Read the following article and answer these questions in par

Read the following article and answer these questions in paragraph form: 1) 2) 3) What is the article about? How does it relate to Economics, what topic is specifically being discussed? What is your opinion?

Solution

(1). The article is about Taxation and how America is averse to tax raises. The article highlights the importance of tax revenue and government spending to improve the overall quality of life in the country. It also talks about how recent succesive governments have adopted tax cuts to primarily satisfy their voter base.

(2). The topic being discussed is Public finance. Public finance is the role of the government in the economy. The topic being specifically discussed is Taxation.

(3). In my opinion the government plays a key role in the distribution of funds among various groups in order to reduce inequality in the distribution of income. The role of the government also includes public spending in order to improve the overall quality of life of its citizens. Taxation is a source of revenue for the government. Excessive tax cuts leads to budgetary deficit. With the US being the largest economy in the world, one would expect the standard of living index to be high. But there is high inequality of income and a high poverty rate. Proper taxation could eliminate these significant issues and truly make it one of the most advanced nations in the world in all aspects.