Current Issues
... then pays for the tax cuts? Well in this situation, almost nobody, except future generations that is. The Bush tax cuts were not accompanied by spending reductions thus increasing the estimated deficit to $520 dollars, not including additional spending bills that may or have been passed for the war in Iraq. At some point this deficit will have to be reduced. Thus in the future, either taxes will have to be raised or government spending cut, or a combination of both. If government spending is cut it would seem that social programs would be likely to take a hit, thus insinuating that the lower income class in the future may pay for these tax cuts now in the future, since most social programs are aimed at the lower class. The major participants in the area of tax are state and local governments as well as the federal government. In the case of this particular issue, the United States Senate, the United States House of Representatives, and the President of the United States are the main participants. Interest groups can also play a major role in taxation. In this case, big business would have a major interest in the tax deductions since they favored business. This also goes along with the president’s ties to big business and the Republican Party’s historically pro-business attitude. Big business has a lot of money, and money can help finance future election campaigns, and big business likes to contribute a lot of money to election campaigns. It all goes hand in hand. Taxes are important to our government and our society. Without taxes most social programs wouldn’t exist. Without taxes government would play a much smaller role in today’s society, since there would be no way to fund the governments actions. The government used to be able to fund itself on tariffs received from imports, but today the United States exports more than it imports. Tariffs are also much lower by percentage today than they used to be. Taxes also play a large role in economic policy. In general, if taxes are lower,...