Sunday

Tax cuts for the wealthies or not?

An income tax is a tax imposed on the income of individuals or businesses (corporations or other legal entities). 

However, most of us don’t want to pay taxes. This is understandable because we think that if we didn’t have to pay taxes we would have more money to spend for ourselves. But then who would pay for things like schools, roads, hospitals, the military, government employees, national parks, and so forth? Imagine how much you would have to pay if you had to pay for these things by yourselves. So having a system in which everyone pays for the things we all benefit from makes sense, right.

Nonetheless, we have to ask the question, are our taxes used wisely?
Here I can only answer with a NO!

I think one of the reasons why our taxes are not used wisely is that our professional politicians often do not have our well-being in mind but merely their own.  

Consequently, our politicians have adopted an attitude to please the ones who help them to stay in power.

Now, to have a chance to be reelected you need a lot of money.
This money can only come form people who have a lot of money.
Therefore our professional politicians do everything in their power to please the wealthy by giving them tax-breaks.

And here is the dilemma:
The Republicans now want to extent the tax gift (implemented during the George W. Bush-era) to the wealthiest because they need their support to be reelected in 2012.
Does this make sense?
Many American believe the Republican politicians who claim that this is good for the country, not just good for Republican politicians.

However, the fact is that most leading academic economists agree that this would not have any benefits for the U.S economy as claimed by the Republicans. To the contrary, almost all leading academic economists agree that it would, as President Obama had said, only increase governmental debt. Moreover, it would put the greatest tax burden on the low- and middle-class-income as well as decrease competitiveness.

Well, who should we trust?
Should we trust professional politicians (Republican politicians) or independent academic economists?

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