When compared to the Bush tax cuts, it appears that the latter does not pose a sound tax system. Although at the moment, the U.S. government may boast of budget surplus, later on, if fiscal policies today are continued in the future, this system will result to huge escalating deficits which might be unsustainable because when the baby boom generation retires a few decades from now, government's expenditure on retirement and health benefits such as Social Security, Medicare and Medicaid will increase significantly, to the prejudice of the country's future. A growing imbalance will exist between the revenue raised and the expenditures (GAO 2005).
The present tax code can also be said to be burdensome on the part of the taxpayers, on the aspect of compliance. The complex procedure involved in the accounting appears to be far more serious that it should be. Hence, the government, through its defective tax system, hinders the growth of its economy and its constituents .
From a critical view of an ordinary income earner, there seems to be a big inclination to favor the big income earners as opposed to the lowly income earners. Thus, theoretical justice is not achieved. ...Show more