Sunday, February 26, 2012
More Uncertainty for 2013
One of the tool the government can use to intervene in the market is tax. But the tax system in United State has so many uncertainty, which affects how many companies and individuals make decision. I think the tax system needs to change, and a more stable tax system seems to be more appropriate for long-term growth.
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3 comments:
Taxes in America have always been a widely debated topic. Liberals and conservatives will always continue to have their respective ideas on the subject, which makes it hard to implement any kind of change. I don't think we are going to see any kind of radical change because of this in the near future, but more of a slow shift in the tax system. I could see an eventual consumption tax, like the ones already implemented in many European countries.
I think the first sentience of this article sums up the US tax system nicely. From the looks of it, there will by tax increases across the board, but I wonder if resistance from the Republican camp will keep some of the tax cuts alive. If they do, I'm sure they realize that they can't win everything, so it will be interesting to see which group of taxes they will fight for.
Debates about raising taxes are kind of wacky. Other countries pay tax rates that are way higher than ours, not to mention we used to have much higher tax rates 50 years ago. I do think that incentive programs for lowering taxes on companies that focus on green energy/ technology are a good idea.
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