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Federal spending essay
Federal spending in united states essay
Federal spending essay
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The federal and state governments provide the American citizens with all of the basic necessities within our communities and society that is taken for granted. Programs responsible for assistance in times of need, providing a quality standard of living, and maintaining the strongest military in the world costs incomprehensible amounts of money and could never exist without taxes from the American people. Taxes are payments made by individuals and businesses to support the government and its services. The constitution grants that congress “shall have the power to lay and collect taxes, duties, imposts, and excises and to pay the debts and provide for the common defense and general welfare of the people”. Taxes paid by Americans redistribute wealth towards their central governments to go towards creating and maintaining everything that makes the U.S. a leading industrialized nation.
Federal tax laws are run by Internal Revenue Service (IRS) which is an agency under the U.S. Treasury Department. The federal government makes $2 trillion in revenue each year through taxes and borrowing. Money is borrowed by selling federal securities, which include bonds, notes, and certificates. Savings bonds are the most popular, for that investors are able to receive interest on the money they lend to the government. There are many different kinds of taxes administered by the government which tax individuals, companies, programs, luxuries, and international goods. Individual income tax makes up for over half of the government’s income each year, in which the government takes a portion of the citizen’s income based on how much money they earn. This type of tax is a progressive tax which means it’s based on the person’s ability to pay, being that wea...
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...n more government spending and thus more taxes than the previous plan. Furthermore, a national sales tax would vastly encourage spending outside the U.S. since Americans would be able to buy cheaper goods overseas causing less consumption within the U.S. markets. All of this results in less spending and could easily result in the collapse of the U.S. dollar. Nonetheless over time it may encourage Americans to save more money, and ultimately have more money. Ultimately it would be opposed by the majority of Americans, whom fall below the middle class level. In theory the concept seems like it could effectively work, but when the smallest percentage of the richest Americans support almost half of the government while still remaining in the top percentile, the income tax least affects the average American and still encourages them to spend and support the U.S. markets.
Eric Foner claims the definition of Federalism refers to the relationship between the national government and the states. Unlike the Constitution, the Articles of Confederation came with many weaknesses. Some provided by our powerpoint include that the Federal government had no power to make the states obey the Articles and laws that were passed by the legislature. The states also had the power to tax, and the opportunity to print their own money. Our powerpoint focuses on the $10 million Congress owed to other countries, as well as the $40 million it owed to the American veterans. The Constitution differed. Foner states that not only did the Constitution enhance national authority, but it also permitted Congress to levy taxes, conduct commerce, confirm war, deal with the foreign nations and Indians, and rent and help the “general welfare”. According to the powerpoint, Federalists focused on the weaknesses of the Articles of Confederation.
The power to tax is key to a successful government. If a government is to act it needs the means to do so. The Articles withheld the power of taxation from Congress and gave it to the local governments. Congress could only appeal to the states for money. Unsurprisingly, the states did not respond with any of the requested money. This was a serious problem because the U.S. was in an incredible amount of debt as a result of the Revolutionary War. If money cannot be collected, how are debts to be paid? Some in Congress believed the problem could be solved by printing more money. However, this strategy only led to inflation, which weakened the economy furthe...
Imagine living in a country where no citizen has a say in the government’s actions. Envision a nation where the ruler can tax people without permission and the common people are forced to obey without question. That was life in The Colonies before the year of 1776, when the Declaration of Independence was created. Great Britain passed laws whether it benefited the people or not. Before the Declaration of Independence was composed, a plethora of unnecessary taxes were approved. These taxes sent many colonists into debt. According to “The Declaration of Independence, 1776,” published on Office of the Historian, a famous tax called the Stamp Act was passed by Parliament. This tax forced colonists to purchase stamps for every paper product
The United States government is based around our Constitution. One of the most important pieces to U.S. Constitution is what lies in Article. I. Section. 8. Here is a list of powers granted to congress through the Constitution, known as the Enumerated Powers or Granted Powers, stating what congress can enforce on the nation as a whole. Examples of these powers include, the ability to lay and collect taxes, to pay debts, provide common defense/ declare war, provide for the general welfare, and the power to regulate commerce. Valuable topics to understand when reviewing the Enumerated Powers that are granted to the United States Congress are how federalism and Federalists are tied into congress 's constitutional powers and the meaning and
While this would normally pose a problem to the federal budget, it will not due to current conditions. The amount of money formerly spent on national security, meaning military and defense spending has been severely reduced (Albertson, 139). This frees up a large amount of money to be used for other goals. These goals should be those of improving the standard of living for each and every American and not the immediate reduction of taxes, a goal which many members of the Republican party would like to see pursued. The programs initiated under the policies of the New Deal and Fair Deal should not simply be maintained, instead they should be expanded upon.
