Confusing taxes

This week in Econ class we learned about how the government fits into a free market economy and about taxes.

Everybody loves taxes

Except for the people who pay them.

But the American tax system is very confusing.

A lot of people want to change it to make it easier, but it is hard to figure out which way would be the best.

The 4 main tax bases are sales tax (tax on stuff you buy), individual income tax (tax on the money you make), corporate income tax (tax on the amount a business makes), and property tax (tax on what your land is worth).
 
There are 3 different kinds of taxes on those things though: Progressive, Regressive, and Flat
Progressive taxes mean the poorer people pay a lower percent and the richer pay a higher percent.
Regressive taxes mean the poor pay a higher percent and the rich pay a lower percent. (why they even came up with that idea is stupid)
Flat taxes mean that everybody pays the same percent.


For the most part the US has a progressive tax. But there are so many loopholes for the rich to lower the percentage they have to pay they almost never pay the normal amount they'd owe.

Many people want to remove many loopholes and extremely simplify the way taxes work in our country. I think this would be good to do but we would need a system that benefits everyone.
We can't tax the poor too much and can't leave too many loopholes for the rich.

Always remember!

THE+I.R.S.=THEIRS

Sigh..... Walmart......

Weserville is facing a tough situation. The town council today agreed to let Walmart build a store in our little town. We have to pay for larger roads, new stoplights, and relocating the Dandy Mini-Mart. The Mini-Mart is going to go out of business anyway if the Walmart comes in.

The majority of the town was against having the Walmart. We could see the negative effects of the Walmart and knew it would be better for our town.
just saying...

Walmart Co. got away with only a 20% property tax instead of the standard 25%. They marched into the town hall meeting and demanded ridiculous conditions we would have to meet for them to come to town.
It is a very bad idea to let Walmart build in our little town. The neighboring town wanted to get one anyways. They could have dealt with most of the negative things and if we need to go the Walmart it would be easier to drive to the next town than driving 2 hours.

This almost guarantees that no small businesses will be able to open up in Weserville. GIIERU's plans of helping small businesses grow larger to help the economy of Weserville won't be able to happen either. Poverty will go up and so will unemployment. Even if it creates jobs it will cancel out the opportunity for many many more.

If only the mayor had made it a majority vote from the citizens...

                                                                           -A concerned citizen of Weserville

PINK FLAMINGOS

We won't stop

Free Enterprise System

So after about 2 hours searching for a good article about economy I decided just to do a reflection blog about what we did in Econ class this week.

We learned about the Free enterprise system and how money and resources are transferred through the economy. The free enterprise system is a system of economy that allows anyone to set up a business. There are 4 parts of a basic free enterprise economy. The Households (people), Businesses, Factor Market, and Product Market. Economists use a circular flow model to show how resources and money get traded between businesses and people.

Money flows from Businesses to Households through the Factor Market, and back to Businesses though the Product Market.

                   Products

                 /               \

               /                   \

Businesses                 Households <-----  Money goes counter-

              \                    /                                            clockwise

                \                 /

                    Factors


Businesses pay the Households for their resources needed to make products.
The Households pay the Businesses in return for the products they make with the resources.

                   Products

                 /               \

               /                   \

Businesses                 Households <-----  Resources go clockwise

              \                    /                                           

                \                 /

                    Factors

Another key part of free enterprise is that people can enter freely into contracts with other people. They will only accept the trade if they feel that they will make a profit off of the deal. This is called the profit motive. People and businesses will try their hardest to get the most profit from the resources or goods they have to sell.

Marx Was Right

Mohamed A. El-Erian wrote the article, Inequality: America's great destroyer, on January 29, 2014. It is published on cnn.com The increase in the gap between the rich and the poor of America is explained.

There are 3 kinds of inequality that are present in the US today. The inequalities of income, wealth, and opportunities. Not only are the people with more money making more money, they have even more opportunities to make money. The rich are becoming richer and the poor are becoming poorer. This unbalance is hurting overall economic growth and the creation of jobs.
This is one of the things Karl Marx feared about free market economies. He said that the rich will become richer and the poor will become poorer if the individuals of a nation were allowed to run the economy.

This is a problem in our economic system today and people should attempt to fix it. I do not think that we can solve this problem by taking money from the rich and giving it to the poor but we should make sure people have access to education. The poorer people also need to have opportunities to earn money though. If the rich get all the opportunities to earn money and the poor don't how can they become not as poor? The more people that have the opportunities to start gaining money for themselves the better our economy will grow.

HELLO PEOPLE

that's all i have to say for now

THE END