In the United States, taxes are imposed at the federal, state, and local level. These taxes include: income, property, sales, imports, payroll, estates and gifts, as well as various fees. Taxes are imposed based on the net income of individuals and corporations.
The issue of taxes is common among debates between the two political parties. The issue is usually a hot topic during any election. Republicans support tax cuts for everyone. This would include both the rich, and the poor. On the other hand, Democrats are supportive of an increase in taxes on the wealthy. The extra income of tax money could go towards funding for public programs. One thing that both parties can agree upon is that the system of taxation in the United States should be reformed.
The Republicans believe that taxes should be cut in order to stimulate the economy and help families. The tax brackets would be altered in a way that all taxpayers would benefit, but low-income workers would be targeted. The belief is that tax cuts and low interest rates could lead to higher rates of home ownership. Low interest rates open up more housing opportunities than any government program. Affordable housing would be in the national interest. Also, the Republican Party is in favor of repealing the death tax, and giving tax breaks to care for the elderly. The Democrat Party is in favor of cutting taxes for the middle class, but not the wealthy. Also, they are in favor of cutting taxes for working families, but not the richest percentile.
A recent example of tax reform in the United States would be the tax cuts made during the presidency of George W. Bush. The two tax cuts are the Economic Growth and Tax Relief Reconciliation Act of 2001 and the Jobs and Growth Tax Relief Reconciliation Act of 2003. Both of these acts generally lowered tax rates and revised the code specifying taxation in the United States.