Question
1. In “The Freedom Agenda, Senator Mike Lee Describes Perpetual deficit spending as a form of taxation without representation. Please fully explain how perpetual deficit spending may constitute a form of taxation without representation.
2. Irene Rubin refers uses the term revenue politics Please fully explain how the political nature of governmental action that raise taxes. Please include an explanation of the general opposition to tax increase and the political strategies employed by those seeking to increase taxes to overcome that general opposition.
3. Please fully explain how and why referendum are used strategically to affect state and local tax policy.
4. In the freedom Agenda, Senator Mike Lee describes 5 political influences/conditions that contribute reckless…perceptual deficit spending policies and actions of the United States Congress. Please concisely explain each of these influences/condition
Sample paper
Freedom agenda
Question 1
For countries to succeed as well as effectively distribute and utilize resources, they need to have an appropriate and applicable budget that helps to match the resources and expenses of a country. Notably, most countries have been using deficit spending to control the taxes and economic growth of their countries. Therefore, it is correct to say that deficit spending is not an accident considering that the president with the help of the Congress intentionally creates it in each fiscal year’s budget. Deficit spending largely occurs when the purchases of a country or an organization exceeds the income of the same. Deficit spending often occurs to individuals and business but can also be used by governments as a weapon to control the taxes of a country. Notably, when there is a deficit spending the government often increases the taxes to try and meet the expenses. However, these taxes constitute a taxation system without representation considering that the government often overtaxes the common citizen (United States, 2012).
Question 2
The study of economics in a country helps in establishing the relationship between politics and revenue in a country. Notably, there is a close relationship between the politics of a country. During the election period, the politicians often make high and expensive promises to the common citizen to capture the hotly contested political seats. However, when they get into the office, they are forced to raises the taxes on the people to meet their promises and deliver quality services to the common citizen. However, most people are often opposed to the tax increase bearing in mind that tax increase continues to make the poor people poorer and the rich richer thus increasing inequality as well as the gap between the richer and the poor (Bourne, Knox, & Centre for Policy Studies, 2012). On the other hand, those in power and with the intention of increasing taxes often argue that the increased tax is meant to increase government spending which in turn improves the lives of the common citizen.
Question 3
For centuries and decades, countries and organizations have been using the referendum to pass or to oppose laws, rules, and regulations in a country when they feel that these laws are oppressive or unconstitutional. A referendum comprises of activities that promote a direct vote in which the entire population of registered voters is invited to vote regarding a proposal. In most cases, referendum leads to the adoption or rejection of a new law. Therefore, the electorate has the power to accept or reject a proposal. Therefore, through their voting powers and rights, the electorate can either accept and adapt tax policies that they feel they represent their concerns and issues while at the same time they can reject these policies. This means that those who feel that some of the laws passed in a country are oppressive; they can strategically use the referendum, campaign and convince people to vote against such rules (Bourne, Knox, & Centre for Policy Studies, 2012). This gives the electorate the power and ability control their lives while at the same time influence some of the major decisions made by their leaders.
Question 4
According to Senator Mike Lee, five major political conditions substantially contribute to the perpetual budget deficit. Some of these reasons include but limited to high levels of tax avoidance and tax evasion. Through tax avoidance and evasion, politicians and common citizens take advantage of tax loop-holes and tax reliefs by submitting low taxes. Moreover, high levels of income and wealth inequality have also been found to substantially affect the level of taxes and revenue collected in a country (United States, 2012). Additionally, domestic pressures, government inefficiencies, as well as high levels government subsidy, have significantly lead to budget deficits as governments spend more to finance activities than it earns.
References
Bourne, R., Knox, T., & Centre for Policy Studies. (2012). A distorted debate: The need for clarity on debat, defict and coalition aims. London: Centre for Policy Studies.
United States. (2012). Providing for consideration of the bill (H.R. 3581) to amend the Balanced Budget and Emergency Deficit Control Act of 1985 to increase transparency in Federal budgeting, and for other purposes: Report (to accompany H. Res. 539). Washington, D.C.: U.S. G.P.O.
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