Essays on Tax Cut

1-How Was The Economy When Obama Took Office? (Unemployment Rate, Inflation, and GDP)

When Obama took office, the economy of the United States of America was in a great depression, which had not been experienced since the Great Depression of the 1930s. The economy was in a bad shape, and each sector was being faced with various problems. The levels of unemployment had gone up, and the Obamas’ administration was afraid that if they did nothing then, the problem would be much bigger than they thought. The unemployment rates had escalated to levels of even 9%. The situation was worse because the levels of inflation in the economy had risen. The mortgage ...

1. Austerity is the reduction in the deficit financing through reducing the public services that are provide to the citizens. The reduced government spending through provision of less public goods help to avoid deficit financing (Joshua, 2). On the other hand, economic growth is the increase in the total output in the economy. It is argued that austerity policies hinder economic growth since reduced deficit financing lead to less employment hence output in the economy reduces. Another policy that Obama administration has put in place to facilitate austerity is to reduce government spending in some sectors of the economy ...

Question 1. Explain the two theories of aggregate supply. On what market imperfection does each theory rely? What do the theories have in common?

Answer:

Sticky-price theory: price for the goods on the market do not change immediately to different occasions that might influence this changes. The goods on the market can’t be out bought instantly. Some firms respond to this by reducing the number of products, instead of price reduction. They do that, because they want to evade profit loss. Imperfect information theory: this theory purpose is to model the relationship between changes in the money supply, ...

Article Review

Article 1 Published on: October 22, 2014

The Summary The tax cut policy followed by Kansas has led to a shortfall in the revenue this year. The tax revenue collected in the fiscal year 2014 was $700 million less than that of the previous year. According to the director of taxation Steve Slotts, this revenue shortfall is temporary in nature. This temporary deficit is being met through the expenditures from the reserve fund. But the revenue shortfall in the first three months of the fiscal year 2015 that began in July 2014, suggests that this shortfall is permanent. ...

Chapter 10:

Question1. As government expenditure increases, the income increases. This increase in income leads to a rise in consumption expenditure. A 1 unit rise in income leads to a rise in consumption by the marginal propensity to consume. As consumption expenditure increases, this induces further increase in output in the economy. So income increases. The increase in government expenditure creates a multiplier effect. This multiplier depends on the marginal propensity to consume (MPC). Higher the MPC higher is the multiplier effect.

The money market is at equilibrium when the demand for money equals the supply of money. The demand for money has ...

- Housing costs me nothing. This statement is not correct from the microeconomic point of view. There is always an opportunity cost, which is always born by the person who asks the question. Sale of the house or rent of the flat while moving into a cheaper housing would provide quantification of such cost when compared to actual level of income. Also, there are maintenance costs and tax related costs. - Boring lessons. The financial cost of the lessons was already covered, from the microeconomic point of view, if the lessons are useless, participation will only increase ...

Introduction

Tax inversion is the art of merging a US based company with a foreign company in order to reduce on the amount of tax that a company is liable to. Tax inversion can also be said to be the process by which a parent company in US merge with another company from low-tax economy in order to benefit from this low tax regime. The main aim of tax inversion is to reduce on the amount that the US Company pays to the government. Corporates within the US pay up to thirty-five percent of their total profits as tax wages to the government, therefore, ...

Course:

Introduction Governments in the world today loose much revenue through tax evasion and tax avoidance practise by individuals and business enterprises (Innes 2005). The paper shall discuss the difference between tax evasion and tax avoidance using recent relevant examples and give their implications. The paper shall also evaluate the how the taxation policies result to distribution of income in UK and the failure involved. The paper shall also examine the influence of international laws and EU policies on UK taxation policies.

Differences between tax avoidance and tax evasion

The term tax evasion refers to use of illegal mean to avoid paying taxes. Tax evasion comprises ...

Fiscal policy is an intervention in which the government uses its spending and taxes to influence economic activities in desired ways. It is concerned with the allotment of resources between the private and the public sectors with the aim of attaining the desirable level of growth and stability. The national government plays a vital role in regulating activities in the economy through the use of fiscal and monetary policies to influence various economic indicators such as inflation, investments and savings. Discretionary fiscal policy pursues the Keynesian hypothesis where the central government manipulates demand to influence price levels, output and ...

Bush tax cut (2002)

Introduction

Fiscal policy is a macro economy tool that is used by the government or national administration to stabilize the economy of a country. Therefore, Fiscal Policy Actions are measures that the government employs in stabilizing the economy of a country, particularly through adjusting allocations and levels of government expenditures and taxes. There exist contractionary and expansionary Fiscal policies legislations and are applied depending on the state that an economy is in. There are various types of Fiscal policy actions and Bush tax cuts (2002) are one of them. Tax cuts are actually a quick and easy way to ...

