Finance

Income Tax and Consumption Tax Name Institution Income Tax and Consumption Tax In my opinion, I feel that applying consumption tax and lowering income tax would broaden the tax base. Ideally, when looking at income tax, it only applies to those individuals who report personal income whereas incomes generated from other unregistered activities are not submitted. For instance, the government is unable to collect tax from events such as gambling or prostitution. Also, people, who receive cash as instantly payment do not report their earnings. Well, poor people may end up paying a significant portion of their earning compared to affluent individuals, although the wealthy persons spend more and pay...

Fiscally Stressed Corporations Name Institution Fiscally Stressed Corporations The fiscally stressed companies are those that have been pressed to the wall by the requirements for their existence like taxes (Baumann & Thompson, 2015). Therefore, such companies are on the verge of failing. Whether the government should bail out such companies is a debatable matter. First, there is a chance that large companies may require more money to bail out than the smaller ones due to the licenses. Some may argue that not bailing out the larger companies may give a chance to the smaller corporations to develop. That is, in all fairness, a good point. However, it is no guarantee that the upcoming...

Public Finance Student’s Name Institution’s Name A minimum federal tax rate for all the taxpayers would be against what recent tax reforms have sought. A majority of Americans already suffer under the current tax regime where there is no equity in the amount of taxes that the middle class and the high-income earners contribute to the economy (Hill, 2016). Persons who live by the minimum approved federal wages if subjected to a minimum tax rate, they would leave a huge chunk of their earning to the government. However, the high-income earners and investors should get subjected to the minimum federal tax (Hill, 2016). Tax should be calculated on an escalating level depending on how much...