Wagdon Pros And Cons

In conclusion it can be recognized there is flaws and exceptional qualities for both tax cuts and tax increasing policies. With that said we can reasonably assume that republican tax cuts could be beneficial. If the Trump administration decides to impose a large enough tax cut, it is likely that

Under the new president, business owners hope to see a reduction in their tax rate. The administration has proposed a tax cut for small business owners from 39.6 percent down to 15 percent for those in the top tax

This idea of reducing taxes to increase investment within the economy sounds like a good idea but hasn’t lived up to its expectations historically. The idea of supply side economics wasn’t a new idea for the American tax code. During the early 1920s, income tax rates were cut multiple times which averaged to a total of most rates being cut by a little less than half. The Mellon Tax Cuts named after Treasury Secretary Andrew Mellon under Presidents Warren Harding and Calvin Coolidge. He believed that changes in income tax rates causes individuals to change their behavior and practices. As taxes rise, tax payers attempt to reduce taxable income by either working less, retiring earlier, reducing business expansions, restructure companies or spending more money on accountants to find tax loopholes. If executed properly tax cuts can actually benefit economic growth, data from the Internal Revenue Service(IRS) showed that the across-the-board tax cuts in the early 1920s resulted in greater tax payments and larger tax share paid by those in the higher incomes. As the marginal tax rate on the highest income earners were cut from 60 percent or more to just 25 percent, the amount that this tax group payed soared from around 300 million to 700 million per year. (See Figure 2) This sudden massive increase in revenue allowed the U.S. economy to rapidly expand during the mid and late 20s. Between 1920 to 1929, real gross national product grew at an annual average rate of 4.7 percent and

During end of the month of September, President Donald Trump announced his newest tax plan that he wishes to employ in place of the current tax plan millions of American citizens use today. President Trump, and people whom are in his administration, has stated that the sole purpose of this plan is help the economy; lower the ever rising national debt; and give the hardworking, taxpaying citizens of the United States a tax break. As for whether or not this “new and improved” plan will actually help the nation and its occupying people is currently in debate. It has become apparent to me that there is no shortage of people from either side of this newest debate subject. Before my personal opinion on this

However, raising taxes on the rich and corporations is not as helpful to our economy as most people think. Although raising taxes on the top percent of people and companies appears to create more income for the government, the result will make it harder for middle class and lower class citizens to grow. Some argue that by combining several key changes, including the simplification of the tax code to avoid loopholes and the decrease of taxes on the rich and corporations, there will be an improvement in the national economy. Although this may seem a bit counterintuitive, it makes more sense when looked at closely. By lower taxes and remove all loopholes, smaller businesses are given further opportunities to grow instead of facing financial roadblocks and government

Trump’s most recent proposal on tax is to cut taxes and give breaks to small businesses and large corporations. His idea allows businesses not to pay income taxes, but the owners are taxed at individual rates on their profits.

Even though the GOP’s tax plan is theoretically a great plan in attempt to the spur the economy, the risk is very great. The risk is large because when the taxes are cut, this means that the government would be losing an immense amount of money. “The Trump administration made no mention on Wednesday of how it planned to pay for such steep tax cuts, which could cost $2.2 trillion, according to the Committee for Responsible Federal Budget” (Gelles). The amount of money lost is crucial in determining how this plan will fare out because even though many of the businesses will become richer and more prosperous, the government will lose money to spend on things like public works, which help to create jobs and spur the economy. Even though this plan is thought out to allow the economy and businesses to prosper, history has showed that economic growth resulted from tax cuts does not sustain long. This can then lead to smaller businesses getting rich quick and then losing that money later down the line, which would then hurt Amazon because they would too prosper for a while, but then lose that money. The government would

Cutting down individual taxes will generate more employment and will help generate more money, it will create more tax revenue, according to Mike DeBones, from “House Passes 2018 Budget, Taking a Crucial Step toward Tax Overhaul.” He states that “Our budget specifically paves the way for pro-growth tax reform that will reduce taxes for middle-class Americans and free up American businesses to grow and hire,” House Budget Committee Chairman Diane Black (R-Tenn.) said during floor debate Wednesday. I agree if the tax is

So as a result, from this tax plan house hold with income $30,000-$50,000 will save $638 on their income tax, house hold with income $50,000-$75,000 will save $1.035 on their income tax, household with income $75,000-$100,000 will save $1,439 on their income tax, household with income $100,000-$200,000 will save $2,356 on their income tax, household with $200,000-$500,000 will save $5,090 on their income tax and household with more than $500,000 will save $29,901 on their income tax. From these calculation results we can clearly say household with better income sources will get most benefit from this tax plan instead of saving money for low income middle-class families. According to this tax plans, the middle-class families not only getting less tax cuts but also losing government incentives. That’s why Cohen states that many households would pay less in taxes, but some would pay more which including about 13 million middle-class families, according to estimates by

