Tax deduction and Loopholes
I discuss issues on how taxes should be changed and organized differently.
Dear future president of the United States,
I am writing to notify you of a concern that I would like you to change. Income taxation and corporate taxation need to be distributed differently and in a better manner. The rich (or the one percent) are becoming extremely rich and the middle/lower classes are becoming poorer than ever before. The statistics show this and all of this raises concerns for families with children, and parents with blue collar jobs. Rich people and corporate business have found ways of avoiding taxes. Some have even avoided paying taxes completely. This causes problems, and it leaves all the middle/lower class people to pay an unfair share of the taxes. Although not all rich people or corporations do, tons have and this leads to very intricate and troublesome changes. Taxes have to be raised, budget crises, and other kinds of issues. We have to change this for the better of the people in the country.
Loopholes have got to be the biggest downfalls in this whole scenario. Loopholes are not illegal in any way, but they have to stop. Loopholes with taxes are usually caused by rich people because to be able to cause one to happen, you need money. For instance, if you can invest large amounts of money on stocks, you can gain tons of money from stocks, if you know where to invest. The thing is, is that the tax rate on stocks is reduced for some reason. There is another problem, when you donate money to a charity, that also decreases your tax rate by a significant amount (depends what tax rate you fall in/ charitynavigator.com). This is a problem because if you invest in stocks, donate money to charities, and you’re rich, you are almost paying nothing in taxes.
One last Loophole that I would like to mention is the loophole with building your business outside of the country. Companies like Apple, Google, Facebook, etc. are building outside the country in Ireland and are avoiding taxes on income. This is called the “Double Irish Strategy” and this loophole needs to stop. It’s not fair for some people to be saving tons of money and others paying more. Google, Facebook, and Apple save about 8 billion when doing this (visualeconomics.creditloan.com).
In conclusion, I hope you can take this statement into account president. The poor/middle class need relief from taxes. Raising capital gains taxes and lowering income taxes is also something that we should look into. It makes more sense to raise taxes on that than to raise taxes on only the rich. Getting rid of some loopholes would benefit the economy too, and it would make it fair for everyone. I hope you can take these ideas into account and make the people of the U.S. elated again.