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Contemporary Tax Policy: A Comprehensive Analysis

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Published in Contemporary U S Tax Policy (Urban Institute Press)

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Contemporary U.S. Tax Policy (Urban Institute Press)

by C. Eugene Steuerle

4.7 out of 5

Language	:	English
File size	:	4025 KB
Text-to-Speech	:	Enabled
Screen Reader	:	Supported
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Print length	:	358 pages
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Tax policy is a complex and multifaceted subject that has a significant impact on individuals, businesses, and the economy as a whole. In recent years, tax policy has come under increasing scrutiny as governments around the world grapple with rising budget deficits and the need to address issues such as income inequality and climate change.

This article provides a comprehensive overview of contemporary tax policy in the United States. It examines the different types of taxes that are levied, the impact of taxes on different groups of people and businesses, and the role of tax policy in achieving economic and social goals.

Types of Taxes

There are three main types of taxes that are levied in the United States: income taxes, payroll taxes, and sales taxes.

Income taxes are levied on the income of individuals and businesses. Income taxes are the largest source of revenue for the federal government.
Payroll taxes are levied on the wages and salaries of employees. Payroll taxes are used to fund Social Security and Medicare.
Sales taxes are levied on the sale of goods and services. Sales taxes are typically levied by state and local governments.

The Impact of Taxes

Taxes have a significant impact on individuals, businesses, and the economy as a whole.

Individuals: Taxes can affect the disposable income of individuals, which can have a significant impact on their standard of living. Taxes can also affect the decisions that individuals make about work, saving, and investment.
Businesses: Taxes can affect the profitability of businesses, which can have a significant impact on their investment and hiring decisions. Taxes can also affect the competitiveness of businesses in the global marketplace.
Economy: Taxes can affect the overall level of economic activity. Taxes can also affect the distribution of income and wealth.

The Role of Tax Policy

Tax policy plays a significant role in achieving economic and social goals. Tax policy can be used to:

Raise revenue: Taxes are the primary source of revenue for governments. Governments use this revenue to fund public services such as education, healthcare, and infrastructure.
Promote economic growth: Tax policy can be used to encourage investment, saving, and job creation. For example, tax breaks for businesses can стимулировать investment and create jobs.
Reduce income inequality: Tax policy can be used to reduce income inequality by taxing the wealthy at a higher rate than the poor. For example, progressive income taxes are designed to reduce income inequality.
Protect the environment: Tax policy can be used to discourage pollution and promote renewable energy. For example, taxes on carbon emissions can discourage pollution and стимулировать investment in renewable energy.

Tax policy is a complex and multifaceted subject that has a significant impact on individuals, businesses, and the economy as a whole. Contemporary tax policy is facing a number of challenges, including rising budget deficits, income inequality, and climate change. Governments around the world are grappling with these challenges and are experimenting with different tax policies to address them.

The future of tax policy is uncertain. However, one thing is clear: tax policy will continue to play a significant role in shaping the economy and society in the years to come.

References

Congressional Budget Office. (2018). The Economic and Budget Outlook: 2018 to 2028. Washington, DC: Congressional Budget Office.
International Monetary Fund. (2017). Fiscal Monitor: Tackling Inequality. Washington, DC: International Monetary Fund.
Organisation for Economic Co-operation and Development. (2017). Tax Policy and the Economy. Paris: Organisation for Economic Co-operation and Development.

Contemporary U.S. Tax Policy (Urban Institute Press)

by C. Eugene Steuerle

4.7 out of 5