Government and the Economy

Personally, I do lean towards a capitalist society, some of the ideas of socialism need to be incorporated in our society, because without a balance of powers between classes, then our democratic society will eventually fail if the entire system is in a state of turmoil. It is evident that the economy greatly impacts the government. It is blatantly obvious that our current federal debt in the United States is a huge problem that needs to be addressed and solve as soon as possible, and without reaching a compromise between the political parties is absolutely essential if we wish to keep our current system. This burden falls on the current leaders of our government, and it is our duty to elect officials that we believe will best represent our political desires. Certain issues that I believe must be of the utmost importance this year, include education, the distribution of wealth in terms of taxation, and the government’s role in the economy.

In terms of the general role the government should play in the economy, in my opinion, is that they should be fairly involved, yet still limited in terms of the free market enterprises. Currently, the government plays a significant role in the economy for a capitalist system. The government is essentially the largest corporation in America in terms of spending, jobs, and taxes, as well as other factors. If we were to severely limit the government’s role in the economy, then we would face even more severe economic problems. However, I do believe that since the government is such a key component in the economy, I believe that they, rather than large businesses, have the power to limit the large corporate executives that hold such a large percentage of the country’s money. Some issues that I believe the government should focus more on largely revolve around the general theme of a more evenly distribution of wealth. The most effective method of dealing with this problem would be changing our current taxation system to benefit the majority of the population, rather than focusing solely on wealthy Americans.

In terms of taxation, I believe that the best form would be a national sales tax. I believe that it will suit our economy the best, and in terms of fairness, it is highly acceptable. Obviously our government requires taxes to keep the system running smoothly and avoiding complete anarchy, it is apparent that no matter what, the taxes need to be paid. I believe that in order to achieve fairness, a tax that applies to the amount of goods people purchase is more advantageous than a form of taxation that focuses solely on income. Some advantages to the NAT would be that it is fair, because it is a tax that is only added to the number of new goods that each individual buys. Furthermore, it is easy and efficient which almost entirely eliminates loopholes and makes it easier for both the consumer and the government. I suggest that the tax rate should begin at 20% and as the economy becomes more stable, then the tax can be lowered to 15%. Used goods, fresh produce, medicine, public transportation, and investments would be the few loopholes that would not be taxed, however luxury items, such as yachts, expensive cars, and additional houses would have a tax rate of 23%. I believe that this form of taxation will best suit the majority of the population, rather than the progressive system we have currently where there are so many loopholes, that a little less than half Americans don’t pay taxes.

Another issue that is important for our congress to decide is the issue of government deficit spending. Currently, our government hasn’t been in this much debt, except during the Great Depression, and it is absolutely essential that some conclusion must be made. Granted, it will take years to recover our current national debt, however if we enact certain restrictions on the government’s spending, then we have a better chance of decreasing federal debt. Most of the money that the government is spending is necessary; however, there are certain cuts that must be made on less important spending in order to close the margin of debt. There is no immediate solution that will repay our debt quickly, however if we limit the government’s spending in certain areas, we will eventually begin to repay that debt and once again make a national profit. Some of the government’s spending is necessary, yet some things can be limited and cut.

In conclusion, in order to restore our country’s economy, it is necessary that we each do our civil duty that will better prepare our country in the future. The government is of vital importance to the economy, and it still must contribute greatly to the economy. We cannot be entirely capitalist, because the government must play a role in the system; otherwise a rebellion would result. Yet it also must have limitations as to where it must limit its spending. Naturally, no one enjoys paying their taxes and seeing their money go somewhere other than their income, however taxes are necessary to keep our country functioning. It is absolutely necessary to resolve our current debt situation, yet since there is no immediate solution, a long term solution must be enacted as soon as possible that will limit deficit spending now, and will reach a productive goal in many years.

Tax Manifesto

By the end of the tax lesson, I have gotten a much better grasp of the very detailed nature of taxes, and how significant they are in each an every country. It is obvious that taxes are absolutely necessary in order to have a properly functioning society. However, it is also necessary to enact rules and regulations in order to maintain that system in the best way possible. The burden of those decisions falls on the shoulders of the taxpayers and voters, because we have a say in the forms of taxation of the government. Although it may not seem like that now, it is important that voters choose their respective congress members that they believe will most accurately represent their individual beliefs, especially their opinions on deficit spending. When considering the different forms of taxation, it is important to choose those which are able to find a balance between the taxpayers paying too much, and the taxpayers paying too little. It is very difficult to find the middle ground, but seeing as everyone is entitled to their own opinions, the United States' taxation system must accurately represent the most approved form, not only from the congress members and wealthy business owners, but also every single other taxpayer.

My personal opinion on the role that the government should have the economy is that they should play a very minimal role. The most important thing that I should think that they should do is focus much of their attention on the distribution of wealth. One way they can do that is enact a progressive taxation system. It is apparent through the Occupy movements that the lower and middle classes are unhappy with their standard of life right now. Certain congressmen and the wealthy business owners have a very significant impact on the government right now, only because of the ridiculously unfair distribution of wealth. It is also important, however, to keep in mind that the voters and taxpayers should ideally have the same leverage in the government, yet this is obviously not the case. It is our job, as citizens to voice our opinions by a productive manner by choosing congressmen and presidents that we personally believe will best voice our own opinions, and through that we will be able to accomplish what we desire to. Our economy has fluctuated greatly throughout time, and even without governmental intervention it has rebuilt itself. I would personally like to think that this recession will get better soon, and that we, as a nation, have learned valuable lessons through its consequences.

Furthermore, another important topic is the issue of deficit spending within the government. Our national debt at the moment is rapidly growing daily, and I believe it is our individual obligation to limit the government's spending. I believe that it is important to make cuts in government spending, because we are entirely unable even now to repay all of our debt. We rely heavily on the economies of other countries, and in order to reboot our economy, it is necessary to limit the government's spending now. Obviously it is unrealistic to stop spending altogether, much less reverse it, but we need to find tools that will help us begin to slowly repay it in the future, or else we will continue to pay our debt to other countries for hundreds of years. Very few times in history have we had years where we have made a larger profit than we have sold, and it is unrealistic to believe that we will get to a point where we will never have deficit spending. Yet, it is our duty to limit the government's spending, and be able to eventually begin to pay for our debt.