Donald Trump’s tax plan is an attractive proposal that would appeal to average middle class Americans as well business owners of all sizes. Offering a simpler tax plan that will benefit the average middle class American while still driving the economy. The plan also suits to business owners by offering a reasonable tax rate for their business income tax. Although all that sounds good it could be a major downfall in the long haul, this problem deals with what economists refer to as “infinite demand”. Trump’s plan is claiming to be able to offer “tax relief for middle class Americans”. He is achieving this by allowing those who are single and make less than $25,000 or who are married and make less than $50,000 jointly to be exempt from any income
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The press on increasing the figure of individuals who will not pay any taxes. The plan stands that it will annihilate the income tax for 72 million homes, this could be a bad thing. The explanation of explosive government spending is the adoption of “progressive tax rates” to readjust wealth. This is due to the progressive income tax allowing large amounts of voters to not pay taxes. In 2011, the Joint Committee on Taxation publically shared that fifty one percent of households aren’t paying federal taxes. This can also be confirmed by the IRS. This is bad because of demand. When large groups of people are granted no tax pays the electorates that run will always order a constant increase in government services because it’s in their favor. If government benefits become free their demand will see no end. Then it becomes an ongoing cycle, where voters will vote for politician that promise to raise government spending. To defeat the “infinite demand” for government spending, the amount of non-payers will need to drop. A straightforward equal rate tax that does not favor anyone higher than the poverty level is needed. Voters will soon lose interest in their government subsidies programs because they would have to pay for them. Soon favoring those politicians who yell out “reduction” at every corner because it’s another path they can take to reduce their taxes and keep more money in their
The press on increasing the figure of individuals who will not pay any taxes. The plan stands that it will annihilate the income tax for 72 million homes, this could be a bad thing. The explanation of explosive government spending is the adoption of “progressive tax rates” to readjust wealth. This is due to the progressive income tax allowing large amounts of voters to not pay taxes. In 2011, the Joint Committee on Taxation publically shared that fifty one percent of households aren’t paying federal taxes. This can also be confirmed by the IRS. This is bad because of demand. When large groups of people are granted no tax pays the electorates that run will always order a constant increase in government services because it’s in their favor. If government benefits become free their demand will see no end. Then it becomes an ongoing cycle, where voters will vote for politician that promise to raise government spending. To defeat the “infinite demand” for government spending, the amount of non-payers will need to drop. A straightforward equal rate tax that does not favor anyone higher than the poverty level is needed. Voters will soon lose interest in their government subsidies programs because they would have to pay for them. Soon favoring those politicians who yell out “reduction” at every corner because it’s another path they can take to reduce their taxes and keep more money in their