To what extent does cutting taxes for the rich improve the economy?
Two things in life are certain; death and taxes. A former United States president Benjamin Franklin is credited with this statement. However true, while taxes are assumed to be a part of reality for most Americans, taxes are far from consistent. In fact, America was tax-free for much of its early history (Weisman). The first personal income tax was imposed by the United States federal government in 1861 to help pay for its war effort in the American Civil War (Weisman). Congress then passed the Internal Revenue Act in 1862 creating the Bureau of Internal Revenue, which became today’s Internal Revenue Service (Weisman).
A tax is a monetary charge…show more content… The republicans, who traditionally have a conservative view and the democrats, who have a more liberal view is one well-known separation of peoples due to a difference of opinion (Semuels). So, when asked if cutting taxes for the rich will improve the economy republicans say one thing while the democrats say another. Republicans think that cutting taxes on the rich will improve the economy while the Democrats believe that cutting taxes for the rich will damage economy. The republicans believe, “The economic plan under Trump will grow the economy and will create massive amounts of revenues, trillions of dollars in addition revenues” (Mnuchin). They also think that the plan would spur the economy and grow 3% annually (Mnuchin). At the same time, the democrats are worried that Trump’s ideas will allow companies to create pass-through and avoid paying tax obligations (Davis). To that point, Republicans counter with saying regulations and rules will be set in place so that the wealthy are not exempt from paying a fair share of taxes (Mnuchin). In sum, Democrats are generally not opposed to raising taxes to fund government. Conversely, Republicans tend to favor the same tax rate regardless of income and generally opposed to raising
