Why EITC and CTC are so important for Low- Income Families. POL201 Instructor James Ronan June 10, 2014 I’m going to discuss two of the policies that have helped million come out of poverty. One policy is EITC and the other is CTC. They are both tax codes that may families can use to help with raising their children and helping with getting out of poverty. “The test of our progress is not whether we add more to the abundance of those who have much; it is whether we provide enough for those who have too little.” (President Franklin Delano Roosevelt) What great words from someone who understood what the American economy would be like in the future.
Bartender Bailout The Missing Piece of the U.S. Economic Bailout Plan By: Derek Hubenak Bartender Bailout: The Missing Piece of the U.S. Economic Bailout Plan The United States congress decided to enact an economic plan to rebuild the U.S. economy and, in turn, has directly affected my income extensively. I have seen the effects of our economy slowing as consumers hold tight to hard earned money because of a fear the markets may crash any day. The Dow drops continuously and consumer spending drops just as fast. One can not thrive without the other. The US economic bailout plan is unethical and outright criminal.
The author’s main theory is that the economy is headed for a recession. The text book defines fiscal policy as: Changes in government spending and tax collections designed to achieve a full-employment and non inflationary domestic output. Government spending is understated and slightly overlooked in the article. The author only hints of the fact that federal government spending on defense is down. “Another negative factor was a 6.6 percent drop, on an annualized basis, in federal defense spending.” She supports that the decrease in GDP is directly related to the decrease in government spending g which proves how fiscal policy can affect overall economic growth.
It requires employers to provide their workers with insurance or they will face a payroll tax of 8%. According to the republicans, this is a disguised tax on employment that would increase the costs of hiring a worker. Hence employers will seek ways to off-set the added costs by raising the prices, lowering wages, reducing other benefits such as pensions, shifting workers from full-time to part-time etc. (Tanner, Michael 2009). President Obama’s administration does not deny that this is a new tax, but the opposition implies that if it is a tax than it’s definitely bad.
Individuals are losing jobs and the government have to spend more money of benefits. They collected back less from taxes and VAT. Businesses are cutting back on productions but for some customers is good if they have money because the prices are falling as well as inflation. At the boom stage the GDP (Gross Domestic Product) are the values of
Fox and Fumia commented that “the source of the stress on families is clear: economic changes have undercut the gendered division of labour on which nuclear families were built” (pg.458). They state that the government has cut back a lot of money that helped the working family, writing “cutbacks in social services generally have increased families (i.e. women’s) responsibilities for providing care for dependants” (pg.458). Fox and Fumia do not base their arguments on any research that they have conducted. Rather they are basing their facts on controversial issues.
He also asked the congress for cash-strapped local governments to hire more teachers and firemen. This affected American teachers and firemen because they had better opportunities to pursue their careers. In March 2010 President Obama created a National health care reform system for uninsured Americans. This system allows them to buy into health care plans with added subsidies and tax incentives but it also prevents the insurance companies from denying coverage. Economist believes that this system will do nothing to control cost but the budget office believes the bill will reduce the cost over a ten-year period.
John majors government came into office after the downfall of Margret Thatcher, which ultimately created divisions within the party. Not only did the party suffer from the internal conflict but also faced the problems of the recession after the ‘Lawson boom’. In order to stabilise the economy he joined the ERM getting a good deal but ultimately resulting in ‘black Wednesday’ causing Major to raise interest rates to 15%. This was political suicide and he soon lost the support of the press we had once relied so much on to get re-elected in 1992. The housing market also plummeted leading to negative equity, which the majority of the working class could not afford resulting in the repossession of their houses combined with the drastic increase in unemployment Britain was in a mess.
Also, when employees are laid off there is less income tax to be collected and to make things even worse, former employees can collect unemployment benefits from the government. These unemployment benefits cost the government money. Massive layoffs of employees are one of the worst setbacks an economy can
In my opinion it is a sick cycle, which enviably will reduce the standard of living in the United States. The individuals seeking to pay less for their purchases don’t realize the effect it has on the surrounding economy, including reduced wages, reduced community support, reduced business opportunity, reduced land values, reduced tax base, and ultimately lower standard and quality of living for most members of the community. I personally think that Wal-Mart is a modern day monopoly. It kills the competition. This is harmful for our economy.