A major part of U.S. Fiscal Policy is taxation. Taxation is the main source of revenue for the government. The tax code has been modified and grown more complex over the years. Proposed changes to the tax code continue to be debated as the country struggles with the effects of large budget deficits.
What changes would you recommend to the tax system and why? Address the following in your response:
- Attributes of a good tax
- Pros and cons of overall tax increases
- Pros and cons of progressive taxes (taxing the rich)
- Income tax vs sales taxes
- Pros and cons of the Estate tax (death tax)