Special Topic

Special Topic 1

2. Economics does not indicate that this change will help Americans achieve higher living standards, the higher the GDP, the better the economy and the better quality of life. Even though there is a change in federal spending, national defense is no longer the primary focus of the federal government. Spending on the elderly is almost certain to increase as the baby boomers move into the retirement phase of life during the next two decades.

3. I am quite neutral about this feature of the current tax system because citizens labeled at the bottom 50%of income group for the internal revenue service are quite happy that their share of the total federal personal income tax is 2.7%, thus allowing or creating the mentality that it is okay to maintain the living standards to that of the 50% will naturally feel betrayed and cheated by these features simply because they are carrying the load for the rest of the country to remain balance. I believe there should be a standard percentage for citizens in each group, this way every citizen will be responsible for their individual share of taxes.

4. The top marginal personal income tax rate in 1980 was 70% and the current top marginal personal income tax rate is 39.6%. I am in favor of the lower marginal rates because there is more money in my bank account. However, concerns are present with reductions in the top marginal personal income rates that will impact savings, investment and productivity growth.

7. Democracy cannot survive if the majority of citizens pay little or no taxes, the government is financed through taxes and the major share of the government of the United States spending is directed towards the elderly for social security and Medicare, the unfunded future benefits promised under social security and Medicare will become an official federal debt.