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Economic Policy
Economic Policy Economic Policy Chad Stigall Econ 100 11/26/96 The new economic policy of the united states should include cutting taxes, reducing governmental waste, and balance the budget by having a smaller more efficient federal government. It should include equal opportunity for financial security but not through a government sponsored redistribution of wealth program. Cutting taxes across the board including income tax rates, capital gains and estate taxes among others should provide a growth spurt for the economy. Allowing people and businesses to keep more of their hard earned money would enable them to spend more money. People would be able to buy more cars, refrigerators, homes etc. The businesses would be able to build new factories with better more efficient high tech equipment. These new factories and expanded businesses would employee more highly paid workers which would expand the tax base and allow us to be more competitive in the world marketplace. Reducing the taxes would also motivate people to work harder and save more. The way things are now people can not seem to get ahead no matter how hard they work. The harder they work the more the government takes while others who choose not to work hard or have not developed the skills to earn a decent wage reap the same and in many cases more benefits. For example student loans and grants for college board and tuition fees are largely unavailable to lower middle class families let alone middle and upper middle class people. Reducing taxes on businesses would also allow them to invert more on new product development and research which in many instances the federal government now subsidizes which requires management. This government management bureaucracy cost tax payers money and is unnecessary because free market demands and the extra money they would save from tax cuts would motivate businesses to fund these programs themselves. This is just an example of what a smaller more efficient federal government. "Citizens in the united states today pay 38.2 percent of there income in taxes every year" (RNC Talking Points). This is way to much money for Americans to be paying. "Cutting everyone's taxes by 15 percent and giving them a 500 dollar per child tax credit would cut a typical families tax bill in half, allowing them to keep an average of $1,600 more of its hard-earned money"(RNC Talking Points). The question is often asked as it was in the recent presidential election, how can we balance the budget and have significant tax cuts? There are several ways in which the government can cut taxes while maintaining worthwhile government subsidized programs, which will be discussed in this paper. To have funded tax cuts the government will have to cut spending by eliminating waste and by reforming while preserving needed entitlement programs such as Welfare, Social Security and Medicare though slowing the rate of growth in spending on them. As quoted in a Business Week editorial "Cutting the growth in Medicare spending by $150 billion would help open the way for a truly balanced budget, lower interest rates and higher economic growth" (A Vote for a Sensible Center 194). To eliminate waste the government will have to cut programs that are no longer needed and programs that overlap each other. "The federal government today has 163 separate job training programs, 26 food programs and 180 educational programs. The government needs to eliminate some, consolidate some and change others" (The Balance Sheet). The government can also cut waste by cutting the amount of money that some of the governmental agencies receive for example the "Republicans want to cut funding for the Commerce Department and the department of Urban Development budget by $715 million, Foreign Aid by 11.5 percent, Defense budget by $6 billion and the congresses budget by $205 million" (The Balance Sheet). They can also reduce waste by spending money more wisely which can be accomplished by reforming some of the government agencies such as wel...This is ONLY a preview of the article. If you would like to view the entire document, you must subscribe to Electronic References. Please register below now! Get This Full Article After Registration
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