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Chapter 12 HMWK

If you want to read more about government expenditures one source is the Economic Report of the President, available online here: http://www.whitehouse.gov/administration/eop/cea/economic-report-of-the-President/2014 (Links to an external site.)Links to an external site.
Now that you have had a chance to think about tax systems which type do you prefer - progressive, flat tax, income, consumption - there are quite a few possibilities.  How do you think the concept of equity or fairness fits into a tax system? How about incentives?  President Trump says the last tax bill caused structural changes in the economy that will lead to more growth.  What do you think?
The Fiscal Ship game has a section on tax policies - http://fiscalship.org/ (Links to an external site.)Links to an external site..  If you want to, go play that game and report back how your chosen tax policies affected the Federal budget.



It really depends on the situation. For some things, such as car registration fees, a flat tax per vehicle makes sense. I wonder if a consumption tax could benefit the public since more vehicles on the road contributes to more wear and tear. Perhaps people could be taxed for the amount of miles they've driven since last year, or an additional amount for a second and third vehicle.

I would really love to eliminate the federal income tax. It skews the incentive to work, thus reducing economic growth. But the progressive system seems most fair since it reflects ability to pay. However there is much debate over what percentage seems reasonable.

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