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Should Income Tax Raise On Individual Making $250000

2906 words - 12 pages

Assignment 5: Persuasive Paper Part 3: Possible Disadvantages, Answers, with Visuals
Strayer University
August 31, 2014

The topic of taxation is a very controversial subject. Due to its complexity, people from the left to the right have objected to it. There was a time when the federal government was funded only with revenue from imported products. A little bit of history informs us that income tax started in 1861 with the Civil War, when congress passed a bill required everyone to pay three percent of their income starting at $600 to $10,000 each year (Boortz & Linder, 2005). Since the end of Civil War, the battle began to get rid of the income tax. The truth is that the tax takes ...view middle of the document...

In order for the United States to be a world leader, it does not come without cost. Today, to understand the importance of taxation we must first understand the roles of government and the challenges that it is facing. Government has many roles in society such as public safety; enforce the laws, and providing all other public goods that are uneasy or impossible to sell on the private market. A look back on our history tells us that income tax came to life because of the need to cover the cost war, and the growing threat the country was facing. Presently, these threats continue and even grew with the September, 11 2001 attack on the World Trade Center, which lead to the war in Afghanistan and later the war in Iraq (Johnson & Kwak 2012). The U.S. government and American people must sacrifice themselves to step up to the challenges in order to remain competitive in the geopolitical world. The challenges are characterized as Economic, Social, and inequity.
First Problem-Economic challenges. Although purchasers, manufacturers, and producers of goods and services make the majority of decisions that shape the economy, government actions have a powerful impact on the U.S. economy in many areas. Included in these activities is stabilization, growth, and maybe most importantly, the federal government guidelines of economic activity, price stability, seeking to maintain constant growth and high levels of employment. Government has the obligation address the fiscal policy, which includes adjusting spending and tax rates; control monetary policy that also includes the money supply and monitoring the use of credit. It has the capability of slowing down or speeding up the economy's rate of growth (Joseph 2008).
Americans are proud to say ‘America is the greatest country on earth.' Today, in the wake of the debate over the income taxation, people need to ask themselves that question, what in the world makes America great? It is not just the size of the territory or the quantity of States; it is the capacity to carry out the mission in front of the so-called World leaders. For all of that to happen effectively, America needs to be financially stable. On a report appeared in 2010, official figures showed that the federal government was $1.3 trillion for a difference between $3.5 trillion of spending to $2.2 trillion in revenues. A total of near 24 percent of the gross domestic product (GDP) which was the second largest after 2009 since 1946 (Johnson & Kwak 2012). So, the needs to tackle the deficit are widely present.
Second Problem-Social Challenges. Three years ago, millions of Americans across the Country were watching the devastation of hurricane Iren sweeping the coastline from North Carolina all the way up to New York. Experts said that it was one of the most-expensive hurricanes in U.S. history. Thus, the government needs to be preparing for these unpredictable catastrophic. People expect the government to step up when natural disaster goes...

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