Pros And Cons Of Standard Deductions

Hoffman, W., Maloney, D., Raabe, W., & Young, J. (2013). Federal Taxation Comprehensive Volume. (36 ed.). Ohio: South-W

The main concepts of the article are describing the corporate welfare system and how it is responsible for growing economic imbalances between the poor and rich populations. The article elaborated on how we cannot ignore the issue anymore because of the substantial loss that we are facing by letting the gap grow (Huff, 1993). The article also goes into the IRS and how there are tax exemptions and deductions that people qualify for and what is allowed.

Income Tax Credit”. For the most part, it seems as though the general public is under

The tax policy in the United States is very confusing. When the tax policy was originally written in 1913 it was four hundred pages. Now, over the past ninety one years, that tax policy has evolved to over 72,000 pages. Since the tax code has become so lengthy and nearly impossible to understand, the topic of tax reform has been in the minds of many. Although, most barely think about tax reform until tax season. It is a controversial subject due to the impact a change in tax code would have on the American people. The two most popular and widely known stakeholders in this debate are the two major political parties in the United States, the Democrats and the Republicans. The two parties share absolutely no common ground on the subject of

One of the United States most effective tools is The Earned Income Tax Credit which encourages work and improvement of family (Center for American Progress, 2016). In the year of 2014 Earned Income Tax Credit helped more than 6.2 million Americans in the fight against poverty (Center for American Progress, 2016). A disadvantage to the Earned Income Tax Credit, is experienced in workers whose income is relatively low without qualifying children (Center for American Progress, 2016). In these instances

One of the major problems that this act of legislation causes economically is an unequal taxation of different groups based on their income. Those who make $400,000+ are taxed a rate of 39.6% of their total income. (H.R 8, 112th Congress) This does not incorporate sales tax and property taxes that are also taken each year as well. In the book “Economics in One Lesson” by Henry Hazlitt, one topic that is discussed is how taxes discourages production. In the case of The American Taxpayer Relief Act of 2012, those who are of working class category will not see a change in their tax rates. This is great since the monetary funds that they do not pay in taxes they can either invest or use in the market. However, the taxes for those who are of upper class status have the burden. As Hazlitt

Introduced in July 2012, H.R. 8, the Job Protection and Recession Prevention Act of 2012, sponsored by Representative Dave Camp of Michigan, was approved by the House of Representatives in August 2012 and forwarded to the Senate for consideration. Opponents of H.R. 8 maintain that the plan does not provide tax cuts for all American taxpayers while supporters on both sides of the aisle argue that these changes to the Internal Revenue Code are needed to sustain the nation's economic recovery and prevent another recession. To determine the facts in the debate over H.R. 8, the Job Protection and Recession Prevention Act of 2012, this paper provides a review of relevant governmental and media sources, followed by a summary of the research and important findings in the conclusion.

In contrast, expenditures on the Earned Income Tax Credit (EITC) have grown sharply from $5 billion in 1975 to $45 billion in 2005. No other federal antipoverty program has grown so rapidly. The EITC is now U.S.’s most immensely colossal cash antipoverty program. The incentives embedded in the EITC differ from those in AFDC/TANF. AFDC recipients with no earnings received the most astronomically immense welfare payments. In contrast, the EITC inspirits less-adept workers to enter the labor market, since nonearners do not receive the credit and the EITC amount elevates with earnings up to about the impecuniosity

However, this system of measuring poverty is flawed because if a family makes a dollar more above the set limit, they do not qualify for financial help from the government (NCCP, 2008).The poverty threshold is an inadequate measure of whether people are considered poor or not. Current poverty measures are flawed because it assumes how much a family spends and does not accurately include family resources such as Earned Income Tax Credit (NCCP, 2008). The way that the government measures poverty is based on outdated information that was set in the 60s. Because it has not been sufficient to keep up with the standard of living, those who are living in “high cost cities like New York and those who live in rural areas of the country” (NCCP, 2008) are barely getting by.

For this population, the Earned Income Tax Credit is far from being realized and in most cases, it is never introduced. One of the main reasons for this is because the majority of Supplemental Security Income (SSI) and Social Security Disability Insurance (SSDI) recipients have not been part of the workforce and for the ones who do work part-time – due to income restrictions, miss out on the tax credit or are disqualified for not meeting the required

The EITC is a tax credit for low to moderate income earning individuals and families. This credit is a refundable tax credit, meaning that citizens may have their federal taxes lowered, brought to zero, or even earn a refund if it exceeds the amount of taxes owed. The credit amount is dependent upon a beneficiary’s earned income and number of children. Earned income includes all the taxable income and wages a person receives from working for someone else or if they own or run a business or farm. In order to receive the tax refund, workers must file a tax return, even if their income is less than the filing requirement. The EITC is structured with a phase-in, meaning that as a taxpayer’s income increases, the value of the credit the taxpayer earns increases until it hits the maximum

For a start, as my policy analysis term paper, I subjectively selected the Earned Income Tax Credit (EITC), based on my personal experience with the policy and from curiosity as how the mechanisms of the policy truly operate. With that being said, “the United States federal Earned Income Tax Credit or Earned Income Credit (EITC or EIC) is a refundable tax credit for low to moderate income individuals and couples – particularly those with children” (IRS, 2013). In this paper, I will first introduce the Earned Income Tax Credit policy followed by the description of the problems/social inequalities that necessitated the policy. Next, I will then describe the policy in great detail, list the policies objectives/outcomes, and discuss any complications

The United States tax system is in complete disarray. Republicans and Democrats agree that the current tax code is complex, unfair, and costly. The income tax system is so complex; the IRS publishes 480 tax forms and 280 forms to explain the 480 forms (Armey 1). The main reason the tax system is so complex is because of the special preferences such as deductions and tax credits. Complexity in the current tax system forces Americans to spend 5.4 billion hours complying with the tax code, which is more time than it takes to manufacture every car, truck and van produced in the United States (Armey 1). Time is not the only thing that is lost with the current tax system; Americans also lose

Low-income individuals and families must spend money on the same necessities required by higher-income people. The poorer taxpayers will have a limited amount of money left over to pay taxes even though its at the same rate of the individuals earning higher income amounts.

When it comes to income taxes, the focus is usually on jobs, personal investments, and savings. The debate on who should bear the greater burden when it comes to income taxes is timeless. If all types of tax are aimed at developing the economy, it should be everyone’s equal responsibility to engage in taxation regardless of one’s economic class. Both parties involved proclaim the legitimacy of their arguments. The articles under discussion are representative of this debate. On one side of the debate, there are those who feel that the rich should pay more taxes. Then there are those who feel that the rich should not be punished by shouldering the burden of taxation (Benson and White 1). From an economic theorist’s point of view, both articles articulate valid arguments. However, this does not nullify the significance of the prevailing economic situation. The above debate can be based on various economic contexts.