...Why Fairness Matters Progressive Versus Flat Taxes Robert J. Shapiro April 1996 Pro gres s iv e FOUNDATION Why Fairness Matters: Progressive versus Flat Taxes Progressive Foundation The Progressive Foundation works to develop and promote a new progressive political philosophy and governing agenda for America based on individual liberty, equal opportunity, civic responsibility, and nonbureaucratic governance. The substantive work of the Foundation revolves around some of the most difficult challenges facing America in the 1990s: assuring upward mobility for working Americans in the new world economy; resolving the great American dilemma of race; restoring a civil society and strengthening the social ties that foster a sense of community; finding America’s proper role in the post-Cold War world; and rethinking the size, shape, and mission of government in an Information Age. The Foundation explores public controversies over cultural questions—race, ethnicity, gender, religion, morality, and civic education—that are often ignored in conventional political discourse. The Foundation’s Project on Tax Reform and Economic Growth works to develop a tax reform program that is consistent with a progressive distribution of the tax burden, and can help promote stronger job and business formation, greater productivity, and higher family incomes. This report is the first of two new reports outlining the essential features of such a tax reform program. The preface contains more...
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...Global Issues, Role of United Nations and Japan’s International Contributions Contents Introduction 3 History of Overpopulation 3 Industrial Revolution 3 Invention of Birth control 4 Risks of Overpopulation 4 Food 4 Water Shortage 4 Civil Conflict 5 Poverty 5 Case Study 5 Government policies 6 Taxation policy 6 Education Subsidies 6 Government Transfers 6 Effectiveness Of Government Policies 6 Conclusion 7 References 8 Introduction Overpopulation as defined by Dhirubhai Ambani is “where an organism’s numbers exceed the current carrying capacity of its habitat” (Ambani, 2013) There are many causes of overpopulation and overpopulation occurs when the number of organisms is of too great a number compared to the relevant resources and as a result, resources such as the water and essential nutrients they need to survive are inadequate. This can be a result from an increase in births, a decline in mortality rates, an increase in immigration, or an unsustainable biome and depletion of resources. This paper seeks to discuss how overpopulation began as well as the risk it carries. History of Overpopulation Industrial Revolution Prior to the industrial revolution, the world’s population did not change much. This was probably due to the fact that resources were difficult to come by. People were worried their ability to provide for their families would not be adequate. Furthermore, poor nutrition and famines were common. The average life expectancy...
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...What are the Challenges in Designing an Effective Personal Income Tax System? Introduction Taxation, as a primary media of the implementation of fiscal policies of various national governments, generally has three primary functions, which come as follow: * Raise funds as a main source of fiscal income of national governments * Stabilize the market and macro economy against market failure * Distribute and redistribute the income among individuals to reduce social wealth inequality The priority of those functions varies from country to country and changes in different phases of social and economic development. For most developing countries, the widening gap between the rich and the poor is not only a major economic issue arousing public concern but also a major social issue. The developed west, yet is in need of effective taxation system to tackle with problems such as everlasting heavy deficit and dim market outlook. Table 1 World Gini Indexes for Major Global Economies in 1990, 2000 and 2010 Year | U.S. | Canada | U.K. | Switzerland | Germany | France | Russia | China | Brazil | India | Japan | 1990 | 42.8 | 35.2 | 36.5 | 34.1 | 34.2 | 29.2 | 25.9 | 32.7 | 60.4 | 31.2 | 26.4 | 2000 | 44.2 | 33.3 | 37.5 | 33.4 | 30.3 | 31.1 | 42 | 40.7 | 58.5 | 32 | 27.6 | 2010 | 47 | 33.6 | 35.9 | 32.4 | 30.5 | 33.2 | 35.9 | 48.1 | 49.5 | 35.6 | 32.1 | Among the taxes of all kinds, personal income tax is one of the most effective monetized tools targeting at individual...
