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    The Ramifications of Raising Taxes for the Wealthy

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    Axes are a part of fiscal policy and very controversial. Some politicians want to raise taxes for incomes over $250,000, representing the 2% highest incomes, and would also include budget cuts of approximately $4 trillion over the next 10 years. Another proposal wants to lower the maximum tax rate from 35% to 25%, leaving tax rates the same for the other brackets, while also proposing a reduction of total spending by $6 trillion over a 10-year period. Another proposal has advocated a simplification of taxes by eliminating all corporate and individual deductions and estimating this would reduce the deficit by $3 trillion over the next 10 years, plus there would also be reductions in spending equal to another $3 trillion.

    What are your thoughts on the three proposals outlined above, and please feel free to suggest anything that you feel should also be considered in reducing the deficit.

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    Solution Preview

    I believe that the concept of raising taxes for incomes over $250,000 will be a viable plan, due to the fact that based on an incremental approach to taxation and the payment of taxes, I believe that those individuals that are the wealthiest within the society should pay a larger portion of their income in taxes. I do not believe that the taxes for these individuals should be raised to an unreasonable level, where these individuals will be shouldering an unjust amount of the nation's tax burden, but I do believe that since paying additional taxes ...