It has always been a matter of money and there are a lot of ideas floating around from both sides and every angle. What is exactly going on in the American government’s money issues? Let’s start with the Republican proposals we have seen in light of recent event.
The “compromise” tax bill proposed in early August sums up generally how the Republicans are going to fix the problems we face. It starts with the elimination of estate tax altogether, a little radical but could be effective. The tax now under current standards will be set to collect just over $ 50 billion, a miniscule amount as depicted, the elimination of this tax in theory promotes excess luxury spending, which comes back around to pay substantially more revenue and window for expansion. The only down point seen here as with any idea to promote spending is the frugality of the general public and lack of even frequent bank goers. The second very similar change is a reduction of the capital gains tax. The IRS will collect about another $ 50 billion in capital gains. Reducing this will put the money right into the hands of the top 5% of the economic community. These savings again promotes serious growth and the expansion of domestic business. Though it seems to be flawed because of the lack of immediate distribution and the again frugality of the people of America. Subsequently it goes on to lower alternative minimum tax, more contributions from the IRA to the people and expanding current tax programs to a wider variety of businesses.
The Republicans have seen mixed feelings about the compromise but the core values of the Democratic ideas differ much. They are really going after just the opposite groups with the same ideas. The Democrats have the Made in America Act which sums up current efforts. This list of ideals starts with the taxation of outsourcing and other corporate loopholes that prevent the Americans from getting the jobs. These loopholes prevent small businesses from being effective competitors as well. Taxing them will not only raise cost, making an equal level for small and large business alike but promote the creation of American jobs in America. It goes on to focus on small business, expanding on credit and reducing expansion tax. These both act as incentives for small businesses everywhere to shine. The expansion tax reduction seems as if it would work well. To address this I would like to look to the 3 separate acts passed by Democrats all doing the same thing: The Small Business Jobs Act, The Manufacturing Enhancement Act and the Unemployment Compensation Act. These all address similar issues with the same means, it didn’t work 4 months ago its not working now. Moving to the credit, as with anything too much of a good thing is usually bad. Extending credit to those who normally wouldn’t have the option… hmm sounds like a certain plan that sent us into the recession we face now. Making loans sound too appealing leads to defaulting, failing banks and the crack in this idea. New horizons are also seen with the act, those of green and government works. Adressing the climate issue with tax breaks, I can see no flaw this is perfection in the making, exactly what the country needs. Government works on the other hand is a different story. Many will say it worked for FDR it will with Obama, nay I say to them. Government works programs are a false sense of hope almost setting the dollar higher on a cliff ready to jump.
We see both sides have their benefits and flaws very present. It did seem that I favored the Republicans on this matter because I do believe with the proposals shown the Republicans are better addressing the issues correctly. Found something, want to prove me wrong and best my wit, leave it in the comments which are there for debate. I would like to see what you think is the best or if the government should do nothing at all.