Saturday, September 10, 2011

Which tax laws are balanced and fair

Economics: Fair Tax:?

No one wants to be taxed more than another person however there are disagreements over which tax laws are balanced and fair based on the economics surrounding an individual and/or company. For example, increasing a tax for exported items rather than imported items would cause those receiving the goods to pay for the tax increase. If the items imported were taxed, this would directly impact the US, but if only the exported items had a tax increase it would not affect the people of the US and their budgets. However, if the countries we import items from did the same thing, the US would still have to pay those taxes. If a country the US trades with had the same thought process and philosophy, the US would still have to pay higher taxes and it would achieve nothing to only increase the export taxes.
In regards to tax equity, the closest principle to my opinion is the ability-to-pay principle: “those who can afford to pay more taxes than others should be required to do so” (p.357). Especially in this economy, many families are struggling to make ends meet. Those who are making $30,000 a year to support a family of five should not be taxed the same as those who make $100,000 a year to support the same size family. Those who make more money may live a more lavish lifestyle, but each of their pennies do not count towards simply making ends meet. Those who make more money should be required to pay more because everyone has the right to live in a safe neighborhood with power and running water. These are basic necessities. Those who make a large amount of money already can afford the basics, but do not need their three cars, large mansions, etc. I realize this is more of a democratic political view, but the main point is we all deserve to live safely and securely. Having those extra luxuries are just that-luxuries.
Reference:
Collinge, Robert A. & Ronald M. Ayers. Economics By Design: Survey & Issues, 3rd Ed.
New Jersey: Pearson Prentice Hall, 2004.

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