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...Student’s name Subject Title Lecturer’s Name Date of submission Income Inequality Introduction The problem of an increase in household income inequality has been a major talk point in political discussion and public policy. According to Winston Churchill, inequality is unavoidable especially in capitalist societies. However, President Barrack Obama views inequality as not only a major problem but as a defining problem of this generation. It cannot be disputed that income inequality in the United States has been rising over the past four decades. The trend is evident when income is measured both before and after taxes. The income inequality in the U.S today can be compared to those of other developed countries. However, the country ranks amongst the worst in inequality especially after taxes and transfers. This means that less income that is received from higher income households trickles down to lower income earners. A recent study in 2011 revealed that the top earners income increased by around 275% after income transfers and federal taxes. Today, there is ongoing debate as to the effects, causes and solutions of the income inequality. Over the years, debates have arisen whether the income inequality gap in America is a social or an ethical problem. Despite businesses breaking profit records, these income gains have been concentrated on the top 1% (Glenn 58). It is often argued that income inequality is a social injustice and that it is unfair. However, social injustice...
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...communism, many countries applied the system of progressive income tax, which was earlier applied in Western Europe. But it soon turned out to be a system that discouraged economic growth. Therefore, some of these countries since 1994 have established the system of flat tax. Flat tax implies the application of a single-level tax system. Flat tax is applied in consideration of the supposition that all income should be taxed only once during their circulation, precisely when they are owned. Flat tax system refers to the unification of taxes in two taxing plans: personal income tax, which is levied on the total income of the individual and corporate tax, which is levied on the profits made by the companies. Flat tax was firstly applied in Albania during 2008 after two years of debates. The tax refers to the application of a 10% levied on the profit or on the total personal income. Keywords, flat tax, progressive tax, rates taxes, tax system in Albania, the consequences of taxation The notion of taxation has been known since the establishment of states. A social organization, as primitive as it may be, requires sufficient financial means to accomplish its goals. Taxes are a substantial means of providing the financial resources of a country. They occupy the leading place in the public income of modern countries. The great part of our neighboring countries and countries with quite a similar economic situation as ours are applying flat tax. So as to improve the economic situation and...
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...unfairness of the government through such actions. A good example is the recent decision made by the Massachusetts Senate on May 19 of this year where they voted to solidify the present income rate. The same to lower it opposes this to a plan. This action would help in saving more than 100 million dollars a year and the savings obtained would hence be used to benefit the middle and the low-income earners (Schoenberg). The proposal behind this plan is a progressive one, geared to benefit low-income earners. In order to carry this plan out, those earning high income would see an increase in their taxes. It is said that those earning more than 7778,000 would have to pay $961 more than those who are earning less (Schoenberg). Although many proposals just as this one are done through popular public opinion, it needs to be noted that the lack of education on the matter from our government creates a distorted reality as to who should and what should be taxed in order to increase revenue for spending. More importantly in our state of “tax-a-chusetts”, it is easy to believe that perhaps our government has lost balance over the concept of taxation and should scale back in order to decrease spending and the deficit we are currently in. In order to create revenue within any state, taxes are imposed upon the people in several ways. One of these ways includes fines and penalties obtained from offenders who fail to adhere to set regulations. Others include borrowing and government projects...
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...Chs 5, 6, 7, 8, 18 – Macroeconomic Components Problem Set Macroeconomics Ch 5 - Consumption Questions 1. When the C-line crosses the 45-degree line, saving is ______ . A. positive B. negative C. zero D. impossible to calculate without further information 2. When disposable income (DI) is zero, ______ . A. autonomous consumption is equal to induced consumption B. autonomous consumption is equal to total consumption C. induced consumption is equal to total consumption D. autonomous consumption is zero E. induced consumption is greater than zero 3. The minimum amount that people will spend even if DI is zero is called _____ consumption. A. autonomous B. permanent C. induced D. total E. special 4. According to the permanent income hypothesis, if a person won the lottery, they would spend _____ that year. A. all of the winnings B. some of the winnings C. none of the winnings D. more than all of the winnings 5. The permanent income hypothesis is a theory from economist _____ . A. Adam Smith B. John Maynard Keynes C. Thorstein Veblen D. Milton Friedman E. Karl Marx 6. Conspicuous consumption is a theory from economist _____ . A. Adam Smith B. John Maynard Keynes C. Thorstein Veblen D. Milton Friedman E. Karl Marx 7. In the U.S., the largest component of C is ______ . A. durable goods B. services C. nondurable goods D. inventory E. residential housing 8. The consumption function tells us that, as income rises, consumption _____ . A. declines B. remains the same C. rises but more slowly...
