Research Paper on Government Spending

Research Paper on Government Spending

Government spending is a debatable topic especially under the current pressure of the financial crisis. If you are writing a research paper on government spending, you should not ignore the opportunity you have to impress your teacher with depth of research and professional approach to writing.  Nevertheless, not every student is a good writer not because he does not write to devote enough time to writing but rather because it is almost impossible to keep up with all writing assignments. We offer the following solutions: 1) free research paper blog and 2) custom research paper writing service.  Custom research papers are fully referenced and written from scratch by professional and educated essay writers.

Free Sample Research Paper on Government Spending

Another problem raised by government spending is taxes. Our Federal tax policy in practice has been dominated by expediency and opportunism, and in principle by considerations of equity alone. This has resulted in the fact that Federal taxes have been adopted to meet the requirements of immediate problems. The discussions concerning equity have related to the fairness of this or that tax as if the taxes involved existed in a vacuum. National economic policy requires that Federal taxing methods be incorporated into the policy of which spending is a part.

It has indeed been argued that if business recovery and reemployment necessitate an unbalanced budget, the objective could be reached by reducing taxes as well as by increasing expenditures. This view, however, overlooks the fact that depression conditions force additional expenditures and that the question of the volume of deficit spending cannot be separated from the question of the objects of expenditure.

Spending policy requires that tax policy be adapted along lines which harmonize with the basic concepts behind the spending program. Just as government spending is intended to increase the total of all spending throughout the economy, in the same way taxes should curtail the total of spending as little as possible. In short, the revenue requirement of the Treasury should be a secondary goal of a tax system. Broadly speaking, taxes do not reduce total spending, because the tax revenues which are taken from the spending of private individuals are added to the spending of the government. But some taxes are deductions from the savings of individuals, and in their cases, the fact that the government spends these savings means that the total of spending is increased, instead of merely being redistributed. Taxes on the incomes of persons and of corporations represent in large part the taxing of funds which otherwise would be saved, that is, not currently spent for commodities or services during periods of economic retardation. Taxes on commodities are in large part taxes on current spending. During the 1930's the Federal Government drew more revenue from taxes on commodities than from its taxes on income. In other words Federal taxes had the effect, preponderantly, of reducing private consumption rather than of reducing saving. The Social Security tax on wages is a case in point.

Since national policy requires more consumption and relatively less saving, taxes ought to weigh more heavily on savings, particularly on the undistributed earnings of corporations, and less severely on consumption. The best practical means of achieving this end is to increase the proportion of revenue obtained from the income taxes and to diminish the share got from consumption taxes.