Tax reform debate Essay Example | Topics and Well Written Essays - 750 words

Tax reform debate - Essay Exampleg all the economic woes that the bush-league cheek left move over opted to extend the past administrations measureation cuts, in an hunting expedition to wee the economy and to fully recover from the effects of the great recession. This move is quite ironic as the 2 Presidents came from the opposing camps of Re domainans and Democrats.Though they impart pushed for the same revenue enhancement agenda, Democrats positions are said to be Keynesian influenced, while Republicans are influenced by supply side theory, which they say is the complete opposite of Keynesians. Originally, it was the Democrats who were pushing for the tax cuts. Kennedy and Johnsons administration in 1960s pushed for tax cuts. However in recent history, the scenario was reversed Reagan and bush-league both belonging to Republican have implemented tax cuts (Chuck).1.On the positive note, the tax cut helped to stimulate the economy as people with low income were able to buy more than usual. Under Bush administrations Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA), the child tax realisation was increased 100% estate and gift taxes were repealed and income tax rates were reduced.2. On the negative side, critics argued that tax cuts have benefitted mostly the 5% of the US population who are paying about $470 Billion of the agree income tax revenue, while the next 20% of the population pays about a total of $260 billion and the 3rd who comprised the 25% of the population pays about $120 billion and the bottom earners who comprised the majority 50% of the population pays a total amount of $35 billion collectively (David,2005) .By merely looking at the figures, its simple to see that tax cuts indeed benefitted the elite 5% of Americas population.3. Consequently, tax cuts dramatically lessens government budget and increases public deficit and national governments debt. Concretely the tax cuts under Bush administration have hurt badly t he health sector. Americare reported that due to dwindling