Tax Reform Essay - 1578 Words

The United States is in a recession; it has been facing some of the worse economic times since the Great Depression in the 1930’s. One option to fix the economy is to change the corporate tax rate. To lower it or to raise it, that is the question economists have been speculating. Americas high corporate tax rate and worldwide system of taxation discourages U.S. companies from sending their foreign-source revenue home, which makes U.S. companies defenseless to foreign acquisition from the international opponents (Camp). Corporations and United States citizens have been fighting for a tax reform, which would hopefully help the American economy; either by lowering the corporate tax, or by raising the tax. The United States corporate tax†¦show more content†¦A tax haven is a country that offers foreign corporations and individuals relatively low corporate and income tax rates, with a politically and economically stable environment. Some tax havens are Switzerland, Hong Kong, Bermuda, Ireland, and the Cayman Islands. Although the businesses have moved across seas, the United States forces them to pay the corporate tax. Fortunately for the businesses, it they keep their income and money across seas they do not have to the pay the American corporate tax, Unfortunately this is ghastly for the United States Government businesses keep their products and profits over seas. One proposal for the lowering of taxes in the United States is Herman Cain’s 999 Plan. Herman Cain is a republican politician running for president in the year 2012. The 999 Plan is a tax reform plan that would change personal income tax, national sales tax, and corporate sales tax all to nine percent. (Astor) The argument for the plan is that it would strengthen the economy and create jobs because it would lower taxes by 26 percent on businesses, therefore giving them incentive to start hiring, therefore creating new jobs for Americans. Currently the United States Unemployment rate is at 9.1 percent. Also corporations would be more willing to bring their profits home due to the lowerShow MoreRelatedTax Reform Essay1100 Words   |  5 PagesWhen it comes to the new tax reform framework, while it might help some Americans, it also can hurt the rest of the people who does not fall into one of the tax brackets. However, if the plan is done accurately and it is designed to help a ll of America, not just the wealthy, then they can get it done. Also, it should be called a tax cut and not a reform. Honestly, the question everyone needs to ask is which income level is really going to benefit from the new framework. Which individual or marriedRead MoreAustralian Tax Reform1492 Words   |  6 PagesDebt, Death Taxes 16th October 2002 Robert Camilleri The Conservative government doctrine is essentially defined as the party of tax relief. But now conservatives have converted themselves into the party of debt retirement. 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The concept†­ †¬of†­ †¬Ã¢â‚¬Å"GST†­Ã¢â‚¬ Ã¢â‚¬ ¬ or†­ â€Å"†¬One Nation,†­ †¬OneRead MoreTax Reform Essay856 Words   |  4 Pageswith zero income tax. Abraham Lincoln interrupted that in 1862 to finance the Union Army. But its success was short lived when an 1872 Supreme Court decision repealed federal income tax as unconstitutional. We made it all the way to 1913 before it miraculously clawed its way out of the grave (see movie The Revenant) where federal income taxes became law. Congress ratified the constitution to pull it off. From then on nothing changed until Ronald Reagans monumental 1986 Tax Reform Act. But asRead MoreEssay On Tax Reform1276 Words   |  6 Pagesindividuals, the current US tax system in place may seem to have always been such. However, many would be astonished to find out that the tax system has changed drastically in just the past few decades. The current US tax system, is personally, unfair as it currently exists. However, while there are major pervasive faults in current policy, the basis of it as a progressive tax still warrants support. With the changes put forth in this paper it is the hope that the resulting tax policy will provide an