate and Lyle, is a prime example of corporate greed where the ‘union’ must become the major facilitating factor for workers’ justified demands and ensure fair contract...
8 Pages(2000 words)Case Study

Fremantle as a Historical Tourist Destination Offering a Fair Blend of Modern and Old Culture

... and succeeding in retaining its historical grandeur. Conclusion and recommendations: Fremantle has maintained its place as a historical tourist destination offering a fair blend of modern and old culture both at the same time. The place is largely benefited from the location of the capital city of Perth just miles away from it, so that it affords them the option to not entirely commercialize the destination, and yet attract fair number of tourists each year. The local authorities have taken a keen interest in the development and maintenance of the city and promote its historic and cultural appeal to the international as well as local tourists. Unlike various other popular tourist destinations, the city of Fremantle has not yet...
8 Pages(2000 words)Case Study

Macro and Microeconomics Factors in the UK Housing Market

The housing industry is divided into residential, commercial and industrial segments. Economists define supply in terms of service units, that is, a physical unit can be deconstructed into the services that it helps provide. These housing unit services are considered as an unobservable theoretical construct. Housing stock depreciates making it qualitatively different from a brand new constructed building.
The owner, user/owner and renter comprise the demand side of the housing market while the renovators and developers comprise the supply side of the market. In order to implement the simple demand and supply analysis to the housing markets, several modifications have to be made to the standard microeconomic procedures and ass...
8 Pages(2000 words)Research Paper

Solution and Advantages of the Fair Labor Law

The federal government has introduced some special programs for the multinational organizations that would help them to rear employees in the abroad countries in an ethical manner. The implementations of new policies restrict multinational corporations from continuing practices in a foreign land without labour laws and without the employees having labour unions, who would advocate for their rights. The US government’s prohibition against unfair labour laws while outsourcing business in foreign companies would help to set a precedent of the importance of labour equity and fairness locally and abroad.

With the expansion of western-based multinational corporations in the world, there has been a rise in competition a...
6 Pages(1500 words)Assignment

Coca-Cola Company Practical Problems of Applying Fair Value Measurement

...Finance and Accounting Affiliation: Lecturer: Coca-Cola Company Practical Problems of Applying Fair Value Measurement 1. Introduction Recent considerations by the IFRS have aimed at the measurement of liabilities and assets. However, the question on the problem of when instead of where the measurement of value needs to be applied is still unanswered (Nissim 2010). The practical application problems have become dominant in a lot of companies; Coca-Cola included. According to the IASB standards and guidelines, fair values have been authorised for use, in particular, liabilities and assets, for instance, the fixed assets (FASB 2009). However, the principles that are intended to govern the measurement of fair value application...
9 Pages(2250 words)Coursework
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Essay on topic Macroeconomics and Microeconomics - Fair Taxes for FREE!

Contact Us