Opportunities for Reforming the Taxation System Today


Without a shadow of doubt, tax reforms are now warranted in America. The current tax regulations were enacted over the past fifty years. However, it is important to appreciate that the economy of the country has changed significantly since then. It is important to introduce tax regulations which reflect the current changes in America. The tax regime which is required in the country ought to be fair and transparent. By introducing the reforms, the people will be required to pay lower and lesser taxes. Accordingly, the costs of operating a business in the country will be reduced by leaps and bounds.

When the costs of operating a business are reduced, people are more likely to flourish. The tax fairness incentives introduced should always provide with reduced business costs. When reforms are introduced in the tax regime, people will be encouraged to create employment opportunities. In the current America, it has become hard to find employment opportunities. However, improving the tax regime also means creating more employment opportunities since growth will be encouraged. According to research, there are many taxes which are currently cascading. This means that American exports are being penalized today.

The ability of American companies to compete in the international market has been stifled by leaps and bounds. By stifling the ability of companies to compete, the growth of jobs in the country will also be reduced. The new 1031 tax reform ought to be based on various fundamentals. For instance, there is a need to make sure that the new taxes are consistent. It is also important to make sure that the taxes introduced in the country are simple and also certain in laws. There is a need to introduce fair taxes in the taxes.

When the taxes are fair, it is an indication that they are not discriminatory against most of the companies in the country. When comprehensive taxes are enacted, most of the states will get a reliable source of income. In the past, most of the states were forced to rely on revenue sources which are narrowly based. Indeed, some of the means used by states to generate taxes can be described as distorting. The current tax regime has a lot of loopholes which have been shown to impact investment decisions in a bad way. Indeed, the consumer choice of Americans has been highly affected by the unbalanced taxation regulations which are currently operating in the country. Get more facts about tax at http://dictionary.cambridge.org/dictionary/english/tax.