In his 2015 State of the Union, President Obama discussed the tax situation of our great nation. The article, "Tax Loopholes the President Left Out – for Now", discusses President Obama's proposed tax plans in economic terms. In very general terms, President Obama mentioned closing loopholes on taxes for the wealthy and big end corporations. By closing these loopholes, the President claims that he will be able to lower the tax rate for middle class families since the upper class will be paying its correct amount. According to the article, it will take a lot of tinkering and adjusting to fully close these loopholes. If President Obama's plan is put through, the projected tax revenue will increase from $1.4 billion to $320 billion over the next ten years.
My analysis is mostly positive for this plan. Our country does need more revenue in order to decrease the national debt. However, I feel that it is unfair to overtax the wealthy just because they are successful. If this plan is just closing loopholes that corporations and wealthy people use to get out of what they really owe, I am fine with that. I would have a problem though if they are just raising taxes on the wealthy just to cut those of the middle class. Income inequality is an issue, but I do not believe that increased taxation is the correct answer.
I tkink that closing the loopholes is definitely a good idea. I'm actually shocked at how much money the wealthy are keeping from being collected. It's shocking and a little sickening that the people who are most benefited by the system won't even pay what they owe it. I understand why people say we shouldn't tax the wealthy, but if the 'wealth effect' kicks in as it usually does, then tax raises on the wealthy won't negatively affect their spending if they're comfortable with their stock. And more than half of millionaires (who probably know something about money) think that raising taxes on the wealthy would help. http://www.huffingtonpost.com/2014/05/06/millionaires-taxes-survey_n_5272647.html. The difference between Democrats and Republicans in this article is also interesting. If I ever earned millions, I would be fine paying higher taxes because to not do so would be selfish and uncharitable.
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DeleteI think the new taxes are a good idea. They will hopefully stimulate our economy so it can boost, then we can start digging ourselves out of debt. The tax inequality is a problem, but as it is still a work in progress, I'll accept it.
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