Description
Decisions related to taxes have a far-reaching impact on all U.S. citizens. Therefore, it is important to weigh the pros and cons of such decisions and ensure that they will be beneficial to the majority of citizens.
- When the government considers enacting a new tax, what issues need to be considered to ensure that the tax will be fair to all taxpayers? Give reasons and examples to support your answer.
- Consider the idea of replacing the federal income tax with a national sales tax or value-added tax. Do you think this would make the system more fair or less fair? Give reasons and examples to support your answer.
Write your initial response in one to two paragraphs.
Remember to use APA format when citing your references.
Explanation & Answer
Attached.
Enacting Taxes
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Enacting Taxes
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June 2018
Enacting Taxes
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Enacting Taxes
Actions to Consider
The government enacts taxes with the intention of increasing revenues in order to provide basic
social amenities to the tax payer through a fair distribution. The period between developing a tax
law and its provisions is considered a short period and thus tax laws may be developed only with
a few considerations in mind. However, certain considerations cannot be overlooked by the
government. These issues that need to be taken into consideration by the government include the
tax payers’ ability to pay the tax and the benefits the government is likely to distribute from the
taxation paid by the taxpayer. For instance, when the Government decides to make adjustments
about the equity of its policy, it is essential to consider how individuals are taxed and the way the
government distributes public wealth. To create a fair tax, the governme...
