Question

How does the tax system foster inequality and effect the economy and market structures? Do you agree or disagree with the need to change the tax system? Do you think changing the tax system is possible in the current political economy? How will the tax bills which passed recently by the Senate and Congress effect your taxes? How will the effect inequality? What are your suggestions?

Answer 1

How does the tax system foster inequality and effect the economy and market structures? Do you agree or disagree with the need to change the tax system? Do you think changing the tax system is possible in the current political economy

1.The tax system foster inequality when it falls more on the low income earners who forms the larger portion of the citizens of the country than the high income earners. This is because the poor will pay more of the taxes more than the rich thus causing inequality in the country.

The tax system may lead to growth of the economy or decrease in growth the economy. This is because a tax system which increase the taxes will lead to decrease in the spending of the citizens thus decrease in the demand of goods and services thus decreases in the growth of the economy and the vise versa is true.

Tax system impacts on the type of the market structure in the economy of the country .For example high taxes may lead to monopolistic market structure, this is because only those companies who will be able to pay the high taxes will remain in the market leading to monopolistic market structure.

2.I agree with the need to change the tax system .Changing the tax system will help in having a tax system which does not encourage inequality and encourages equal distribution of resources in the economy.

3.I think changing the tax system is possible in the current political economy since the politician will use the change in the taxes system to achieve their political agenda.

Explanation:

Tax system in the economy will affect different sectors of the economy and the economy at large .This because tax system will affect the amount of income that individuals will remain with to use in his / her spending thus impacting in the growth of the economy. It will determine the number of firms that will remain operating in the market thus impacting on the market structure.

Tax system helps in the distribution of resources in the economy thus helping in solving the problems of inequalities in the country.

Tax system can easily be changed since they are normally used by politicians to foster their political agenda.

How will the tax bills which passed recently by the Senate and Congress effect your taxes? How will the effect inequality? What are your suggestions

The recent bills that were passed by the Senate and the Congress will make our tax bills to reduce.

Explanation:

The recent bills that were passed by the Senate and the Congress generally have reduced the tax rates, a factor which will make the tax payers to pay less taxes to the government than before. Most of the tax rates of the different tax brackets have been decreased implying that the tax payers would pay less. For, instance, the recent bills that were passed by the Senate and the Congress have eased the individual alternative minimum tax, introduced some tax relief for families and individuals. Moreover, the recent bills that were passed by the Senate and the Congress have eliminated or reduced some tax deductions. For instance, the personal and dependent deductions have been eliminated under these recent tax bills. The healthcare tax penalty has also been eliminated.