Should taxes on people making over $250,000 a year be changed? essay
In actuality, fiscal changes are debatable issues since, on the one hand, the rise of taxes is essential to cover growing needs of the federal budget, while, on the other hand, there is the traditional policy of non-interference of the US government into the US economy. In this regard, the possible rise of taxes for the rich is particularly sensitive issue because the majority of the population supports such measure, but economic effects of such decision may be questionable, while the political opposition to such decision will be certain from the part of the Republicans, who traditionally stood on the economically liberal ground. The taxes on people making over $250,000 a year should be changed because the current taxation is unfair as the rich can afford paying higher taxes to support the poor, while the government can serve as the mediator between the rich and the poor.
History and status of the issue
The rise of taxes for the rich is quite a controversial issue, especially in the context of the US economy, which has always had a strong inclination to liberal policies with the minimal interference of the government into the national economy. In this regard, the Republican government was traditionally oriented on the liberation of fiscal policies with the minimal fiscal pressure, cut of government expenses, and free open market development. In contrast, the Democrats tended to the wider government interference and regulations to close the gap between the rich and the poor. Today, the Obama administration is considered to be the socialist administration because of its government policies that means that the current administration is favorable for the rise of taxes for the rich, including those, who earn over $250,000.
The economic problem
The main economic problem that actually stimulates the introduction of the rise of taxes for the rich is the problem of the stumbling US economy and the low economic growth of the US. The deterioration of the economic situation in the US has triggered the pauperization of a large part of the US population along with the shift of a considerable part of the middle-class toward the lower-class, while the upper-class earning over $250,000. The deterioration of the economic situation and pauperization of the population raises the problem of the further decline of the economic growth of the US because of the low consumption and focus of Americans on saving instead of spending. In such a situation, the government focuses on the enhancement of business activities, which can be achieved through the enhancement of the buying power of the majority of the population. In this regard, the increasing taxes for the rich open the way to decrease the fiscal pressure on the middle-class that prevents the further pauperization of the middle–class. Instead, the rich will not suffer substantial financial losses, because of their high level of income. As a result, the raise of taxes for the rich will help to resolve the problem of the economic decline of the US and boost the recovery of the US economy.
The political problem
The political problem that emerges along with the rise of taxes for the rich is the problem of the government economic policy and over-regulation of the US economy. In fact, the historical development of the US was accompanied by the free economic development, while the government focused on other issues, but not economic issues. In such a way, the government regulation always evoked a strong opposition in the US politics as well as in the US society because such regulations were perceived as the excessive interference of the state into the economy of the US and private matters of individuals. The US was historically the country, where the government was not supposed to set the tight control over the economy by means of fiscal policies. In such a situation, the rise of taxes for the poor will evoke the severe criticism, especially from the part of the Republican Party. However, the rise of taxes will be an essential political decision to show that the government takes care for the average people, especially after 2008-2009 bailouts, when the government’s policy was perceived as the support of large corporations at costs of the average tax payers.
The social problem
Furthermore, the raise of taxes is closely intertwined with the burning social problem, the problem of the growing disparity within the US society. To put it more precisely, the economic recession of 2008 has triggered the considerable widening of gaps between the rich and the poor in the US. In fact, the rise of the social disparity was the result of substantial gap in the level of income of the rich and the poor. As a result, the growing social and economic disparity raises the problem of the growing tension between the rich and the poor. If the government keeps ignoring the problem, there is a high risk of the large scale social conflict. In this regard, the Occupy Wall Street Movement and similar movements may be viewed as mere precursors of the large scale social protest against the persisting injustice in the US that may trigger clashes between civilians and law enforcement agencies as well as the military. In a long-run perspective, the government will face considerable problems with the maintenance of the existing social order because of the growing social protest and elimination of existing social injustice.
Conclusion
Thus, the raise of taxes for those, who earn over $250,000 is an essential step to resolve current economic, political and social problems of the US. Even though this decision is difficult to take and this decision is likely to evoke a strong opposition in the US, but this decision is essential to undertake because it helps to bridge gaps between the rich and the poor and help the US middle-class to remain the middle- but not lower-class.
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