Budget and Tax Policy Issues

Some of the contraversies with it are the necessary tax level, whether deficits should be tolerated, and whether the tax burden should be primarily on the wealthy. Because our government responsibility is divided between the federal government, the states, and local government; taxes are collected by all of these branches. The income tax is the principal tax collected by the federal government. As measured by the Gross Domestic Product, the federal tax level ranged between 17% and 20% during recent decades until it precipitously dropped under the 17% level because of the Bush Administration tax cuts. The Federal Budget is presently $2.5 trillion which represents about 20 percent of the gross domestic product. Contrary to common perceptions, the cost of the federal government when compared to the GDP has steadily decreased from a peace time high of 23.5 percent in 1983. Defense expenditures have gone down while Social Security, Medicare and interest expenses have gone up. One reason for the increase in Social Security portion of the budget is that there are far more retirees entitled to Social Security benefits now then there were in the 60s. A budget deficit occurs when taxes do not generate enough income to cover the costs of government programs. Unlike many states, the federal government is under no mandate to balance the budget on a yearly basis. To a certain extent, government revenues are dependent on the state of the economy. If the economy is robust and there is low unemployment, more people will have taxable income and revenues will increase. the income tax is a progressive tax which means that individuals with larger incomes bear a larger tax burden. The degree to which the tax is progressive has fluctuated significantly in the past two decades and more of the tax burden has shifted to the middle class. From the mid-1960s until 1982 the tax rate ranged from about 15% for the lowest brackets to about 70% for the highest. Under President George W. Bush's tax proposal the maximum tax bracket would be reduced to 33%. The ultimate tax package agreed to by Congress has reduced the maximum rate to 35%. There is a wide difference between the two parties. Republicans favor lower taxes and low marginal rates for the wealthy. Republicans overwhelmingly supported the tax package passed by Congress in 2001, whereas it was opposed by most Democrats.  Democrats supported the 1993 legislation which raised the maximum tax rate.


http://www.newsbatch.com/

Issues with Death Penalty

In June 2008, the Supreme Court held that it was cruel and unusual punishment to use the death penalty against individuals convicted of raping a minor. In April 2008, the Supreme Court has held that lethal-injection procedures in Kentucky do not violate the Eighth Amendment's prohibition against cruel and unusual punishment. The number of Americans supporting the death penalty has begun to decrease, although over 60% still support it. China has become a more visible international power, its excessive use of the death penalty has come under increasing international scrutiny. Capital punishment was widely applied in ancient times throughout the world. The modern movement for the abolition of capital punishment began in the 18th century with the writings of Montesquieu and Voltaire. Today, over half the countries in the world have abolished the death penalty either by law or through practice. The U.S. Supreme Court in 1972 struck down state death penalty laws, a ruling that also brought federal executions to a halt. In 1976, the court reinstated the death penalty after the adoption of new procedures. The number of executions has gradually increased as appeals have become exhausted. In 1999, the number reached 100 but it has dropped since. Among the 50 states, the death penalty is abolished in 13 states and 5 more states have not carried out any recent executions. In most states the method of execution is by lethal injection although in several states the prisoner may choose an alternative method. Nebraska stills mandates electrocution but a court decision has held that the method is unconstitutional. On March 1, 2005, the U.S. Supreme Court abolished the death penalty for minors. Prior to this ruling, minors were subject to the death penalty in a majority of states where the death penalty is practiced.



newsbatch.com