Economy and the government

The economy is a vital factor that the government of a given country considers. Various countries’ economies are now beleaguered by a slew of problems. These issues have a wide range of consequences for national growth. As part of the attempt to resolve any of these issues, proposals are developed and eventually adopted by the different branches of government (Campbell). This paper reflects on the tax sharing element of the United States, which is one of the economic problems facing it at the moment. Furthermore, it addresses the various responses to this topic as well as the government’s responsibilities in providing effective solutions to economic issues challenges. At the moment, the U.S. is facing issues with tax distribution amongst its people. It is debatable on the amount of tax that should be charged to various groups of individuals in the nation, and the question has remained as to whether to raise the tax rates for the wealthy people or not. On one side, it has been viewed as an injustice to collect tax from both rich and the poor at the same rate. However, on the other hand, it is likely to be unfair for two people to be charged at different rates yet they are all Americans. Therefore, this presents a national economic issue to the U.S.

To address the tax distribution issue, there are two primary competing solutions that the U.S. can adopt. Firstly, the U.S. has an option to raise the tax rates for rich thus wealthy people will be charged higher than the poor. On the hand, the state can also opt to reduce the amount of tax charged on the poor people. Either way is likely to impact on the tax rate distribution on its population. But, the option of increasing the tax rates on the rich seems appropriate since the other option of reducing the rate charged on the poor is likely to reduce the general state’s tax income.

Role of the US Government branches in the policy implementation

A successful implementation of the policy of advocating for an increased tax rate for the rich demands the participation of all the three states of governments; federal, state and the local government. The federal government is charged with the responsibility of setting this tax strategy for adoption (Campbell). However, for successful implementation, the fifty states of U.S., and down to the city, county and the general local government must support this tax strategy.

The federal government should pass the policy and put in place the process and procedures that should be followed to ensure tax rate application. This will then be cascaded to the state government which makes state policies that will help in implementing this strategy (Mourmouras and Rangazas). Further, the local government should also establish local procedures that are likely to ensure that all the residents adopt the policy. The local government must give full cooperation for the implementation of this tax policy because it is always close to the citizens and thus significantly contributes to the success of implementing this policy.

In conclusion, tax distribution system has been a current economic issue for the U.S. The problem can be best solved through a strategy to increase the tax rate imposed on the wealthy. The policy can be best implemented if all the levels of the government from federal, state and the local government. This is likely to ensure that the plan is successfully carried out in the U.S.

Works Cited

Campbell, K. A. “The Economic Role of Government: Focus on Stability, not Spending.”

Washington, DC: Heritage Foundation. Central Bank of Nigeria (2013). Statistical Bulletin 24 (2009).

Mourmouras, A., and Rangazas, P. “Fiscal policy and economic Development.” Macroeconomic

Dynamics 13(4), (2009), 450-476.