Tax Reform Analysis

The United States of America is in an exigent need of tax reforms. Peter G. Peterson, in Steering Clear, blazoned forth a myriad of tax reform mechanisms that can conceivably boost the economy and prove to be a catalyst for future economic growth, which include soaking the rich by taxing them heavily, reforming the corporate tax code and implementing a carbon tax, amongst many others. Although all of Peterson’s tax reforms are well-substantiated, the one that aligns the most with his targets of inducing economic growth, reducing income disparities and solving the perils of the debt crisis is the corporate tax code reform. Not only does Peterson’s evidence provide concrete reasons that advocate why the reform is imperative, but the possible benefits of the reform also establish its status as an indispensable constituent for America’s sustainable economic growth. …show more content…
However, Peterson argues otherwise. He proposes, with support from the likes of Warren Buffet and Paul Volcker, an income tax rate of 30% on the wealthy. According to Peterson, such tax hikes on the opulent proportion of the population have previously been implemented during the administrations of Bill Clinton and George H. W. Bush in the 1990s, which led to a fiscal upsurge by causing budget surpluses for four years. He further proclaims that because many people on Wall Street concur with his policy of raising taxes to generate revenue, a tax uplift will not debilitate the economy, but rather will demonstrate the wealthy effusively committing to solving America’s debt crisis (Peterson 2015,