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Tax Reform

In: Social Issues

Submitted By Ayva
Words 2398
Pages 10
The purpose of this paper is to briefly describe the economic problem of tax reform in the United States of America. First, I will give a description of tax reform in the United States of America. Second, I will assess the impact the problem poses to society. Third, I will design an economic policy solution to the problem. Fourth, I will analyze the economic theory used to complete the policy solution and determine the impact on the appropriate stakeholders. Last, I will analyze how the economic policy proposed would solve the economic problem.
Tax reform is the process of changing the way taxes are collected or managed by the government. Tax reformers have many different goals. Some seek to make the tax system more progressive or less progressive. Others want to simplify the tax system and make it more understandable or more accountable. In the United States, it is required for working citizens to pay taxes. Taxes are generated from an individual’s income or from sales. These taxes go towards the local, state, and federal government. The purpose of taxes is to fund the government, the military, and services to low-income families. Programs such as food stamps, housing, Social Security, public school, and healthcare are available due to taxes. The tax system is based on the “ability to pay.” As an individual’s income increases, so does their taxable income rate. The current economic situation of the United States can be blamed on a multitude of variables and is the fault of numerous politicians from the democratic and republican parties as well as some special interest groups with lobbying power, including several Presidential administrations. There are many benefits for the individuals, businesses, and government when it comes to tax reform. The benefits for the individual would be a simpler system, making paying taxes easier for everyone, and bringing...

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