Effects of Raising Corporate Tax Rate
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...