ABSTRACT 3

INTRODUCTION Background 4 Information Sources 4 Limitations 4 ANALYSIS Presidential Election and the Economy 5 CONCLUSION Summary and Interpretation of Findings 12

REFERENCES 13

Abstract This paper presents an analysis of the article entitled The Growth Recession of 2012 and the Presidential Election published by Forbes.com in October 2012. The purpose of the paper is to present a recently published article and provide an analysis in light of the principles and theories of economics. The discussion involves the analysis of a recent article by relating it to the theories and principles of Economics specifically ...

Fiscal Cliff basically refers to the economic effects that are likely to arise from the tax increases, reduction in the budget deficit, and underlying spending cuts when the Budget Control Act of 2011 goes into effect at the end of 2012. The changes expected include a 2% tax increase for workers as a result of the stop of the temporary payroll tax cuts, the stop of some tax breaks for businesses, and the beginning of Obama’s health care law taxes, among others. In addition, the spending cuts shall become effective. The main reasons why the tax rates shall rise include ...

I am interested in writing about economic growth. This topic is so timely because the economy of US was reported to grow in the third quarter of this year. The growth in the economy was due to increases in inventories and export, thereby raising the gross domestic product to 2.7% during the third quarter. Economic growth is a very important indicator of the economy as it signifies increase in the productive capacity of the country over time that leads to increases in national output and income. It is the increase in the total output of a country over time and ...

The most recent event in the country that I can think of is the 2012 Presidential Election. What has this to do with the economy?

The most obvious connection between a presidential election and economic activity is that, if the incumbent government is eyeing for a reelection, then pre-election programs include execution of expansionary fiscal policy since such policy (either increase in spending or a tax cut) tend to increase economic growth, reduces unemployment and increases the political support for the politician. I learned that fiscal policy pertains to discretionary changes in government spending and tax collection with the goal of ...

Issue: For the economic development and well-being of the Americans, should tax reform that focuses on tax cut be introduced by the Obama administration?

Thesis: Understanding tax reforms in the USA is of great benefit as it helps re-organize the country's economic reform policy. This can however only be achieved via the accomplishment of sound tax reforms. Comprehensive understanding of a country's tax reform strategies determines the prosperity of country's economy. The USA government should thus undertake rigorous tax reform as it is essential for tax policy making and the general economic development.

Tax reform has been of interest for ...

Issue: For the economic development and well being of the Americans, should tax reform that focuses on tax cut be introduced by the Obama administration? Thesis Assertation: Understanding tax reforms in the USA is of great benefit as it helps re-organize the country’s economic reform policy. This can however only be achieved via the accomplishment of sound tax reforms. Comprehensive understanding of a country’s tax reform strategies determines the prosperity of country’s economy. The USA government should thus undertake rigorous tax reform as it is essential for tax policy making and the general economic development.

Tax ...

The launching of the American Jobs Act presents the majority of unemployed Americans with hope of employment opportunities. Currently, a good number of Americans are unemployed. The Act is directed to the small businesses and provides categorical outlines for firms to engage in hiring, investments and business expansion. As opposed to the current tax code which is perceived as being legalese-ridden, complex, mystifying, ambiguous and demoralizing, American Jobs Act comes with added advantage as per reasonable tax regulations are concerned.

Employment opportunities

With the tax cut, small businesses will be able to invest more and thus earn more returns which can be ...

Analyze Opposing Sides Writing Assignment 3

As I earlier stated regarding the September 9th article regarding president Obama’s $450 job plan, it is a worthwhile venture for the nation as a whole. I totally agree with the president on his call to the congress to avoid the political circus at such a pressing time for the country. I agree that the proposal will go a long way in cutting on payroll taxes and feting any company that endeavors to hire new employees. At the same time, the proposal will see to it that the expenditure on public works such as roads will be boosted by up to $105 ...

Options for an Organization

Even as the 2012 elections draw near, president Obama has been struggling to convince Congress to rally behind him and ensure that the Americans Jobs Act is adopted. All this is for the sake of reconstructing the US economy that has been performing poorly. The sole objective of the Act is to put more Americans back to jobs thus ensuring more money in the pockets of the working population. For the interest of the above Act and the plea from the president to both the Democrats and the Republicans, this paper seeks to find out the genuineness of the ...