Bloomberg View title Tax cut or tax increase: What’s really going on?
article The debate over what a tax break is and what it can accomplish is heating up again.
The issue is a complicated one that has split both political parties, with Democrats and Republicans in the Senate and House all arguing over how much a tax hike is really worth.
And it has been a hot-button issue in the U.S. since President Donald Trump, a Republican, signed an executive order to eliminate the income tax rate.
But while Trump’s tax proposal was met with protests, Democrats and many Republicans argued that the move was too big a giveaway to wealthy Americans and would make it harder for middle-class Americans to afford their basic necessities.
Here are five reasons why a tax overhaul would make the country better off.1.
It would spur growth and employment:In a new book called “Taxes for All,” economists at the University of Massachusetts Amherst’s Center for Economic and Policy Research argue that tax cuts would boost growth and job creation.
Their research suggests that tax increases on the wealthy would boost GDP by $1.4 trillion over a decade, with the average household in the top one-tenth of 1 percent of earners seeing their annual income increase by roughly $1,000.
That could help offset the impact of a reduction in tax rates for everyone else.
It also could spur businesses to invest and hire, as well as spur more tax revenue to pay for public services.2.
It will help the middle class:Economists say a tax reduction for the middle classes would help the vast majority of Americans, including people who make less than $80,000 per year.
That’s because the middle-income people would pay a larger share of their income in taxes than the top 1 percent, according to a recent study by the Tax Policy Center.
It could also be a net economic benefit to the country because the tax cuts on the middle would likely help more people get ahead.3.
It’s better for small businesses:Small businesses have been particularly hard hit by tax cuts, with many reporting losses of more than $3 billion in 2019.
The new Tax Cuts and Jobs Act could help small businesses by boosting their profits, but it also could make them more competitive with larger companies.4.
It’ll spur economic growth:A tax cut would also help the economy by providing the boost in investment that is needed to grow the economy, according the Tax Foundation.
This would increase the size of the U:I.T. economy and stimulate the economy and jobs.
It is also a win-win for taxpayers.5.
It’d be fairer:A better deal for workers and businesses would boost productivity and reduce taxes.
That would encourage companies to invest in their employees, boosting wages and wages-producing businesses.