Tax Reform In The United States Economics Essay

Tax Reform In The United States Economics Essay This research paper discusses the theme of tax reform in the United states. Nowadays this issue is an actual one. Many Americans are interested greatly in this issue and even express their personal opinions on this topic. The research paper discusses different problems with the current tax system and represents some ideas concerning some changes in the US tax reform. Key words: tax, tax system, tax reform. 1. Introduction It is impossible to carry out new transformations for the purpose of steady development of the economy without formation an effective tax system. Tax reform is a process which changes tax policies of the government. It is known that there are different goals of this process such as reduction of the tax level of all the people, changing tax system for more progressive effect, simplification of tax system. A good tax reform can improve the life of many people. 1.1. Significance of the study This research paper discusses one of the most important issues in the development of the economical system tax reform. This issue is an actual one not only for the United States but for any country of the world because financial sector plays a key role in the present day development of the economy. Tax reform is a main tool of the governmental control. In the context of tightening business competition there is a necessity to take appropriate measures in getting over the consequences of the financial and economic crises 2008-2009. So, tax reforms have such functions which will help to stimulate economical growth and innovative activity, and to increase social protection. 1.2. Definition of terms In order to conduct a good research on tax reforms it is necessary to represent some economical terms which will be used in the process of research. They are the following ones: Taxes are payments which are made by the natural and legal persons (enterprises, organizations and citizens) for the government revenues in mandatory manner. It is a duty of everybody to pay taxes. Taxes are necessary because by means of taxes the government has an opportunity to control some economical processes in the country. They help to develop and reduce some kinds of business, to guide the development of these or those brunches of industry, to influence the economic activity of some enterprises and organizations, to balance consumers supply and demand, to regulate the amount of money in circulation. Tax system is the total of taxes, fees and other obligatory payments which are taken according to the legislative acts. The main characteristic features of any tax system include the following ones: the total of taxes fixed by the government; the complex of principles, forms and methods of their putting into operation; the system of tax authorities, forms and methods of tax control; rights and duties of the participants of tax relations; order and conditions of the tax process. (Roach, 2006) 2. Discussion themes This research paper touches upon the themes which are closely connected with the topic of the paper. It discusses issues and problems with current system in the United States. Moreover it gives some new ideas for tax reform. 2.1.Some Facts from the history of Tax Reforms in the USA According to the historical data, there were a lot of various movements in the USA which had the main goal to reform the collection and the management of taxes in the country. Thus, the Whiskey Rebellion which took place in 1799, is considered to be the first effort to carry out tax reform in the USA. From the historical sources we learn that George Washington who was the US President at that time sent about 13000 troops to the western part of the state Pennsylvania in order to put down the rebellions. Another significant movement against tax reforms took place at the end of the 19th century. Henry George, who was an outstanding American economist of that time, was at the head of that movement. The main goal of that movement was to abolish all forms of taxation other than the Single tax on land values. He offered this single tax in his book Progress and Poverty in 1879. This plan was not put into practice although it got support. This movement on tax policy was spread not only in the United States but also on Australia and New Zealand. However, the organization which is called The Henry George Foundation of America continue to promote this form of taxation reform. (Barker, 1985) It is known that several organizations in the United states are engaged in tax reform in the country among which are Americans for Tax Reform, Americans for Fair Taxation, Americans for Responsible Taxes. These and other organizations have already promoted some ideas concerning tax simplification in the United States which include Flat tax plans, Fair tax and bipartisan tax reform proposals. (Tuerck et al., 2007) 2.2 The Structure of Taxation in the United States and its meaning It is known that the system of taxation in the United states is a progressive one. It means that the percentage of income which is paid by the household will increase with the increasing income. In other words those people who earn more will pay a higher rate of taxes. Here is an example: A person earns $100,000 a year, he will pay 25% of it $25,000. A person earns $30,000 a year, he will pay only 10%tax rate $3,000. However, there may be also regressive and proportional tax systems. Some Reasons for using the Progressive tax system in the USA: Progressive tax system stands for the concept that those people who earn more should pay more tax rate because they have more opportunities to pay and they will not forego the most necessary things such as health care or education. Reduction of inequalities in the society. (Roach, 2006) 2.3. Different types of taxes in the USA There are several different types of taxes in the United States. All these taxes are collected by the Internal Revenue services. They are the following ones: Income taxes; Corporate taxes. These taxes are based on the companys income per a financial year. Investment taxes. These taxes are usually paid when a person receives some dividends and capital gains. (Smith, 2010) There are also some other types of taxes which are paid by the individuals: income tax, sales tax, property tax, social security tax, medicare tax and others. (McIntosh 2010) Taxes on business include federal which include four groups: income, self employment, payroll and excise, state which include common state business taxes (sales tax, employment tax and business income tax) and local which are collected by cities and counties in order to supplement services for this or that area. (La Rose, 2010) 2.4. Problems with the Current Tax System in the United States The US Tax System is considered to be a complex one. It has its peculiarities which differ it from the tax systems of other countries of the world. However, the US Tax system has both advantages and disadvantages. The last ones require certain changes. Here is the list of problems with the current Tax System in the United States: A fabulously complex tax system with numerous layers of taxation on the same money: taxes on income and salaries, ans savings. According to the statistical data, four of five middle-class Americans pay more in payroll taxes than in income taxes. (Walby, 2008) High rate of unemployment (about 10,3 million persons). Little of the mortgage interest deduction refer to those people who are at low and middle level of income.(Walby, 2008) About 18% of taxpayers have got out of the system. The income taxes fail to take the cash payments and other unjustified transactions concerning illegal immigrants. The income taxes assist imports over the US production by excluding imports from Us tax and it penalizes the US exports giving an opportunity to some foreign countries to impose taxes when our goods are delivered to their shops. This fact damages the US exports and even costs the Americans their jobs. (17% price advantage over the US goods.)(Tuerck et al., 2007) The income tax system puts the highest corporate tax rate enforcing companies to be located in other countries. Great problems with education, many students do not know about the financial aid which can be given to them. College education became too expensive. College graduates have debts of more than $19.000 when they leave college. A great deal of manufacturing jobs were lost due to breaking out the US manufacturing trade deficit. (Arduin, LafferMoore Econometrics, 2006) 2.5. Interview Interviewer: Hello! What is your attitude to the present day tax system? Are you satisfied with it? Mr. Brown, an engineer/49 years old: Good day! I think I pay too much in taxes. Mr. Wilson, a doctor/29: The Tax Code is too confusing! Ms. Whinthrop, a manager/41: I pay through the nose on income and payroll taxes and they say we still dont have balanced budgets! Ms. Hartcoph, a student/20: I think rich people do not pay their fair share. Mr. Carack, a worker/27: Oh, little guys like me cannot take advantage of the tax code like those people who earn much and corporations do. Ms. Curts, a pensioner/71: You know, fifteen percent of Americans do not pay any income tax any more! Mr. Bronks, a builder/38: Our current tax system taxes the poor but not the rich. The programs are all for the benefit of the rich and on the backs of the poor. Analyzing the above mentioned interview, we can say that many people are not satisfied with the current tax system. They consider it should be changed. Most Americans choose fair Tax plan. (Kotlikoff, et al., 2006) Some words about the main idea of this plan. The Fair Tax is a proposal to replace the following taxes as the federal corporate income tax, the federal payroll tax, the federal estate tax, the federal gift tax, the federal generation-skipping tax with a federal retail sales tax, assessed at a single rate. The Fair Tax guarantees a rebate to each household which will be based on its demographic composition. The main idea is that the rebate ensures that households who live at or below the poverty line in the United States will pay no taxes on net income. (Kotlikoff et al., 2006) 2.6. Some New Ideas for Tax Reform in the United States Of course, it is very difficult to judge but I think that there should be some changes in the tax system of the Unites States. Here are some ideas for tax reform: Those countries which supply the United States with their products (for example, China) should pay more for import of their products. It is necessary to replace the existing federal Tax Code of the United States into a more simplified version. It will be good to impose no taxes on export and corporate profit in order to save jobs and to make the US companies more competitive. There should be no taxes on education tuition fees. Non-filers should pay taxes when they buy goods or use services. Those who get low incomes should not pay any taxes. 3. Conclusion In conclusion, it is necessary to say that taxes play an important role both in the economy of the country and in the life of citizens. Tax money is used by the government to run the most significant activities. This money may also be invested in some projects which will be beneficial for all the citizens of the country. It is very important to have such a tax system in the country which will be appropriate for citizens of all the levels of income and will allow all of them to live a full life. That is why we need tax reforms.

