Explain Why Aggressive Income Pays The Highest Amount Of Taxes Vs Flat Tax

business and causing many workers to lose jobs. In this paper I will point out

Regulating a variety of aspects of business and society is an old and often controversial aspect of government, particularly at the national level. Much of what the national government does, or fails to do, has an impact on individual citizens, private corporations and other business enterprises, agricultural producers and marketers, foreign governments, labor unions, and state and local governments.

How and to what extent the government does intervenes in the economy. Political factors can be tax policy, labor law, environmental law, trade restrictions, tariffs, and political stability. Political factors that are found in the JetBlue case are:

The Texas Constitution was amended in 1993, during Governor William P. Clements’ second administration, to prohibit a state income tax. Therefore, any such proposal would have serious difficulties passing both chambers of the legislature and then it would be subject to ratification through a statewide referendum. Texas’ lack of a state income tax seems to have enhanced its economy vitality with this approach. It also lacks a corporate income tax, which is not prohibited by the Constitution. Texas is one of seven

Residents pay less in taxes than the states that have a state tax. All states must generate revenue and they do so through various taxes including income taxes, sales taxes, and property taxes, just to name a few. (Longley) Texas has a state sales tax rate of 6.25%, but once you add in taxes from counties, cities, transit, and special purpose districts, the tax rate reaches 8.25%. (Texas)

In states without state income tax, higher sales, property and other assorted taxes can exceed the annual cost of a state income tax. Texas is one of seven states that do not levy an individual income tax. The Tax Foundation, a conservative-leaning research group, ranks Texas ninth-best on its State Business Tax Climate Index, largely because of the state’s lack of an income tax. On three of the foundation’s other major rankings — property taxes, sales taxes and corporate taxes — Texas ranks in the bottom 20 states. Texas does not have a statewide property tax, but local property taxes remain a crucial complaint among businesses and homeowners. (Terrence, 2002) The main benefit is that states with no income tax become a beacon for growth. They 're better at creating jobs and keeping a core of young, educated workers from moving to other states. The issue is undoubtedly controversial. Public opinion usually swings with the size of one 's paycheck and the role people think governments should play in shaping society. Texas has an above-average sales taxes, and Texas also has higher-than-average effective property tax rates. Cutting the income tax will boost take-home pay for everyone. It 'll make the state more attractive than its neighbors, creating jobs, drawing new businesses, and sparking an influx of talented workers.

In Erica Grieder’s book, she points out that Texas has a governing philosophy called the The Texas Model where it calls for low taxes and low services (23). It can be said that this would not be deemed helpful for the people, since many require the public services of the government, especially in the fields of education and health care. However, Grieder states that statistics show otherwise, the model is working for Texas. Apparently, Texas is highly averse to taxes, part of the aversion due to the limits in taxing authority of the state itself, which also helps to create a business-friendly state. Due to the

(A) Using your own numbers, show clearly why such a tax is regressive. (15 points)

The United States government has passed 81,883 rules over a nine year span according to audiotech.com. All the regulation passed the last nine years cost the average business owner with about twenty employees over 212,000 dollars extra per year. In total American business owners had to pay over $1.75 trillion to comply with government regulation. The involvement of government in business operations is becoming counteractive. It should be up to the business owner on how he would like to promote his business because it’s his investment that is being but at risk. The government has increasingly been interfering and passing laws on how businesses should operate, from smoking bans, medical coverage too how a business can hire or fire people. The government shouldn’t be so involved on how business operate to include the processes of hiring and firing employees.

There is a large ethical question that is brought up when you consider a sales tax or consumption tax to be the sole source of revenue for a state. The State of Texas uses a sales tax to generate its revenue, which is used for many public services that are needed to keep our family safe. Many people feel that this tax form is unfair to the poor, because they are having to pay the same tax as someone who makes much more than them. At a glance, this really does not seem fair, but when you look deeper you can find other ways that this type of taxation is more fair than an income tax would be.

In a progressive tax system those who earn more, give more back to the government. Some may argue that this is punishing hard work, however this is not true because those people will still have a higher income than whose at the middle or lower class and much higher income than what the lower class people would have with a flat tax system. Personally it doesn’t seem like that big of a sacrifice when you take into consideration everyone else's position. Furthermore, it would also reduce income inequality. Income inequality simply refers to the part of the population that controls the larger share of the economy's wealth.

Government intervention could put downside pressure on the stock. Possible government intervention increases risk, because the government is a big customer and has a history of making adverse changes to the operating ability of companies in every industry. A government regulated industry increases political risk, because government actions may not be in the best interest of citizen of that particular country. Governments are usually inefficient with spending money.

·         The government also imposes regulations which might form/deform the shape of the industry thus affecting it negatively positively.

On the other hand, one cannot deny that there are distinct disadvantages to the flat rate of income tax. The main argument is that despite its appearance, the flat tax is essentially a regressive tax.

Having government involved in the economy has its pros and cons. One of the Pros is that the government can help prevent or discourage harmful behaviors or actions. Government regulation can prevent man-caused shortages. Fishing regulations are often put in place to prevent overfishing. These regulations prevent or discourage fishermen from fishing too much in one season, which allows the fish to repopulate and remain available in the future. In the book, Wheelan mentioned how the government can also tax bad behaviors to encourage behaviors that benefit health and/or the environment. An example of this is a tax on gasoline and/or larger vehicles, or a tax on cigarettes.