Should The U.S. Convert To A Zero Personal Income Tax?

Should The U.S. Convert To A Zero Personal Income Tax?

In 2017, Motley Fool reported at that the U.S. Government spends about $2.7 trillion for various  kinds of social insurance (Social Security, Medicaid and Medicare,  unemployment compensation, veterans benefits, and the like). Another  $604 billion, or 15.3% of total spending, went for national defense; net  interest payments on government debt were about $240 billion, or 6.1%.  Education aid and related social services were about $114 billion, or  less than 3% of all federal spending.In  spite of the services and benefits that the government provides, many  taxpayers dread paying income taxes but consider them a necessary evil.  Consequently, there is much debate about the inequities contained within  the tax code, due to tax shelters and tax credits provided to some  taxpayers (which thereby increase the tax burden on others).

Using the Internet or Strayer Library, research one (1) country that has a zero income tax rate.

Write a four to five (4-5) page paper in which you do the following:

  1. Analyze  the way in which the country you have researched provides services and  benefits to its citizens without collecting personal income taxes.
  2. For  the country that you have chosen, determine whether the U.S. could  adopt their taxation model without reducing its total amount of revenue  (as currently generated by collecting income taxes from individuals and  businesses). Justify your response.
  3. Suggest  at least two (2) advantages and two(2) disadvantages of the U.S.  adopting a zero income tax model. Provide a rationale for your  responses.
  4. Speculate  on the primary way in which the federal government could make up any  shortfalls if it does not collect its targeted revenue from personal  income taxes. Ascertain the most significant way in which the U.S.  Department of the Treasury, through the IRS, can still adhere to its  fiscal and monetary policies. Justify your responses.
  5. Use at least three (3) quality academic resources in this assignment. Note: Wikipedia and other websites do not quality as academic resources.

Your assignment must follow these formatting requirements:

  • Be  typed, double spaced, using Times New Roman font (size 12), with  one-inch margins on all sides; citations and references must follow APA  or school-specific format. Check with your professor for any additional  instructions.
  • Include  a cover page containing the title of the assignment, the student’s  name, the professor’s name, the course title, and the date. The cover  page and the reference page are not included in the required assignment  page length.

The specific course learning outcomes associated with this assignment are:

  • Examine  the types of taxes imposed at the federal, state, and local levels; the  federal tax formula; and the rules for arriving at personal and  dependency exemptions.
  • Analyze  the concepts of gross income and distinguish between the economic,  accounting, and tax concepts of gross income and strategies to minimize  gross income, maximize deductions, and minimize disallowance of  deductions
  • Use technology and information resources to research issues in federal taxation.
  • Write clearly and concisely about federal taxation using proper writing mechanics.

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