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Date First assignment Number of words: 250 Title: Why payroll tax cuts should be made long term Dear Editor, The tax cuts by the Obama’s administration should be extended. This is because the enacting of the payroll tax cuts during the Obama’s administration for the last two years has provided a lot of relief to the taxpayers strengthening their financial capabilities…
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Download file to see previous pages... It would have been long term as it has lead to an anticipated economic growth with up to 2% within duration of 2 years. Therefore, the government should fast track the adoption of laws to avert the expiration of this tax relief and this time make it even more lasting as the testing face of the laws have proved fruitful. To do this they need the support of the major opposition, the Republicans. This is because for many households’ tax rates under the Obama’s administration has been much lower and affordable as compared to the same in Bush administration. This is despite the fact that they were introduced simply as stimulus laws. The extension of such tax cut measures will ease life for the households and extend support to the ailing economy. Second assignment How to avert tax increases if averting tax cliffs will not work The owing automatic rise in the tax rates of the American households have the impact of negatively affecting the lives of the Americans in terms of their welfare socially, politically and at most economically. The Obama’s administration is majorly left with the option of allowing the payroll tax systems established 2 years ago to elapse in its efforts to solve the fiscal cliff. This is though likely to have a negative impact on the social security funds by the U.S. wage earner by lowering their share in the said funding system by a clear 2 percent increasing the taxation of the household by $ 1,000 a year for earners of $50,000 annually. This act should though be progressive so that the impact on the wage earner is uniformly felt. The more wealthy individuals should be taxed according to their earnings as the less income earners are taxed the other way round. The government through the support of the opposition republicans has to join hands to in their efforts to fuel the government role of protecting their citizens socially by way of creating a habitable social environment largely dependent on the security measures placed. The government must also put aside their political differences in its efforts to provide a secure political climate for the thrive of the economic activities engaged in by the citizens. Despite the lapse of the payroll tax system, the household composed of the tirelessly working Americans can still work to cover the anticipated loss of 2% if the government unites with the opposition to create a favorable economic climate supporting every bit of economic activity that the American engages in. Taxation is a government initiative that can only be regulated through the formulation of the favorable laws and fiscal tools to enable the functioning of the government. The government and the opposition in such times have to come together and formulate laws, which are not exploitative to the citizens. This will involve the government considering an opportunity costs between allowing the tax rate reverting to the original 6.2% from the regulated 4.2%, which would result into a raise of the government revenue by about $125 billion in 2013, and the economic welfare of the wage earners. The economic growth that is likely to result from this is quite negligible of a mere ...Download file to see next pagesRead More
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