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Journal opining article - Essay Example

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Name Instructor Course Date “Putting Fiscal Policies under the Microscope” In an attempt to assess the fiscal policies Wessel is seemingly on the verge to clearly assess the policies on a broader perspective. For that reason, the article in consideration is one that puts fiscal policies under scrutiny as authored by David Wessel (11)…
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Download file to see previous pages Additionally, spending policies need to be well scrutinized prior to making any economic moves, especially in the present day world. Wessel adds on to indicate that, being able to change the spending policies and the tax policies is essential whilst considering the current economic times and changes in governance (11). Wessel explains that if tax reforms focus on increasing the economic growth rate, then the scorekeepers need to take into account the growth spurt including the extra revenue collected in a specific financial year (12). This aspect, which has a direct implication on the economy, finds support and backup from numerous persons. Wessel is of the opinion that significant legislation in the normal routine gets tweaked such that the tally matches the promises of the proponents not just for bragging rights, but it clears the hurdles in parliament (11). Wessel, in his article, claims that when campaigns culminate and there is legislation of the promises, the joint tax committee and the congressional budget office makes decisions on the various proposals made (12). According to Wessel, so as to stabilize the economy, there is a need to consider basic precepts (11). This is to mean that the economy growth requires clear guidelines and operation mechanisms. Wessel explains that the precepts are that accounting should not interfere with the congress in passing legislation which improves the growth in the economy (11). So as to have quick glimpse of economic growth, accounting should not permit to the pretense of the congress that every cut in tax caters for its expenditure. It is also vital to note that accounting should also not allow the assumption by the congress that there is a cost free spending on education. This spending, according to Wessel, not only increases the productivity of workers, but also has a massive positive impact on the economy (12). Wessel also argues that at some point when there are numerous changes in the tax plan, the various authorities that have the function of implementing the changes, figure out that people and businesses respond in the event that the congress puts in plans and changes (12). Some of the changes in relation to Wessel include cut capital-gains in the tax rates whereby, shareholders sell the profits that they have and consequently lead to a surge in the revenue on a temporary basis (12). Ian endeavor to increase spending and elevate the economy, there is a need to set aside funds to the Medicare providers. In the long run, this will lead to an increase in spending in the economy. Changes in the subsidies for farmers make them dedicate more energy to production, for instance growing more crops leading to more profit, which in turn are dedicated to raising the economy. According to the article by Wessel, official tags on legislation do not consider the results of a bill on the overall economy (11). In the view of Wessel, this can, in simple terms be referred to as dynamic scoring (11). Additionally, whilst analyzing the fiscal policies in an economy, it is vital to note that the bodies that implement the tax rates do not incorporate the macroeconomic effects. Changing the rules made by the congress will therefore become incomplete and consume a lot of time. Changing these rules, in regard to Wessel, also depends on the models of the economy and requires judgment calls (12). The author explains that some of the bills put in place focus on extending income ...Download file to see next pages Read More
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