Tax Reform: Two Sides of the Same Coin

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Tax Reform: Two Sides of the Same Coin
Tax season is upon us and many Americans are scrambling around trying to get theirs finished by the end of the dead line. This time of year is not a joyous occasion, everyone on edge most of them pondering how much they will have to pay. While others are wondering if they will get as much as they thought they will, or are they going to be one of the unlucky few to be audited? I am one of those people, anxious, and waiting at the edge of my seat for that hammer of reality to come crashing down over my head. With each new election year comes new arguments and battles fought within the halls of Capital Hill, but who is right and is there a middle ground? I will present you with the facts as I have found them; the choice is yours to determine what is right and what is wrong.
In 2012 Republican Presidential candidate Mitt Romney and his Vice-President candidate Paul Ryan introduced their idea for the future of the tax system; they called it the “Trickle-Down Effect”. The definition of “Trickle-Down” is ”an economic idea which states that decreasing marginal and capital gains tax rates – especially for corporations, investors and entrepreneurs- can stimulate production in the overall economy. According to trickle-down theory proponents, this stimulus leads to economic growth and creation that benefits everyone, not just those who pay lower tax rates”(“investopedia”). Essentially, keeping the Bush Era tax breaks in place and even broadening them in certain aspects, to promote growth throughout the business sector. They believed that by lowering taxes all across the board it would give companies an incentive to hire new employees and create new jobs. This sounds like a fairly good idea, give empl...

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... two or four years but the rules remand the same, no matter what side you stand on. So, with my stress level to the max I will file my taxes, and anxiously wait for that hammer to come crashing down over my head. Republicans and Democrats alike have good and bad ideas to spare finding the right mix of good ideas is the tricky part, so in tell both sides can play nice we as a nation will continue to sit in the middle waiting for our leaders to grow up.

Works Cited

“Trickle-Down Theory.” www.investopedia.com
Web. 3 April 2014.

Muir, David. “Romney’s Taxes.” World News with Diane Sawyer (2012): Regional Business
News. Web. 3 April 2014.

Plesko, George A., Toder, Eric J. “Changes in the Organization of Business Activity and Implications for Tax Reform.” National Tax Journal 66.4 855-870 Web.

The White House. The White House. TWH,
2014. Web. 8 April 2014.

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