Taxation and Spending Essay

Taxation and Spending Essay


Taxation, spending and public policy are highly attached to each other. In the US the budgetary committees hold a discussion on matters of who gains what and how. The US Congress indicates the fact that every public policy is under the enactment of a debater. Taxation and spending at times lead to division, that is, between the republicans and the democrats for their different opinions. Also, the wealthy gains more and hence highly and easily influence the state and the government. If the state raises tax during a recession, it may end up losing funds when it resumes from the recession. However, public policy may influence the tax and spending policies; this is due to some policies need votes and percentages of the majority.

Taxation and spending cause the difference between the republicans and the democrats in the budgetary process (Reed, 2006). For instance, Schwarneeger raised a proposal of filling the gap of private airplanes and yachts. By doing this, the project would have raised quite a lot of money, $21 million which was higher than what the state needed $16 million.

The rich people gain more from different incomes, and this includes; bonuses, stock options, and capital gains. Therefore, in California, if the market falls precipitously it could lead to the decline of prosperity in California drastically. This is as a result of, approximately one percent of the earners, roughly pays half the income tax. Cases of inequality in income distribution. The increase in income tax for an individual leads to a reduction of inequity. Therefore, the higher share of the Gross Domestic Product (GDP) acquired from people tends to have a positive impact on the income distribution as well. Also, spending tends to have a higher GDP share in relation to social amenities such as health, education, and housing which bring about a positive impact on mass or individual distribution of income. Most states on 2009 raised taxes during recession and by so doing they experienced opposite results. They collect an amount of $787 billion which was used to boost the economic growth; the government spent $246 billion on expenditures.  This idea was not very beneficial because as of 2010 the money started to go down and the economy resumed to full recovery. Taxation efficiency and inefficiency are demonstrated by the rate by which the taxation level impacts the level of collection of the budget revenue and tax avoidance directly (Starling, 2010).

Public policy may have an effect on taxes in that; it may trigger blockage when the two third rule of the majority vote did not adhere. For instance, the cutting of prison’s expenditure not counted for nearly ten percent was apparently impossible in the California budget due to the guard union authority in prisons. According to Starling (2010) public policies, tend to restrict the state’s expenditure. It nearly seems impossible, to create a balanced budget through the cutting of the state’s expenditure, example, basing on the 2001 recession in the US.

The States should, therefore, avoid increasing tax during a recession and instead develop other better methods of raising revenues such as charging members of the public involved in accidents or other forms of misconduct. Also, every member of the public should participate in making the taxation policies. The participation facilitates fairness among members of the public and the state. For a government to avoid inequity, spending should be evenly distributed, therefore, avoiding split opinions between the republicans and the democrats.





Reed, W. R. (2006). Democrats, Republicans, and taxes: Evidence that political parties matter. Journal of Public Economics, 90(4), 725-750.


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Less Than Satisfactory
70.0 %Content
30.0 % Summarizes Articles Fails to provide summary of either article. Summary is significantly lacking relevant information. Provides summary of relevant information of only one article. Summary meets requirements for both articles, but additional information would improve summary. Provides a thorough summary of relevant information in both articles. 0/0
40.0 % Examines how taxation and spending impact public policy and vice versa Fails to examine how taxation and spending impact public policy and vice versa. Examination is significantly lacking and evidence of application of article contents is not clear. Examination is accurate, but is missing some key components of reasoning the impact of taxation and spending on public policy and vice versa. Very little application and reference of article content is evident. Examination of how taxation and spending impact public policy and vice versa meets all requirements, but could be improved with additional elaboration and references to article. Provides a thorough examination of how taxation and spending impact public policy and vice versa. Examination clearly applies and incorporates article content in examination and reasoning. 0/0
20.0 %Organization and Effectiveness
7.0 % Thesis Development and Purpose Paper lacks any discernible overall purpose or organizing claim. Thesis and/or main claim are insufficiently developed and/or vague; purpose is not clear. Thesis and/or main claim are apparent and appropriate to purpose. Thesis and/or main claim are clear and forecast the development of the paper. It is descriptive and reflective of the arguments and appropriate to the purpose. Thesis and/or main claim are comprehensive. The essence of the paper is contained within the thesis. Thesis statement makes the purpose of the paper clear. 0/0
8.0 % Argument Logic and Construction Statement of purpose is not justified by the conclusion. The conclusion does not support the claim made. Argument is incoherent and uses noncredible sources. Sufficient justification of claims is lacking. Argument lacks consistent unity. There are obvious flaws in the logic. Some sources have questionable credibility. Argument is orderly, but may have a few inconsistencies. The argument presents minimal justification of claims. Argument logically, but not thoroughly, supports the purpose. Sources used are credible. Introduction and conclusion bracket the thesis. Argument shows logical progressions. Techniques of argumentation are evident. There is a smooth progression of claims from introduction to conclusion. Most sources are authoritative. Clear and convincing argument that presents a persuasive claim in a distinctive and compelling manner. All sources are authoritative. 0/0
5.0 % Mechanics of Writing (includes spelling, punctuation, grammar, language use) Surface errors are pervasive enough that they impede communication of meaning. Inappropriate word choice and/or sentence construction are used. Frequent and repetitive mechanical errors distract the reader. Inconsistencies in language choice (register), sentence structure, and/or word choice are present. Some mechanical errors or typos are present, but are not overly distracting to the reader. Correct sentence structure and audience-appropriate language are used. Prose is largely free of mechanical errors, although a few may be present. A variety of sentence structures and effective figures of speech are used. Writer is clearly in command of standard, written, academic English. 0/0
10.0 %Format
5.0 % Paper Format (Use of appropriate style for the major and assignment) Template is not used appropriately or documentation format is rarely followed correctly. Appropriate template is used, but some elements are missing or mistaken. A lack of control with formatting is apparent. Appropriate template is used. Formatting is correct, although some minor errors may be present. Appropriate template is fully used. There are virtually no errors in formatting style. All format elements are correct. 0/0
5.0 % Research Citations (In-text citations for paraphrasing and direct quotes, and reference page listing and formatting, as appropriate to assignment and style) No reference page is included. No citations are used. Reference page is present. Citations are inconsistently used. Reference page is included and lists sources used in the paper. Sources are appropriately documented, although some errors may be present. Reference page is present and fully inclusive of all cited sources. Documentation is appropriate and citation style is usually correct. In-text citations and a reference page are complete and correct. The documentation of cited sources is free of error.




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