Income Taxation Essay Sample

Income Taxation Essay Sample

… The package that would reduce taxes on corporate dividends, add tax write-offs for corporations investing in plants and equipment and increase limit on retirement premiums would reduce tax revenues from corporate as well as individual income. This plan, which reflects a supply-side approach to the economy, is supportive of capital accumulation. The succeeding paragraphs describe what mercantilists, Jean Baptiste Say and John Maynard Keynes would say about the issue.
The mercantilists, who gained fame in past centuries, believed that the nation is an individual merchant and its wealth came from accumulating gold and silver and maximizing …

… by limiting imports through tariffs and subsidizing exports. Like a merchant, the state sought to enrich itself. From the point of view of a 16th century or a 17th century mercantilist, the White House package would not be a sound policy. The tax cuts on corporate income and deferred taxation on individual income by raising the limit on retirement premiums would reduce government, hence government wealth. However, a modern mercantilist might redefine a nations wealth to mean national output. In the age of free trade and capitalism, therefore, this is a good policy. Adding tax-write offs to corporations …

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