Ethical Analysis

The Consequential Theory contends that the moral rightness of an action can be determined by looking at it consequences. If the consequences are good, the act is right. If the consequences are bad, the act is wrong. In the case of Kent, he believes that the nudity in the Lucky video game is a bad idea. He feels that some people will be really upset about it. However, the Lucky project can also bring in a great deal of revenue for Broadway, and jobs are at stake. In this case, the consequences of putting the Lucky video games on the market would result In higher revenue or net happiness.On the other hand, the fact that they Lucky video game has full nudity as well as graphic violence will upset a lot of people and they might not support the died game. Brad feels that the games are not ready for the U. S. Market; therefore, he has contacted an Internet provider who will take their game and put it on the Net as an adult product. He has also checked out foreign markets and found that the y can sell the machines to the Mexican market if they tone down the violence.The Taiwanese has agreed to the version the Broadway now has and wants them to develop something more graphic in both areas. By reaching out to the foreign market, this act will also produce net happiness on the other hand it can lead teenagers to violence and internet pornography. In my opinion the fact that Kent realized that producing the Lucky video game with full nudity and graphic violence will upset some people and that they should not go through with the product demonstrates ethical behavior on the part of Broadway Corporation.However, the Joint venture with the Taiwanese group, selling of the machines to the Mexican market and using the Internet is unethical behavior on the part of Broadway Corporation. The Deontological Theory claims that actions can be judged ethically good or bad on the basis of absolute moral principles arrived by human reason regardless of the uniqueness of an action, that is, regardless of whether there is net happiness. Brad is willing to selling the video game to the foreign market as well as a Joint venture with the Taiwanese group.Kent feels that the Lucky video game is a bad idea and feels they should not go with the nudity idea. In my opinion, Brad Is willing to market the Lucky video games to the foreign markets and on the Internet with the nudity and graphic violence is unethical on the part of the Broadway Corporation. By doing this, It may contribute to teenage violence and prone. Kent Is thinking of the people that the Lucky video game might set which is ethical on the part of Broadway Corporation.I nee Dental AT ten Lucky peeve Is ten pronto Tanat Broadway corporation will make. The test market results suggested that the nudity and graphic violence increased profitability dramatically. The cost of the Lucky video game will be the video design, development, implementation, and operation. Other costs include site and facility and the shipping of the video games globally. Under the Consequential Theory, the benefit is increased profitability which is net happiness; therefore, the Lucky project is good because of the profitability.Under the Deontological Theory, by selling to the foreign markets and internet, Broadway Corporation saying that it is okay for the foreign markets to sell video games with graphic violence and nudity to the U. S. Markets. The Broadway Corporation should consider taking out the nudity and graphic violence in the Lucky video game. After all their target market is children aged 5 to 12 and teenagers between the ages of 13 to 19 and of this market 75% are male. The Broadway Corporation can end up Jeopardizing their stance in the video market by producing and selling the Lucky video game.