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...ACC 555 Entire Course Individual Tax Research and Planning https://homeworklance.com/downloads/acc-555-entire-course-individual-tax-research-and-planning/ ACC 555 Entire Course Individual Tax Research and Planning ACC 555 Assignment 1 – Tax Research Imagine that the Internal Revenue Service (IRS) has selected your client for an audit. Your client and the IRS disagree about the amount of tax revenue owed. You agree with your client’s position. You must provide a defense for the client that requires you to research the issues in order to render an educated opinion on a course of action for your client. Note: You may create and/or make all necessary assumptions needed for the completion of this assignment. Write a three to four (3-4) page paper in which you: 1. Prepare a defensible strategy for the client by using the six (6) steps in the tax research process. Propose how each of the steps provides support for the client’s position. 2. Create a fact-based argument that you plan to propose to the client as a defense of his / her position with the IRS. ACC 555 Assignment 2 – Tax-Deductible Losses Write a six to eight (6-8) page paper in which you: 1. Research the manner in which tax-deductible losses originally became part of the U.S. Tax Code. Conclude whether or not tax-deductible losses overall are reasonable. Provide support for your conclusions. 2. Suggest what you believe to be a significant tax-deductible loss. Discuss whether or not the deductibility...
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...Income tax is usually a progressive tax placed upon people who have an income. By being progressive, it means the more a person earns, the more they will have to pay in tax. Income tax is part of fiscal policy and is a major tool used by the government to influence economic performance. In the short run a reduction in income tax would certainly improve economic performance. A reduction in income tax will mean households have more disposable income and so will spend more. This is shown by a shift in aggregate demand from AD1 toAD2. This results in an increase in output and Real GDP of Y1 to Y2 however it also increases the price level from P1 to P2. In the short run this rise in prices is accompanied by a rise in output and real GDP and so is acceptable. However in the Long Run further rises in AD do not cause rises in output and real GDP, instead they only raise the price level This is shown on the above diagram, where the only rise is in the price level which is described by Monetarists as “the greatest economic evil”. As part of the fiscal policy, income tax rates are a demand slide policy, which are used mainly to influence economic growth in the short run. Known as Keynsian approach. Monetarists believe the best way to achieve Long term growth is through supply side policies. These include education and training schemes, corporation taxes and infrastructure. They are all aimed at increasing output and real GDP. As seen above Real GDP and output have increased with no...
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...Disadvantages of a Flat Tax System Polarization. Even though a flat tax system seems to be simple comparing with current tax system, there are still some disadvantages with this simplified tax system. A flat tax system could hurt low-income residents in some areas. From those low-income people’s perspective, flat taxes mean that they would pay more taxes than those rich people because they have less income to spend. Under current tax system, the policy makers believe that it is fair for those rich people to pay higher tax rate because they could bear it. While under the flat tax system, both high-income and low-income level residents would pay the same tax rate. Laura-Liana and Carmen indicate in their journal that this would be harmful for the society because flat tax system would hurt the society principle which is that higher income residents should help those people with lower income (Laura-Liana & Carmen, 2009). A flat tax system would leave more wealth to those rich people because of their high income and same tax rate and it would increase the speed for the polarization of wealth. Polarization of wealth happens when the rich people in the community become richer while poor residents become poorer. This would cause...
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...A STUDY ON PROGRESSIVE INCOME TAX A CASE STUDY OF US & BRAZIL ________________________________________ INSTRUCTOR: DALIA EL-EDEL ECON 310-02 TERM PAPER - BY: JIHAD MASHAMOUN 900-08-2910 LARA AZZAM 900-09-3033 LUJANE MULLA 900-10-1019 ABSTRACT There is no doubt that the widening income disparities were a major driving force fueling the recent uprisings within the Middle East. One solution that has been put forth for adoption is the progressive income tax. This paper intends to assess the theoretical bases and popular arguments surrounding this very dynamic topic. The first section provides a brief definition of progressive taxation in contrast with other forms of taxation. It also discusses the most dominant for and against arguments both from a theoretical and an empirical point of view. The second section provides a case study of progressive income taxes in a leading industrial and developed country; the US. The third section provides a comparative study from Brazil; an emerging economy that has recently adopted progressive taxation. Based on the theoretical analysis and the two case studies, the paper concludes by providing policy recommendations that should be implemented in order to complement progressive taxation and gain the best and most balanced results in terms of equality, efficiency and revenues. Finally taxation is only part of the economic equation; proper efficient tax system is only one step forward towards creating equal opportunities through proper...
