Tax Law Changes of 2012

The current tax code for the United States is almost 74,000 pages long. Or to put that into a different light: About 116 copies of Herman Melville’s Moby Dick. It is small wonder that a few of the announced candidates for President of the United States, have again begun to kick the tires on the topic of a Flat Tax. But is a flat tax actually a solution to our country’s growing tax complexity? What are the potential economic effects of a flat tax (both positive and negative)? Finally, is a flat tax even a viable solution? In short, will it work? As a concept, a flat tax is spectacular. Simplicity at its finest. As a fiscal policy, I believe that same simplicity must be examined and inspected closely.

(Black, 565-483) This means that every working family still pays taxes, however their taxes would be cut, meaning they would be paying less taxes than before. As for the “ millionaires” and higher class of society they will still pay the same taxes as they did before. This policy is more likely to be considered as equal because it is not rated fair when people from different social classes with a big difference in their incomes pay the same taxes. Especially because the taxes will eventually be lowered for the lower classes because they would be unable to afford paying the regular and high taxes. This will also lead in the cut of taxes for the high social class, which then makes the whole concept unequal. Not just for the people but also for the national economy (Witcover, 791-545).

President Obama has introduced a variety of fiscal policy changes during his presidency; some of his ideas, however, did little to strengthen the economy as they were intended to do. For example, in 2001, as President Bush had just entered office, he ushered a reduction of income tax rates in addition to other tax cuts for the middle class, through Congress. While these policies were initially quite slow in boosting the economy, the economic benefits eventually began to surface around 2003 and the economy did begin to exhibit stronger growth. However, President Bush’s tax policy was set with an “expiration date”, set by Congress through a budget process called “reconciliation”

In Title IX named, Revenue Provisions, will provide a middle-class tax cut to help those families and small business owners have more affordable insurance coverage ("Read the Law | HealthCare.gov", n.d).

Similarly, the Obama administration recommended significant tax hikes, planned for the future. Some of the items that the Obama administration had recommended were tax hikes on included liquor, cigarettes, plane tickets, and soft drinks. Furthermore, the many tax breaks that had been enacted under President Bush were discontinued. President Bush had implemented tax cuts on capital gains tax, income tax, and estate

Cutting down individual taxes will generate more employment and will help generate more money, it will create more tax revenue, according to Mike DeBones, from “House Passes 2018 Budget, Taking a Crucial Step toward Tax Overhaul.” He states that “Our budget specifically paves the way for pro-growth tax reform that will reduce taxes for middle-class Americans and free up American businesses to grow and hire,” House Budget Committee Chairman Diane Black (R-Tenn.) said during floor debate Wednesday. I agree if the tax is

Additional taxes were also created for people with high incomes. The wealthy are helping to support insurance for the poor. The ACA is subject to changes every year. The legislation can make minor changes, and budget decisions can affect how it is implemented. Changes in the healthcare field, along with changes to the presidential administrations and Congress make it likely that the ACA may be adjusted at any time in the future.

As of January 2014, The Patient Protection Affordable Care Act, also known as the Affordable Care Act (ACA) was signed into effect to help lower income families be able to afford health care. The ACA was signed into effect with the idea that everyone needs health insurance at an affordable rate. There are some factors that were not taken into consideration about what it might cost to help lower income families. President Obama signed the ACA into effect as of March 23, 2010, with hopes of cutting our federal deficit down and to save lower income families money. With the new ACA in effect the ones who are dealing with the after effects are the businesses who now have to offer insurance and middle class who do not qualify for the lower

It also will cut income tax rate, make the standard deduction double, and take away personal exemptions. Since there is less taxes being collected, there will be less money the government can spend. The less the government can spend the less, they can help citizens of America. The tax relief policy affect America as a whole negatively. Furthermore, the tax makes it, so the government collect less revenue, which is bad for programs that are put to help people.

The Earned income tax credit can be defined as a way for workers who have a moderate annual income rate to receive a reduction in federal income as well as their payroll taxes. The credit was established with specifically low-income status workers as the main target, and this was due to the fact that the EITC is a refundable credit. Since its establishment in the year of 1975 the EITC has been modified about several times, it was originally set up with a goal to combine an incentive for having employment as a low-income workers who had children, with the anti-poverty effects of having negative income taxes. It was deemed the best pro family and anti-poverty measure that was produced from the acts of congress, and is a key part of the economic

This website offers honest feedback on the details of tax cuts and job act. The Tax Cuts and Jobs Act is a tax plan, which would spur an additional $1 trillion in federal revenues from economic growth. These new revenues would reduce the cost of the plan. The tax plan limits several other deductions and, in some cases, eliminate. It also expands the child tax credit from $1,000 to $2,000, while increasing the phaseout from $110,000 in current law to $400,000 for married couples. The first $1,400 would be refundable. Several sections for this website address the process and give good insight

This may sound like a tax plan that will relieve the financial burden on lower-income taxpayers, directly benefiting the poor, but in actuality, cutting taxes for all in a regressive manner gives substantially more money to the wealthiest taxpayers and a very small amount to lower income taxpayers. According to his plan, a typical American family of four will be able to keep at least $1, 600 more of

The encouragement of economic disparity because of these tax cuts is bad for America. The US should be aiming for more social and economic equality for everybody. Tax cuts can slow down the economy by putting more money into the wealthy peoples’ hands and giving less to the people who need it.

This paper examines the generally accepted desirable characteristic of a system of taxation. I describe in this paper that even where every one agrees that the tax system should be simple as dictated by the first maxim of Adam Smith, no country is yet to meet this standard. Questions on policy, complexity, equity, administrative efficiency, cost of compliance all increasing the cry for a tax change. Many Eastern Europeans have adopted the flax tax system and presently has an increase economic growth. However, are they fully operating the flax tax system?

Dana was a student studying a music degree and she had been playing with her two friends in a band called Gilligan’s Island (GI). After a few years playing for family and friends’ parties, GI produced and sold their CDs and entered into a contract agreement with Big Label Company. This essay discusses the taxation implications of Dana and GI’s transactions, whether there are ordinary income and/or deductions, in the tax year of 2013, 2014, 2015 and 2016.