What exactly are taxes?

Taxes are “a compulsory contribution to state revenue, levied by the government on workers’ income and business profits or added to the cost of some goods, services, and transactions” (dictionary.com). It is true that Americans have never been huge fans of the responsibility to pay taxes. I think everyone can agree that one of the most aggravating feelings is getting a paycheck and knowing that a portion of it has been taken out toward federal income tax. We all want to keep what is earned and ours.

Furthermore, as a whole, many people disagree on what public funds should be spent on. This is especially hard when our country has been experiencing low levels of trust for and in our government.

While taxes may be not only necessary but inevitable, tax cuts have repeatedly shown to be healthy for economic growth throughout our history. Three classic examples include the “Harding-Coolidge tax cuts of the 1920s, the Kennedy-Johnson tax cuts of the 1960s, and the Reagan cuts of the 1980s”.

With upcoming midterm elections on the rise, maintaining federal tax cuts is something that many people should strongly consider, especially middle class Americans. The idea of federal tax cuts is an important issue debated in current elections. Tax cuts should be maintained because they create jobs, helping to reduce unemployment rates and support a healthy stock market; these factors are significant in order for our country to prosper as a unit.

There are several major components that build a strong and efficient economy.

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Jobs and low unemployment rates are two components that define the status of our country’s economy. Unemployment rates are currently at the lowest that they have been in several decades. President Donald Trump signed the Tax Cuts and Jobs Act on December 22, 2017, cutting the corporate tax rate from thirty-five to twenty percent . In fact, he claims that congress will vote for a tax cut for middle-class Americans at around a ten percent reduction rate after midterm elections. One of the most cost-effective methods to skyrocket job opportunities is through payroll tax cuts, owing to the fact that they lower the cost of labor. These types of cuts are accomplished by a few different ways. First off, well-known companies with likable goods/products may use tax savings to hire more employees.

Also, some businesses may buy more products to benefit their manufacturers through tax saving money. On the other hand, other companies may utilize tax savings in order to reduce prices. Thus, increasing demand, leading to the hiring of new workers. Lastly, some companies may use the cuts to raise wages to keep skilled workers whom will spend more and increase demand. Even though tax cuts provide only a temporary increase in economic growth, it is an immediate boost that has proven to be productive. Stability is an element of our economy that we strive to achieve. Tax reductions support and drive consumer confidence. Consumer spending insinuates about sixty-eight percent of economic growth. Income tax cuts prompt demand by means of putting more money into people’s, consumers, pockets. However, the most