Preview

Effects on Raising Taxes on Corporations

Good Essays
Open Document
Open Document
878 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Effects on Raising Taxes on Corporations
Effects of Raising Corporate Tax Rates

Effects of Raising Corporate Tax Rate
Michael Richardson
October 20, 2011

Currently Congress is debating on raising tax rates. There is a couple different views on how this will affect the economy and income from taxes. I will present both arguments to you for you to decide on which way you may lean, although my mind is already made up on the matter.

First off, as I have seen the two viewpoints are a liberal and a conservative viewpoint. First I will present the liberal viewpoint. As some of the liberal members of congress and the media see it, raising taxes will increase the amount of money that they will receive from so called wealthy Americans, which to a extent makes sense. If I charge you five dollars and then increase the cost to six, then that does make more money incoming. Currently the tax rate can vary depending on what your income level is. The proposed increase comes in surtax on incomes over $1 million.

The Obama White House and some Senate democrats contend this will help the country by increasing tax income and lowering the burden on working class Americans. The contention is that the “extremely wealthy” would take the brunt of this tax increase and it would provide income to create additional jobs. The idea is to also close some loopholes where wealthy citizens pay a lower tax rate. This is a point that they try to hammer home in every single speech that they make. The wealthy pay a lower tax rate, therefore they are not paying their “Fair Share.”

So how would this benefit the average American? Good question, here is how the current administration outlines it. By increasing the taxes on wealthy, it evens the playing field and forces them to pay more in taxes than the average American. Potentially this could result in increased tax income and could help create more tax refunds for the average American.

On the other side of the coin there is the conservative viewpoint. Raising taxes is not

You May Also Find These Documents Helpful

  • Good Essays

    Obama Care Pros and Cons

    • 2915 Words
    • 12 Pages

    In order to get the money to help insure tens of millions there are new taxes, mostly on high-earners. The taxes that may affect you directly are the individual mandate and employer mandate.…

    • 2915 Words
    • 12 Pages
    Good Essays
  • Good Essays

    The Flat Tax

    • 492 Words
    • 2 Pages

    Taxation has always been a major controversy. Just like any major corporation, the government is constantly looking to raise revenue. The easiest and fairest way to do this is by taxing the people. However, how the people will be taxed is always an issue.…

    • 492 Words
    • 2 Pages
    Good Essays
  • Good Essays

    Taxes are a big part of the government and economy. Donald Trump wants Americans to keep more of their money in their pockets and he wants to increase after-tax wages. Trump wants to add more jobs to the country and making America globally competitive again. Obama said "We have to set priorities. If we want a strong middle class, then our tax code must reflect our values." President Obama has passed a wide-ranging tax relief, but it is complicated and has multiple loopholes that mostly benefit the wealthy. A family making $50,000 a year received tax cuts equal $3,600 in President Obama’s first term, more if they were putting a child through college.…

    • 461 Words
    • 2 Pages
    Good Essays
  • Good Essays

    Most elected officials, when campaigning, claim to strive to lower taxes. However, the reality is quite different. With the budget and national debt, money has to be extremely divided in the federal government. In order for entitlement programs to continue to exist, they need public funding. Most of the country, especially those that depend on money from these programs want their existence guaranteed. Looking at the difficulty of shutting any federal program, officials have no choice but to continue the current funding of the program if they want to keep their approval ratings up. In order to get funding, taxes would either need to stay the same or increase. Many citizens believe that the federal government should tax the rich more, however the rich also help many officials when they’re campaigning and so they don’t want to get on their negative side. Elected officials are always in a tight spot when it comes to policy making because they cannot change one thing without it affecting another. The public will always be divided on the issues, so they cannot guarantee…

    • 655 Words
    • 3 Pages
    Good Essays
  • Good Essays

    The irony in tax cuts is that it actually helps the economy. The people generate the power to spend and spend, especially in this consumer world. When people start becoming more conservative and spending less and the banks are being more restrictive in lending money, the economy slows down. During the great depression, jobs were scarce because people did not have the money to spend. Ultimately, when the money is being used around and around, the economy is doing well. During the recession, the banks gave out loans to people so liberally, that eventually it backfired when the homeowners could not actually afford the mortgage. Economy was booming when people were crediting and weren’t thinking about saving, which ultimately led to the recession. They were basically…

    • 451 Words
    • 2 Pages
    Good Essays
  • Powerful Essays

    Advocates of this ideology say taxing the wealthy will make them unhappy with the country and will make them emigrate to a country with lower tax rate. Proponents of tax breaks say that when the affluent are given tax breaks the economy will prosper because the rich are more likely to spend. The tax break advocates say cutting the top tax rate will increase economic growth because when the wealthy spend their money, growth will occur in small businesses, which in turn causes wage growth, income growth as well as job creation. The advocates say that this all increases the tax revenue for the government in the end, so cutting taxes for the rich is the long term solution to the inequality between the lower class and upper…

