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| http://www.taxsagenetwork.com |
Aiding the poor without impacting the rich as much is a very complicated issue. I believe that it is worth going through various possible solutions will be the most beneficial. Through trial and error almost, we can help the government come up with ways to aid the poor.
As in my previous blog post, finding a solution to my research question is very hard. Each piece has to be analyzed and no extremes can be taken. Since I do not believe that the new tax plan proposed by Trump and Congress will be successful, this blog post will be about other options we could take. In the website I used in one of my previous blog posts, there are possible solutions that the government could try.
For example, allowing “temporary” expensing to expire could help with raising revenue. These temporary measures are considered tax cuts, but in reality they are more like tax shifts. Instead of “businesses taking their deductions in future years, they take them now.” This timing shift actually produces a long-term revenue loss of nearly zero. The idea behind bonus depreciation is to encourage capital purchases earlier and hopefully encourage the use of that capital to increase production. This article, written by Scott A. Hodge, president of this Washington D.C. organization called Tax Foundation, describes this possible option. When researching about this, there were some positives. Temporary expensing is something that causes a lot of problems and it does not do much to actually increase economic value of the nation. This is why I believe that allowing this temporary expensing to expire would mean more economic growth and therefore more money to aid the poor.
As I was researching, I realized that there will always be another option that is a little better, but through each trial, we can hopefully find an effective way to aid the poor. For later times, “one option to reduce the cost of expensing is called “depreciation indexing” or “neutral cost recovery,” which we estimate could reduce the cost of expensing by 90 percent in the first decade while providing similar economic benefits.” This is maybe something that I could look into.
