To Tax or Not to Tax

Topics: Tax, Taxation, Public finance Pages: 4 (1189 words) Published: March 31, 2013
To Tax or Not to Tax: The Problem of America
Money, like a cookie, is something everybody wants, and when it is gone a person blames everybody else for its absence; realizing later they were the one to consume it in the first place. Taxes, since the beginning of an organized economy, have been argued over for centuries. At the end of 2012 after surviving the “end of the world,” tax payers were faced with another apocalyptic situation, the Fiscal Cliff. It had the potential to raise taxes to outrageous rates, and despite the dismissal of the Cliff, the issue had just been pushed onto the back burner of the economy and will be readdressed later this year. On one hand, by keeping low taxes the state is unable to create a sufficient amount of money to pay off its debt. Instead, many people argue that by raising taxes the increased prices of items will actually harm the nation’s economic recovery (Russell).Taxes should be increased because facing the national debt is inevitable and the country is will be unable to recover from the mounting debt until it’s citizens help bring it back from its economic grave.

Taxes are directly connected to the economy of a nation, and due to this many people argue that the government needs to cut spending on government programs that are causing the debt to increase. Yet, it was revealed that automatic budget cuts were part of the Fiscal Cliff, and would have saved $109 billion in federal spending on defense and non-defense programs alike. ("President To Make Argument For Fiscal Cliff Plans”). Ironically, people argued that the government needs to cut, but as it was revealed that is exactly what the cliff was aiming to do. The Fiscal Cliff could have cut unnecessary costs causing the debt to lessen, and in turn reduced swollen deficits (Dixon). This reduction can decrease the debt but even with the removal of these programs the large debt the nation has would be unable to be quickly and efficiently taken care of at current tax...
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