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

Create a written analysis of a current economic event - Essay Example

Comments (0) Cite this document
Institution Instructor Introduction The Bush-era tax cuts were passed and implemented in the year 2001 and have had a significant impact on the economy of the United States of America. The tax cuts were reinforced by the pension protection act, which was approved in 2006…
Download full paper File format: .doc, available for editing
GRAB THE BEST PAPER95.2% of users find it useful
Create a written analysis of a current economic event
Read Text Preview

Extract of sample "Create a written analysis of a current economic event"

Introduction The Bush-era tax cuts were passed and implemented in the year 2001 and have had a significant impacton the economy of the United States of America. The tax cuts were reinforced by the pension protection act, which was approved in 2006. Despite the tax cut being beneficial to large institutions especially corporations, there has been divided attention between the democrats and the republican on its impact on the American economy. Since the Bush-era tax cuts were expected to be terminated by the year 2010, it was extended alongside other laws on tax by the Obama administration through the passage of the 2010 tax relief act. In line with the economic development of the American economy, the Bush-era tax cuts have had significant impacts on the progress of covering the country’s debts, as well as running the government. This essay seeks to provide a detailed analysis of the effects of eliminating the Bush-era tax cuts, taking into account the middle class. Discussion According to the Congressional Budget Office, the extension of the Bush-era tax cuts would strain the current American economy more than its current state; this has led to the necessity of making major modifications on the tax cuts or getting rid of them, a move that has been widely accepted by a majority of the American population (Foreman and Dewhirst 117). President Obama has proposed to implement modification of the Bush-era tax reforms and make it applicable to the middle class only (Desai 72). The American economy suffers from revenue constraints. In the last couple of decades, the government has been offering a discount on services presented to the citizens, which has led to an increase in the national borrowing. This is clearly observed in the escalating national debts, acquired to cover up for the lost revenue, and is not healthy for the development of the country’s economy. Since the tax cuts reduce the revenue collected by the government, extensive modification or elimination will lead to an increase in government revenue, which will propel the American economy to stability. The wealthiest American pay very little in tax to the government despite owning more than a third of the total private American wealth. This is evident from the large number of corporations and institutions, which pay zero tax or very low tax percentage. Since the government requires revenue to run its activities, the tax burden is shifted to medium and small-scale businesses, as well as individuals. This leads to an economic problem where majority of the funds are available in the hands of few individuals. For sound economic development to be realized, the flow of money and other equity in the economy should be vibrant. At the moment, a significant amount of equity is held in offshore bank accounts, brokerage accounts under the hands of a few wealthy individuals and corporations. Since the money is neither taxed nor available for circulation to the American economy, it places economic constraints to a majority of the population. The abolishment of the Bush-era tax reforms will ensure that a significant percentage of the money is reinvested back to the economy. This will lead to the creation of more job opportunities especially among the middle class and low-income earners. When the number of small and medium sized business is increased, the country’s wealth is distributed fairly to the citizens and their impacts of the economic development are evident. The United States of America government spends large amounts of money on the unemployed and the less privileged in the society in providing for them the basic needs. Therefore, when the middle class and the less privileged have alternative sources of income to support their needs, then the government can use the fund intended to support them to undertake various development projects. On the other hand, revising the Bush-era tax cuts will ensure that the number of American jobs exported abroad decline by a significant percentage; this will be useful in reviving the American economy. The restructuring of the tax laws could also attract foreign investors and thus propel the economy to prosperity. The expiration of the Bush-era tax cuts is expected to have a positive impact on the individual tax rate in the United States of America (Winters 252). This is because it will lead to the sealing of the loopholes causing the loss of individual tax to the government, which accounts for more than half of the total tax loss. Recovery of the lost tax revenue is very good for the entire population since the tax burden is to be distributed fairly to all persons within the republic. Moreover, this would have a positive impact on the majority of United States of America’s businesses, such as partnerships, as according to the laws of forming a partnership business, the income is shared among the members. Conclusion Though the Bush-era tax cut has been operation in America for the last twelve years, it has been attributed to the increase in the national debt and the decline in the rate of creation of American jobs by American companies. Therefore, the amendment and abolishment of the Bush-tax cuts have been welcomed by a majority of the population since it will ensure that the tax burden in distributed fairly. This will ensure economic empowerment of the less privileged and the middle class through improved circulation of money. Works Cited Desai, Padma. From Financial Crisis to Global Recovery. New York: Columbia University Press, 2011. Print. Foreman Sean and Dewhirst Robert. Roads to Congress 2010. Lanham, Maryland: Lexington Books, 2011, Print. Winters Jeffrey. Oligarchy. New York: Cambridge University Press, 2011, Print Read More
Cite this document
  • APA
  • MLA
(“Create a written analysis of a current economic event Essay”, n.d.)
Retrieved from
(Create a Written Analysis of a Current Economic Event Essay)
“Create a Written Analysis of a Current Economic Event Essay”, n.d.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF Create a written analysis of a current economic event

The Economic Impact of the Emergence of China and India

... and materials that are part of Toyota’s operations—the supply side of the automobile industry. The effects of this inflation do not stop in the supply side of the automobile industry which could significantly impact a firm’s cost structure. With the rising fuel prices, demand for automobiles is threatened too, as fuel is a complementary product of automobiles. At least in order to address the threat in the demand, Toyota put on the initiative to create a hybrid car which has saved its operations from this. The other economic impact of the emergence of China and India is its low-cost labor strategy that makes outsourcing to these countries attractive to automobile manufacturers. This can give a company the cost advantage it needs...
10 Pages (2500 words) Assignment