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...Should We Switch to Flat Tax? In general, all over the world more than ninety percent of government’s income comprises taxes collected from the public and corporations. American economy is concerned; it is the largest economy in the world. Government collects taxes directly and indirectly from individuals and corporations. Government is not a business entity but the regulating authority of the country. Therefore, government needs to fulfill needs and wants of people through economic activities, regulating the country towards the economic growth. The government frequently changes the economic policies to run the country in an acceptable level. Therefore, taxes are the main weapon used to control the country. American taxation policy for more than decades is progressive. i.e., those who earn more income should have to pay more taxes. This is the main tax policy has been used in America, but tax rate is increasing at the end. Economists and politicians speak about a new topic i.e., flat tax revolution. What is this new tax? That is according to Sexon, “a tax that charges all income earners the same percentage of their income” (240). However, in practice, this is not a new theory; many countries have already been implementing flat tax as the government tax policy. The flat tax system operates well in many countries. Hong Kong introduced this flat tax system sixty years back and Eastern European countries have been using flat tax since the early nineteen eighties. The ...
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...Sarathchandra Should We Switch to Flat Tax? In general, all over the world more than ninety percent of government’s income comprises taxes collected from the public and corporations. American economy is concerned; it is the largest economy in the world. Government collects taxes directly and indirectly from individuals and corporations. Government is not a business entity but the regulating authority of the country. Therefore, government needs to fulfill needs and wants of people through economic activities, regulating the country towards the economic growth. The government frequently changes the economic policies to run the country in an acceptable level. Therefore, taxes are the main weapon used to control the country. American taxation policy for more than decades is progressive. i.e., those who earn more income should have to pay more taxes. This is the main tax policy has been used in America, but tax rate is increasing at the end. Economists and politicians speak about a new topic i.e., flat tax revolution. What is this new tax? That is according to Sexon, “a tax that charges all income earners the same percentage of their income” (240). However, in practice, this is not a new theory; many countries have already been implementing flat tax as the government tax policy. The flat tax system operates well in many countries. Hong Kong introduced this flat tax system sixty years back and Eastern European countries have been using flat tax since the early nineteen eighties. The...
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...Creating a business in the real business world is not as simple as people have thought. There are a lot of factors that need to be put into consideration. Financial standpoint, location, same business competitors, consumers, market demand and also, organizational structure of the organization that wanted to be set up should be carefully considered, researched and set goals to realize it as an organization. An organization should be looking the same goal and mission. Only then, a business would stand out among the competitors and be at the top of the market. Thus, in this paper, the plans and the factors that should be considered to open a family business will be presented in terms of organizational structure, stake holding personnel and policies of the country to operate the business. Organizational Goal, Values, Vision and Mission For the family business to be able to survive and sustain itself in the market, we need to set goals and missions for the organization to realize and carry it out. It is important that every person in the organization is working towards the same goal to be able to succeed as an organization. Without a goal, the organization will not be able to thrive forward. The employee within the organization will not be sure what to do. They might be heading in different directions and goals. Then, the organization will be in a mess and will not be able to stand tall in the market. To prevent that from happening, we need to first have a goal. So that, as an organization...
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...third-party verification of taxable income. There is a lot of that in Scandinavia, but even so Sweden remains an outlier. The second one only seems to apply to Denmark: It has a clean and transparent tax system, without many loopholes and deductions. This keeps people from sheltering their income. It also keeps high-income foreigners from coming to or staying in your country. (Native Danes, in contrast, seem to be quite attached to their homeland.) Third, the Scandinavian countries subsidize a lot of things that are complementary to work – such as education, child care, elder care and transportation – thereby compensating for their high taxes. Here again, they are outliers. Other Organization for Economic Cooperation and Development countries reach very similar participation rates with very low levels of such subsidies. Would those policies work in other countries? Perhaps. But perhaps they are all just manifestations of a highly productive public sector that the people like to put to use to do stuff. Furthermore, the high taxation caused a lot of issue. One of the issues is inadequate income, the total outcome of all of the effects listed below is a large tax burden. And only workers feel the brunt of this burden, because only workers create wealth. When all of these effects are combined, the tax burden on the average worker is currently about 73 percent of income. So people can't live on their incomes. Second, it also causes the issue of low wages. Multiple government levy so many taxes...
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