Our current system of taxation is a varied rate percentage based on different income brackets. Many say that it violates our constitutional rights through unequal taxation. Multiple deductions, loopholes, special rates, and a complex system of regulations all characterize our Federal Income Tax System, prompting many to question why it is still being used (Peters, 2013). The current system although bringing in over $3 trillion, taxes income multiple times, and includes the taxing of estate, labor, savings, and investments (National Priorities Project, 2013). The system itself is complex with over 20,000 pages of regulations, requiring a massive filing system, which is set up and maintained by an even larger IRS, requiring over $225 billion in compliance costs (Hall, 2001). One can be hard pressed to find an advantage in the current system, other than the fact that it provides the government with an enormous amount of funds, and it has...
To understand this compromise, there needs to be a basic understanding of the United States current tax code, more specifically in this situation the federal income tax code. The income tax makes up 46 percent of the federal governments three trillion dollar internal revenue, that is 1.38 trillion dollars (.N.p.).
We often wonder about the importance of government. Is it necessary? Does it really benefit society? The answer is yes. Many countries have diverse forms of government such as totalitarian, monarchy, theocracy, and much more. The United States of America specifically runs a democratic type of government. A democratic government gives power to the people. Citizens over the age of eighteen are allowed to elect leaders based on their individual opinions through voting rights. The main purpose of the American government is, to protect people’s inalienable rights to life, liberty, property, and the pursuit of happiness as our Founding Fathers intended.
Many ponder the idea of federal taxes and whether the wealthy deserve to pay a higher percentage rate of their overall income. That is, they argue that because our society needs more equality and a lower national budget deficit, taxes on the rich must be raised. This specific topic has been discussed for decades, and due to the severely different perspectives, it is unclear whether the two sides will ever come to an agreement. President Barack Obama and much of the Democratic Party strongly lean towards raising taxes on the rich, while the conservatives and the Republican Party heavily lean towards a more balanced flat tax. However, after extensive research and focus on what would be best for the equality of individuals, the nation and its economy, this paper will firmly prove that the top one percent should not be taxed any more than they are today.
Introduction: In the year 1862 during the civil war congress implemented the first income tax in America. It was 3% per year. However, it was not until 1913 when the 16th Amendment to the Constitution was passed, which granted the government the ability to impose a tax on individuals’ income. Since then it has been an issue to determine how much people should be taxed. Tax rates in America change drastically; for example, in 1963 a person in the highest tax bracket would give 90.8% of their income to the government. In contrast, that same person would only pay 28.0% in 1988. The tax rate for income tax is an issue because for every dime that someone pays in taxes is one dime that they are not able to spend themselves. Additionally, people
The U.S government works under princible called federalisim. Citizens regualte by two separate governments, federal and state. The federal government has limited power over all fifty states. State has power over their state, and no state can not make laws that conflict with federal laws. Federalisim is a system that allows two or more governments to share control over the same geographic region. The power is divided. The difference between federal and state governments power, the powers granted to the U.S. government are to collect taxes, pay debts, provide for the common defense and welfare of the U.S. The Federal Government can even boworrow money, regualte commerce within forgien nations and states. The power of the federal government
One of the clauses that helped the government was the Taxing and Spending Clause, located in Article I, Section 8. The clause allows the federal government to tax citizens of the United States. Under the Articles of Confederation, the government had no power to lay and collect taxes, and had to rely on the demands of the governments of the states. Seeing that Congress had no power to independently raise its revenues, they proposed the Taxing and Spending Clause. Even if the government had the power tax citizens, they did not use it to only raise revenue, but they also taxed to regulate the commerce, taxed to discourage or suppress the commerce, or set tariffs to protect domestic markets from foreign control. On the case of United States v. Butler, the Supreme Court ruled that Congress did not have the power to impose tax due to the Agricultural Adjustment Act and deemed it unconstitutional because it attempted to regulate state activity, thus violating the Tenth Amendment. Regardless of its ruling, the case declared that the government did, in fact, have a wider power to tax, but there were limitations. In another court case, South Dakota v. Dole, the Supreme Court declared that it was constitutional due to the fact that the states' highway funds were withheld if they did not raise their legal drinking age to 21 years old. This would bring more power to the federal government due to forc...
Thirdly I noticed that government effects how much money is deducted out of the paycheck I receive at work. The government deducts money for many different programs. One of those is the social security program. The social security program is made up of money deducted from everyone's pay this money is distributed when the employee becomes disabled, retires, or passes away. The money is there to protect the worker and their families if that person is no longer able to work. The government also takes money out of my pay for Medicare, Medicare is a program that provides medical care for people that can not afford it. There is also a federal income tax that is deducted and used for a various assortment of programs from road paving to bridge building and many other public needs.
Taxation has always been a major controversy. Just like any major corporation, the government is constantly looking to raise revenue. The easiest and fairest way to do this is by taxing the people. However, how the people will be taxed is always an issue.
The use of taxes is one of the government's favorite ways to make its presence known in the economy. While this method seems blatantly obvious, many of the ways the government uses the money collected by taxation is not. Some of the money it takes is used to fund other programs designed to "protect" consumers and to "create" jobs. Be...