The Necessity of Job Analysis

... Lecturer: presented: Job Design Job design is an arrangement of procedures and organization of work which indicates the techniques and the interactions which are put in place in order to suit the technical and managerial requirements while on the other hand to satisfy the individual needs of the employees. It highlights the occupation structure, the duties of the workers as well as guidelines regarding the information which the worker is supposed to access. The importance of job analysis in human resources is to help the management to ascertain and endorse the usefulness of certain activities which take place in employment such as employment procedures such as training, choice of the appropriate employees, reparation as well...
7 Pages (1750 words) Coursework

Analysis of the Methods of 3 Research Papers about Child Abuse

Research ethics was maintained as the identity of the individuals participating was kept secret. As far as the validity of the study was concerned, the researchers attempted to use content validity in order to get an accurate response. The content validity focused on measuring off the ethnicities and gender percentages within the area and attempting to get a random sample of individuals via the phone. Their approach to random calling allowed for a significant random sample in the study. There were a few issues, however, with this type of approach. Those answering the phone sometimes were not always the desired individual, and not all of the desired people were surveyed. Different replacements did have to be used, and the attempt w...
6 Pages (1500 words) Literature review

Comparative Family Analysis

The second component of this essay will be a comparative analysis with the American family to the Arab family, generally speaking, but also clearly described by Homa Hoodfar, in her book Between Marriage and the Market. This essay will discuss the impact of globalization on different types of families in different societies and cultures. The terms ‘traditional’, ‘modern’ and ‘postmodern’ will be defined, elaborated upon and discussed on a continuum of change. Social change, in the face of globalization, will be discussed in relation to how cultures and families have grown or resisted the forces of globalization. We now turn to an exploration of the types of families in the world and follow...
6 Pages (1500 words) Coursework

Economic Analysis of India

The country’s economy is fast growing with a stable political system that encourages foreign investment although with certain restrictions. The country generally has good energy, transport and communication systems which make the cost of doing business affordably.

The Republic of India found South of Asia is by far the world’s most populous democracy and ranks seventh largest in terms of geographical area (Brown, 1994). India is also the second most highly populated country in the world. The country has a rich culture with four major religions having originally emerged from it; Sikhism, Buddhism, Hinduism, and Jainism. The Indian Republic consists of seven union territories and 28 states and ranks twelfth la...
8 Pages (2000 words) Case Study

Airbus A 380: SWOT and Porters Five Forces Analysis

... flight. This means that there is demand for aircraft that can carry more number of passengers at one go and the A 380 is perfectly poised to take advantage of this. Further, with the economy class passengers becoming conscious of more leg room and wider seats which the A 380 can provide, this is indeed an opportunity for this kind of aircraft. The threats to the industry are from the ongoing economic slowdown that might depress the demand for long distance travel and there has been an impact on the A 380 with some deliveries deferred and others cancelled. PORTER’S FIVE FORCES PESTLE ANALYSIS A Political, Economic, Social and Technological, Legal and Environmental factor analysis yields the facts that the political environment...
6 Pages (1500 words) Case Study

Analysis of Educational Website

Since antiquity, education remained a major component of human societies; however, until a few decades ago, it existed in the society in its traditional and conventional form that involved one-to-one interaction of teachers with their students in classrooms. For a few years, educators and scholars have witnessed rapid advancements in the field of information and technology that have altered almost every sector of society in a rapid manner, and so the education sector as well. In such advancements, the internet has now become one of the most popular platforms for students, teachers, businesspersons, and individuals from every sector to acquire education and information within a few clicks and minutes. In other words, the availabili...
7 Pages (1750 words) Article

International Business: World Economic Forum and Davos 2010

...Introduction Globalization, one of the most hotly debated issues means global capitalism to some while others consider it to be the continuation of modernism with the forces of wealth, progress, democracy and happiness at play (Kellner, 2002). Globalization is considered to be beneficial which promotes economic prosperity, cultural diversity and technological advancement. According to the critical social theory, technology and capital work together to create a new globalized and interconnected world. While each force of globalization is important, technological revolution has impacted the business models, value creation and differentiation (Spelman, 2010). The cloud computing technologies that have made the popular social networking...
7 Pages (1750 words) Coursework

Analysis of Articles about Climate Change

...-220) contradicts the findings of the first IPCC report (Houghton, Jenkins and Ephirams, 1990). It removes the element of predictability from the whole scenario of global climate change. But still, it warns us of a possible climate change as Houghton, Jenkins and Ephirams (1990) did, but for different reasons. A limiting factor of this study is that it overlooks the impact of green house gas emissions artificially created by humans and do not try to see whether there is a link between this and the warming patterns in the present interglacial in which there is a lot of aggressive human intervention. Of course, such an enquiry does not come under the scope of this study but people with vested profit motives could make use of these findings...
6 Pages (1500 words) Literature review

Globalization and World Economic Forum at Davos 2010

The seven forces of globalization are; Markets, Production, Culture, Labor, Technology, Environment, and Liberalization. Of these factors, the globalization of markets has engaged substantial attention of the firms and academia. Some markets are highly globalized, while some are not. The scale of market globalization is determined by the extent of globalization of customers, customer needs, distribution channels and marketing strategies of the players in the industry (Stonehouse et al, 2004).

The phenomenon of globalization of markets has resulted in both advantages and disadvantages. It has resulted in the convergence in the requirement of features in a product and augmentation of the intensity of B2B and B2C communica...
7 Pages (1750 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 Create a written analysis of a current economic event for FREE!

Contact Us