    • 1358 Words
    • 6 Pages
    Powerful Essays
  • Better Essays

    Republicans believe government should tax only to raise money for its essential functions (Diamond & Gunther, 23). That is, Republicans believe government should spend money only to enforce contracts, maintain basic infrastructure and national security, and protect citizens against criminals ("Republican National Committee | GOP"). The literature of the House Republican Conference goes on to illuminate the role of the government and how tax policies affect individuals: The money the government spends does not belong to the government; it belongs to the taxpayers who earned it (Democrats vs. Republicans). Republicans believe Americans deserve to keep more of their own money to save and invest for the future, and low tax policies help drive a strong and healthy economy ("Republican National Committee | GOP"). Tax relief is the Republican route to growing the economy (Barton). A Republican government would reduce taxes for businesses to allow businesses to grow and thus hire more employees (Barton). Republicans also seek to limit income taxes for individuals so that people can hold on to more disposable income, which they can then spend, save or invest…

    • 1741 Words
    • 7 Pages
    Better Essays
  • Good Essays

    Donald Trump's Tax Cuts

    • 316 Words
    • 2 Pages

    The recent president-elect, Donald Trump, has proposed tax cuts both for corporations and individuals. His proposed plan calls for a corporate tax cut of 20%--from current 35% to his proposed 15%--and personal income tax cuts for all classes. These tax cuts are intended to boost the American economy by creating more jobs and increasing the GDP. Although whether or not the tax cuts will actually bring forth those benefits will be proved overtime, it is predicted that such drastic tax cuts will have a global economic impact.…

    • 316 Words
    • 2 Pages
    Good Essays
  • Satisfactory Essays

    Tax On Gasoline

    • 501 Words
    • 3 Pages

    To begin, by increasing the federal gas tax it may cause public transportation to lower their bus fare. By doing so, this will help the citizens who ride the bus save a few extra dollars. This may also help pay for the road improvements that may be needed. While citizens are continuously saving money the taxes are put on those who are not citizens which will help aid the citizen with less out of pocket expenses like taxes. This will enable the citizens to be able to spend their money other ways like on travel. They will be able to buy more gas or…

    • 501 Words
    • 3 Pages
    Satisfactory Essays
  • Good Essays

    I am conflicted on increasing payroll taxes for higher-income taxpayers. I would not knowingly work harder, obtain more education, and climb the ladder of success if I knew I would be penalized with higher taxes. Increasing tax responsibility for only the workers that make more money discourages workers to advance in their career, which would lead me to believe that such actions could be counterproductive.…

    • 476 Words
    • 2 Pages
    Good Essays
  • Good Essays

    They would mainly focus money to taxes when they should be focusing money on expanding buisness. Everybody knows that an individual can spend money more efficiently than our country knows how to. Without a high income tax , we would have more money for expanding buisness. Expanding buisnesses means more jobs plus the economy grows. When the economy grows that means a plus for everybody living in this…

    • 499 Words
    • 2 Pages
    Good Essays
  • Satisfactory Essays

    Many of these americans struggle just to get buy and with a new system like this it would need more funding which means more taxes added on to what is already being withheld from their checks that they desperately…

    • 898 Words
    • 4 Pages
    Satisfactory Essays
  • Satisfactory Essays

    Pestle Analysis Memo

    • 300 Words
    • 2 Pages

    After much research and seeking the advice of all of my colleagues I have come up with what I believe will be the best direction for the President to go in regarding this matter. First thing is first, it would not be a wise decision to raise taxes. The reason this will not be a good decision is solely because decisions need to be made that will not only benefit the government but the country and all of its residents as a whole. Although some of our people are able to pay more in taxes, not all of our residents in fact there are more individuals…

    • 300 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    Lowering Income Tax

    • 640 Words
    • 3 Pages

    “President Obama and Speaker Boehner have included the idea of lowering the tax rate. (PR Newswire 1). “Tax rates have actually gone higher when corporate tax first came out to present day. “[In 1909, the first] corporate tax [rate was] 1% for all business above $5,000, until today… $18.3 million in income paying 35%.” (1). Americans have been asked the question “Would lowering [the world’s highest rates] help drive unemployment below it’s currency” (3). Some pro’s to this argument is that by “lowering corporate taxes will result in the increase of investments in the U.S making more jobs, according to a 2006 article (3). “The average five-year unemployment rate decreased from 1987-1991 after the [U.S] lowered the income tax rate (3). This evidence from the article shows how much better it is to have the tax rate lowered, because we get more benefits from it. If rates were lowered now than it was from 1987-1991, Americans would actually try to get a job with the income tax being so low. In conclusion, “[The United States] has the highest effective corporate tax rate (27.6%) than 164 out of 183 [countries]” (7). This information proved, does not mean> we are better than the rest. It is just restating again, on how we are one of the biggest countries that are in debt because we do not know how to manage money correctly.…

    • 640 Words
    • 3 Pages
    Good Essays
  • Good Essays

    Why Tax Breaks?

    • 318 Words
    • 2 Pages

    Do you actually know the reason behind tax breaks? Currently, class warfare has being wage against the wealthy and middle classes. Tax breaks are not for all classes. The elimination of tax breaks could help settle the conspiracy issues of class warfare. Everyone wants to live a good life and have equal opportunities and furthermore, we all know that is not new in our society. In our society today, arguments are still going on between Democrats and Republicans about the elimination of tax breaks. And the dispute of tax breaks is not only between political parties, but also we the fellow citizens as well. However, many are claiming that it’s outrageously unfair. Tax breaks is the government way of lowering taxes for the benefit of everybody…

    • 318 Words
    • 2 Pages
    Good Essays