Taxation Benefiting All

Colleen DuBoisApril 25, 2013

Public Economics

What’s Important About our Taxes? Where our taxes come from

US Workers No Equal Distribution

Effects on the US Middle Class Main part of having a democracy Lose the “American Dream” Decreases Morale Suffering Economy

Current Tax System Income Taxes Payroll Taxes

81% Sales and Excise Taxes Property Taxes Estate and Gift Taxes License and Occupational

Taxes Corporate Income Taxes

Middle Class Squeeze Increased number of High-Paying, High-

Skilled jobs Increased number of Low-Paying, Low-Skilled

jobs Lack of Middle-Skilled, Middle-Wage jobs

“A Broad and A Strong middle class is key for a stable

democracy”

Literature ReviewAmerica The Fallen

Detroit Before The Highest Per Capita Income in the US One of the Most Prosperous Cities in the WORLD“The rise of the most vibrant middle class in the history of the planet”

Today People visit and take tours of the ruins 70,000 abandoned buildings ~1/3 of their 140 square miles is vacant or derelict“Our once proud cities are being transformed into poverty-stricken Hellholes”

Literature ReviewTrickle-Down Taxation

Burden on the small business owners Pay on behalf of the firm Hurts employee salaries So important because they create the new jobs

When targeting the rich these guys get hit hard Creates a bigger gap between the rich and the

poor Economic expansions will be discouraged

Literature ReviewGlobal Dividend Hunters

Taxes on Dividends in Canada work wonders Tax national and international traders Benefits the Economy!

Investment and Earnings 79% of income tax

Does this system work

Its working, Sufficient But it has flaws, Room for Improvement Needs to become more fair Middle Class Friendly

Solutions/Improvements

Control the entitlements Don’t discourage the Lower Class from

workingBenefits

Improve and Encourage middle classDecrease in Unemployment

RisksStruggling working class

Solutions Cont. Manage the exemptions

Upper Class does not need any more breaks

Keep the exemptions beneficial Upper Class has Political Power BenefitsMore fair tax systemIncentive to file taxesRisks

Complaints Power of the upper class

Solutions Cont. Create a new tax system

Add a Dividend tax Mainly just a tax on interestBenefits

Targets the upper classHopefully increase more educated tradingHuge over the long run

RisksTraders will avoid the stocks with taxTraders will go to different countries

Overall Goal More Control of Taxes

Strengthen and maintain our middle class Motivate Workers Keep the taxation as fair as possible

“Ruins don’t make you think of the past,

they direct you toward the future.”

Sources http://economyincrisis.org/content/tackling-americas-tax-problem

http://articles.chicagotribune.com/2013-02-14/business/sns-rt-us-column-freelandbre91d1a9-20130214_1_middle-class-middle-skill-middle-wage/2

http://en.wikipedia.org/wiki/Taxation_in_the_United_States#Sales_and_excise_taxes

http://www.washingtonpost.com/blogs/wonkblog/wp/2013/04/04/u-s-tax-code-isnt-as-progressive-as-you-think/

http://www.washingtonpost.com/blogs/wonkblog/wp/2012/09/19/other-countries-dont-have-a-47/

http://www.nytimes.com/2013/02/22/business/a-tax-that-could-change-the-trading-game.html?pagewanted=all

Sources Cont. http://articles.washingtonpost.com/2013-02-26/business/37307773_1_transact

ions-tax-financial-crisis-financial-sector

http://www.forbes.com/sites/davidmarotta/2012/12/30/trickle-down-taxation/

http://www.marketobservation.com/blogs/index.php/2011/02/13/a-broad-and-strong-middle-class-is-key-for-a-stable-democracy?blog=10

http://theeconomiccollapseblog.com/archives/america-the-fallen-24-signs-that-our-once-proud-cities-are-turning-into-poverty-stricken-hellholes

http://www.jstor.org/stable/1928532?seq=2

http://www.marketobservation.com/blogs/index.php/2011/02/13/a-broad-and-strong-middle-class-is-key-for-a-stable-democracy?blog=10