Taxes essay
The presidential election will be decided on Tuesday, November 6th, 2012. There are many crucial issues the new president should address immediately. Thus, this paper is meant to speculate on the issue of taxes. This paper asserts that simplicity, tax law reform and confidence have to become the priorities for the novel administration. Additionally, the president has to enlarge the alternative least tax patch, reorganize an estate tax and resolve the expiring tax provisions after the election.
Obama’s and Romney’s Tax Plans
Small businesses are a locomotive of economy and need policies and investment, which assist them hiring and expand. Obama cut the taxes for small businesses eighteen times, and under his management the Small Business Administration supported the record volume of the small business lending in 2011. He also signed legislation permitting small businesses to right away subtract the total cost of key equipment last year. Additionally the president has reduced the taxes for a common family by approximately $3,600 over the last four years, and he has called on the Congress to expand the middle class earnings tax cuts to stop the tax augment on families earning less than $250,000 annually – 98% of the US families. The jobs plan would enable the farms and other small businesses to instantaneously write off a hundred percent of the cost of novel investments – counting in novel farm equipment and buildings (Barackobama.com, 2012).
Mitt Romney has offered the “revenue neutral” $5 trillion tax cut favoring rich people, which he asserts he will pay for by selecting tax subtractions and the loopholes. But Romney will not clarify which ones as he knows math does not add up. Actually, the tax cuts for the rich people are so huge that paying for the plan would demand raising the taxes on middle-class family units with youngsters by a standard of $2,000, according to unbiased tax experts. The plan to cancel an estate tax would cost approximately $150 billion over the following decade to assist the richest families in the USA (Barackobama.com, 2012).
Crucial Tax Issues
Simplicity, confidence and tax law reform should be the priorities for the novel administration. There are several basic moments that deserve the president’s concentration: setting the direction for the evolvement of the taxes; avoiding the complexity of one of the hardest tax regimes in the globe; taking steps to enhance the manner the tax law is created; cooperating with tax community to make taxation more certain and guaranteeing the USA carries on having the tax scheme dependent on law (Keightley et al., 2012).
The US economy will still be in depression once the following president takes the office. The novel economic incentive package could assist in speeding the recovery in the recent future, but would add to the already exploding national shortage. In the long run, the amplified debt and indefensible fiscal way people are on will cause slow financial development and put us at the risk of losing global investors’ assurance in dollar and administration’s debt. If the president enacts the stimulus program, the country should have something to show for it later (Keightley et al., 2012). Therefore, to the greatest degree possible, carefully targeted investments should get superiority over more consumption.
In the tax policy, three major issues have to be addressed right now to avoid possible damaging outcomes of existing law. Additionally, tax alterations have to make budgets transparent to make it more difficult for all politicians to avoid addressing fiscal inequities (Keightley et al., 2012).
Make the alternative least tax patch bigger. The AMT is projected to hit too many taxpayers by the next year. The patch could be enlarged through the following year without any link to the explicit revenue offset if President counts it in the budget.
Reorganize an estate tax. Tax plans expired at the end of 2009 and in 2011 reverted to much higher taxation. This temporary suspension created strange incentives to keep dying humans on life support as 2009 winds down and disconnected others before the finale of 2010. The president should work out a reasonable compromise to enact a permanent estate tax law after the elections (The Associated Press, 2012).
Resolve the expiring tax provisions. Congress should either make enduring or eradicate every expiring provision – counting the Bush tax cuts. In an ideal world, congress should have performed before the scheduled expiration of Bush tax cuts to avoid the temptation merely to extend it one more year. Resolving expiring provisions explains what a tax law will be in the future.
Conclusion
So, this paper discussed the issue of taxes. This paper asserted that simplicity, tax law reform and confidence should become the priorities for the novel administration. Additionally, the president has to reorganize an estate tax, enlarge the alternative least tax patch, and resolve the expiring tax provisions after the election.
The president has to admit the fact that higher taxes for the wealthy are a priority (James, 2012). In due course, the existing tax system has to be reviewed and altered to make it easier, fair, and up to date and in tune with the international economy, and responsive to the damage entitlement programs will have on federal revenues as baby boomers leave. Thus, the President should the planning of the tax reform today.