Many citizens of the United States voted for Donald Trump for reasons regarding inequality. During the 2016 Election, Trump planned to cut corporate taxes, “from a top rate of 35 percent to 15 percent; his plans to cut tax rates for the highest earners, from nearly 40 percent now to 33 percent at the top rate; and to reduce regulations on business” (The Washington Post). These were his

It doesn't mean everyone. For example, Trump would raise the lowest tax bracket to 12% from 10%. he would eliminate the head of household status, which today benefits single parents of dependents more than if they just filed as single. And he would repeal personal exemptions, each worth $4,050 per parent and per dependent and Instead, Trump would greatly increase the standard deduction (to $15,000 for singles and $30,000 for married couples) and include a few new tax breaks for child care. He would retain today's child and dependent care tax credit. According to the article Donald Trump has claimed his tax plan will cut taxes for working- and middle-class Americans. Basically all trump wants to do is tax the people who wealthy and make them pay higher

This may sound like a tax plan that will relieve the financial burden on lower-income taxpayers, directly benefiting the poor, but in actuality, cutting taxes for all in a regressive manner gives substantially more money to the wealthiest taxpayers and a very small amount to lower income taxpayers. According to his plan, a typical American family of four will be able to keep at least $1, 600 more of

In theory, cutting taxes helps the economy by putting more money into the pocket of consumers, which they will then spend. For income of individuals and families, Donald Trump is proposing simplified tax brackets with tax cuts across the board. Whereas the current income tax plan has 7 rates, stretching from 10% to 39.6% (more like 43.4%, due to the net investment income surtax), the President-Elect will pursue income tax rates of only 12, 25, and 33% and capital gains tax rates of 0, 15, and 20%. In addition, Trump has proposed eliminating the net investment income surtax and any Obamacare taxes, making 33% and 20% the true maximums for income and capital gains, respectively. Beyond income tax cuts, businesses will see a massive tax cut under Trump’s proposed policy. Corporations currently pay a 35% tax rate; going forward, all businesses (including income earned by an individual from a corporation) will be taxed at 15%, with most business deductions eliminated, in an effort to reduce the debt dependence of

Government tax cuts and taxation on the middle class always seems to be the debate in every election year in the U.S. This debate is always related to the federal deficit and our national debt. The pro side of the argument is that if you cut taxes the revenue generated for the government will fall and it will then expand national debt. But in the counter arguments on cutting taxes can stimulate the economy, leading to an increase in government revenue with the redux in tax rates. According to Forbes article “Do Tax Cuts Increase Government Revenue?” “Using the data from 1913 through the end of 2011, the correlation between the maximum marginal income tax bracket and total Federal receipts is a negative 0.50. In simple terms, when taxes are cut, Federal revenue has a very strong tendency to rise! And when taxes are raised, government revenue has a strong tendency to fall.” ("Forbes Welcome", 2016). I believe the tax cuts proposed to the 95% of the country will have the intended a stimulus effect on economic consumer spending which leads to an increase in government revenues and eventually work its way down to a rise in the real GDP. The tax cut policy should generate revenue and show positive results in Home Depot’s financial gains. I believe the lowering of the tax rates will increase disposable income, and boost consumer spending, directly again home depot and the economic growth and it should succeed in its intended goal of creating a higher standard of living.

This combines the current 33% to 35% Americans who earn between 191,651 dollars to 418,400 dollars. When filing jointly, you would fall in the 35% if you earn between 260,001 dollars to 1,000,000 dollars. Under the current tax brackets, anyone who fell between 233,351 dollars to 470,700 dollars. This tax bracket is interesting because those who earn between 470.700 dollars to 1,000,00 who would usually pay 39.6% only have to pay 35%. The final tax bracket is the 39.6%. If single, you would fall under this bracket if you earned 500,001 or more under the new plan. Before, you would only had to have earned 418,401 dollars or more. If filing jointly, under the new plan those who aren 1,000,001 dollars or more would be taxed at 39.6%. Currently, anyone who made 470,701 dollars or more would be taxed at this rate. As you can see this is beneficial for the higher earning Americans. It puts less people in this high tax bracket. While this is Trump’s plan and has been approved by the House, the Senate issued their own plan. They want to keep the same seven tax brackets, but lower some of the rates. While Trump hopes to have a plan on his desk before Christmas, I believe it will be an uphill battle to get the Senate to agree to only four brackets.