Israel Is A Small Democracy At The Eastern End Of The...

Israel is a small democracy at the eastern end of the Mediterranean Sea, with a 2016 population of 8.17 million, of which, 74.8 percent is Jewish; most of the rest of Israel s population is Arab. The term Arab denotes persons descended from tribes inhabiting the Arabian Peninsula or persons speaking the Arabic language. By this definition, there are about 250 million Arabs worldwide, most found in the group of countries occupying North Africa and the western part of the Middle East. Most Arabs are Muslims, but a significant minority (about 10 percent) in the Arab Middle East are Christians, and some are secular (profess no religion). Most Israelis and many non-Israeli Jews, as well as other supporters of Israel worldwide, see Israel as†¦show more content†¦Israel then declared its independence on 14 May 1948; it was quickly recognized by the United States, the Soviet Union, and many other countries. The new nation of Israel was also immediately attacked by neighboring Arab states. Israel prevailed in the conflict and, in the process, secured more territory for itself than had been stipulated under the UN partition plan. More than seven hundred thousand Palestinians remained displaced after the war, and were considered refugees. They settled in camps in nearby Arab nations. Central to the ongoing Arab-Israeli conflict is the question of Palestinian statehood. Palestinians refer to their departure from Israel as the nakba or â€Å"disaster.† The refugees and their descendants, the Palestinians, today reside in the coastal Gaza Strip to Israel s south and along the west bank of the Jordan River, to Israel s east. In 1949, the UN arranged a ceasefire in Israel, setting a boundary around it known as the Green Line. In 1967, during the Six-Day War fought between Israel and the combined forces of Egypt, Jordan, and Syria, Israel s victory enabled it to extend its borders beyond the Green Line, into the Gaza Strip and the West Bank, and begin building settlements there. 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Essay on Sixty-Nine Cents, by Gary Shteyngart - 866 Words

The author Gary Shteyngart of â€Å"Sixty-Nine Cent† describes himself in a tug of war between the Russian culture of his parents and the American culture in which he wants to be a part of. At the age of seven, Gary Shteyngart and his family immigrated to the United States from Russia. When he was fourteen, his family and other Russian immigrant made a trip to Florida to see Disneyland. He describes â€Å"the ride over the MacArthur Causeway to Miami Beach was my real naturalization ceremony†( Shteyngart 103). At that age, he wanted to be like every American born boy, He wanted to eat at McDonald’s, walk the beaches, and speak to the girls, and to enjoy what every boy his age takes for granted. One of his desires was to eat a McDonald’s†¦show more content†¦One such tradition is not socializing with neighbors but only talking to her sisters or other family members. Both of my great-grandparents came from a large family and so the Sunday was always considered family day. It was nothing to see a yard off of kids playing or see the men playing a game of horseshoes as the women would set out the dinner. However, it was the winter time that holds the most memories for my mother. It was then that the families would all gather at the family pond and go ice skating and the men would build a big fire and everyone would stand around and drink hot chocolate. One such tradition in the winter time was right after the first snow fall of the season. We would take a big mixing bowl and go out and fill that bowl as full as we could. Then she would go in and make a big bowl of snow ice cream (Food in Every County). One bright sunny day, our family was going to Lake Pomme De Terre for a family picnic. Like Shteyngart, I was all set for some grilled hamburgers or hot dogs or even some fried chicken. However, that was not meant to be. Like Shteyngart, is aw food being set out that was I saw food that was familiar to my great-gran dmother’s culture. Instead of grilling hamburgers, she set out chicken and noodles, mashed potatoes, green beans and for dessert a shoofly pie, sugar cookies, and schnitz pie, which is made with dried apples (Food in Every County). My mother laughed when she saw my face because later my