Sample Coursework Essay Paper on Tax and Tax Effects on Federal Deficit

Tax and Tax Effects on Federal Deficit

Mr. Donald Trump’s one-time theory of taxing Americans with more than $ 10 million would not be an efficient way to raise tax revenue. One time tax on specific persons violates the general principles of taxation in equity and neutrality (Lyon 24). It violates equity in that, all individuals do not feel the burden of the tax, but a selected few; this leaves the others with the option of just sitting back and enjoying. One time theory also violates neutrality canon in that; the tax would be favoring one group while discriminating those that lie below this cut-off of worth. The discrimination will lead to a set of tricks to evade the tax. For instance, persons with this kind of worth would result in moving money around until they are worth less than $ 10 million (Baram 1). The movement of money would in turn force a big set off of assets especially stocks, leading to liquidation of a business.

The federal government should heighten the service provision to foster the quality of life for the less fortunate. Promoting training and educational assistance to help the unskilled obtain and hold jobs will create a larger tax base. Many employed people will increase the proportion of tax revenue collected. Also, people with skills even in high unemployment can apply these skills in self-employment. Self-employment generates not only revenue to the state but also developments. The welfare of these unskilled persons is improved, which rids the government the burden of providing social amenities as they can effectively cater for themselves.

Care for the elderly is important as these persons have certain wisdom and knowledge. The elderly are experienced and can be called upon to give insights in changing economic times (Brooks, Neil & Hwong 30). The elderly have lived in different economic times; times of recession, times of moderate economic times, and times of economic boom. Therefore, they have in their possession first-hand information that can be used to combat the changing economic tides.

The increase in health coverage for the poor is an important step in ensuring that the country is healthy. A healthy population is a productive population. The poor provide the market for labor; labor that leads to tax revenue through employment income.

The federal government would have to outsource funds to cater for the above and other several service initiatives. Borrowing would increase the deficit (Kessler 1). The cause for this increased deficit is because the initiatives are not immediate investments. That is to say, the initiatives will not guarantee returns in the near future. It is not a give and take situation and in return, therefore, the expenses will outdo the receipts.

The burden is worth being placed on all citizenry. Failure to contribute towards the alleviation of the status of the poor, the unskilled, and the homeless is equally deteriorating as paying extra income as a tax. Poverty and homelessness will increase such social crimes as robbery with violence. High level of unemployment due to lack of unskilled population will bring down the GDP and hence the welfare of all. Poor health translates to unproductive population, unproductiveness results to stagnant development. In general, these initiatives are a necessary burden worth taking since the issues so attended to have a universal effect on the economy. Failure to combat these issues brings about society ills that influence the way the economy behaves starting from the community shop in the village to the multi-billion companies.

Works Cited

Baram, Marcus. ‘Trump’s Flip-Flop on Taxes for the Wealthy.’ The Huffington Post. N.p., 2015. Web. 11 July 2015.

Brooks, Neil, and Thaddeus Hwong. “The social benefits and economic costs of taxation.” Ottawa: CCPA (2006).

Kessler, Glenn. ‘Why Is The National Debt $16 Trillion?’. The Washington Post 2013: 1. Web. 11 July 2015.

Lyon, Hastings. Principles of Taxation. S.l.: General Books, 2010. Print.