What will be the impact of Trump’s tax proposal?
Describe the impact of the proposed tax cuts on the US economy for the next few years.
Will there be any decreases in Government spending if the GOP tax proposals pass. Explain.
Does Trump’s proposal mirror the Reagan tax cut of 1986? Explain.
Describe the effect of the 1986 Reagan tax cut. Also explain the difference between the Reagan approach in 1986 and the GOP approach of 2017.
Wow! How many books does your instructor expect you to write? Isn't the current tax proposal at least 1,000 pages long?
You're going to have a lot of research to do to even scratch the surface.
Oh, my. This is a very complicated issue, and analyses vary a great deal, mostly on the basis of political and economic ideology. I'll give you one non-partisan analysis, but you'll have to look up others to get a full picture. It's made more difficult because the final bill was just released last Friday and almost nobody has had time to read some 500 pages of very complicated specific changes and fully analyze them.
Here are, in fact, several analyses, all of which may be out of date, since the final bill was just released and made public, even to the full Congress, three days ago.
https://www.google.com/search?q=tax+policy+inst.+2017+tax+reform+proposal&ie=&oe=
To compare the 2017 proposals to 1986 is also somewhat difficult. Both were based on the theory that cutting taxes on large corporations and the wealthy, investor, class would result in "trickle down" benefits to the public at large and the economy by giving the businesses and rich people more money to invest in making products and services, thus hiring more people and raising wages. It's called "supply side" economics, on the idea that the greater the supply of goods and services, the more people will buy and use them. "Demand side" theory says that if consumers have more money to spend, with higher wages, lower taxes, we will demand more products and the economy will grow.
The process to arrive at a new law was very, very different in 1986 than this year. In the '80s, it took many months and many Congressional hearings, meeting with experts, etc., from lots of interests to arrive at a new law. This year, there have been no hearings at all, and the entire thing has been put together very, very quickly, in a matter of a few weeks, with the result that nobody is fully aware of what is actually in the proposed law that the House was to vote on today, the Senate tomorrow.
The result in the '80s (there were big tax cuts in 1981 and '82, before the tax reform act of '86) was that government income from taxes fell dramatically and the national debt increased dramatically, since the things taxes pay for also increased. Taxes had to be raised again, several times, and borrowing increased by 184% during the Reagan administration (compared to 1981, the last year of Carter administration planning). It's projected that the national debt will increase by one to two trillion dollars in the next ten years if the current proposals are enacted. The idea is that we will cut spending and the economy will grow to offset the loss of revenue by cutting taxes, but that is not guaranteed at all. It's an "educated guess" as to what the impact over the next ten years will be, and wholly depends on a lot of "ifs" - if this happens or if that happens.
http://www.nber.org/papers/w4022
To answer these questions, we can start by looking for reliable sources of information such as news articles, government reports, and economic analyses. Let's break down each question and discuss how to find the answers.
1. What will be the impact of Trump's tax proposal?
To understand the impact, you can look for expert opinions from economists, tax policy analysts, and relevant government agencies. Sources like the Tax Policy Center, the Congressional Budget Office (CBO), and independent think tanks can provide insights into the potential effects of Trump's tax proposal on aspects such as economic growth, job creation, income inequality, and government revenue.
2. Describe the impact of the proposed tax cuts on the US economy for the next few years.
To determine the impact on the economy, you can review economic analyses and models that simulate the projected effects of the tax cuts. These studies might consider factors such as changes in consumer spending, business investments, employment rates, and overall GDP growth. Reports from financial institutions, academic research institutions, and government agencies like the CBO can provide valuable information in this regard.
3. Will there be any decreases in government spending if the GOP tax proposals pass? Explain.
To examine the potential impact on government spending, it's important to review the specific provisions of the GOP tax proposals and their potential effects on government revenue. Additionally, you can analyze statements from politicians, expert opinions, and analyses from institutions like the Tax Policy Center, the Committee for a Responsible Federal Budget, or the CBO, which often project the consequences of proposed legislation on government spending.
4. Does Trump's proposal mirror the Reagan tax cut of 1986? Explain.
To determine if there are similarities between the Trump and Reagan tax cuts, it is necessary to compare the specifics of the proposals. You could analyze factors such as the goals, approach, tax rates, deductions, and overall consequences of each plan. Expert analyses, historical comparisons, academic papers, and government reports from the 1980s can provide insights into the Reagan tax cut, allowing for a comparison with the current GOP tax proposals.
5. Describe the effect of the 1986 Reagan tax cut. Also explain the difference between the Reagan approach in 1986 and the GOP approach of 2017.
To understand the effect of the 1986 Reagan tax cut, you can analyze reports and studies from that period. Evaluating economic growth, job creation, income distribution, government revenues, and other relevant indicators would shed light on the consequences of the Reagan tax cut. Comparing the Reagan approach with the GOP approach of 2017 involves examining the key similarities and differences in tax rates, deductions, objectives, and potential outcomes. Expert opinions, historical records, academic papers, and government reports can provide valuable information for these comparisons.
Remember to critically assess multiple sources for a well-rounded understanding of the topic and to consider a range of perspectives when evaluating the potential impacts of tax proposals.