Taxation is the primary source of revenue for federal, local, and state governments in the United States. There are different types of taxes that are common in this country, including those imposed on property, payroll, gifts, estates, transfers, import and export goods, and sales. The total revenues collected in the country amounts to over 20 percent of gross domestic product (GDP). The purpose of this paper is to examine the unique benefits of federal and state taxes and propose a new model whereby one of the two is abolished.
Benefits: State and Federal Taxes
The American Constitution supports the government’s decision to tax its people since this practice has several benefits. The first one is that it allows different agencies and institutions that are useful in governing a state or country to run smoothly. Such agencies acquire adequate financial resources to achieve their potential (Casselman & Tankersley, 2019). The second benefit is that the operations of various security and criminal justice systems require taxes in an attempt to pursue their objectives.
The third advantage of both taxes is that they empower governments to redistribute the available national and state wealth evenly in the targeted regions. Consequently, the model makes it possible for those in leadership positions to meet the needs of the poor. The fourth one is that specific goods can be taxed to reduce consumption levels, such as cigarettes and alcohol (Infanti, 2018).
Fifthly, the federal and state governments would require such revenues to launch and support specific projects that can address the challenges the identified population or community faces. From these attributes, it is agreeable that taxes are beneficial in every state. This is true since they present new opportunities for governments to operate smoothly and deliver the intended services and support to the targeted people.
Doing Away with State Taxes
American states have unique taxation systems that allow them to acquire adequate revenues for supporting various government functions. The presence of income tax in different regions makes it possible for public programs to emerge successfully. It is also essential for delivering high-quality education to the people, developing infrastructure, and meeting the demands of the population. However, the decision to do away with state taxes is a plausible idea that many stakeholders continue to analyze from different angles or perspectives (Casselman & Tankersley, 2019). Such a move is beneficial since it will create a situation whereby there is no tax duplication.
This is the case since income tax will be implemented at the federal level. Many people will not have to file two or more returns (Casselman & Tankersley, 2019). Currently, the existence of state income tax forces citizens to complete several paperwork procedures. In the recent past, many citizens have been forced to move from state A to B in an attempt to avoid regions with heavy taxes. This remains the case since there are no uniform taxation policies across the states.
When different stakeholders and policymakers implement such a move, chances are high that more people will find it easier to pursue their economic goals. The current levels of duplication will be addressed. Similarly, many Americans might not have to relocate due to the issue of income tax. This is also the same case for the taxation areas, including gifts, property, transactions, and goods. This approach can also become a new opportunity for the federal government to distribute resources and projects evenly across the country (Casselman & Tankersley, 2019). This strategy will ensure that some states are not disadvantaged than others. It will also create a situation whereby Americans are not burdened by this issue of taxation.
Supporting a Federal Tax
The current system is that American citizens are taxed at both the state and federal levels. This kind of arrangement makes it possible for different governments to function effectively and pursue their goals. The result is that majority of the citizens can receive timely services, such as healthcare, security, and education (Casselman & Tankersley, 2019). Such funds are essential since they support the military and make it easier for it to protect the country’s borders and critical infrastructures. However, the idea of doing away with a state tax and promoting a federal one is a move that requires the support of all stakeholders.
Different policymakers should examine the benefits of a single federal tax system and compare it with the issues arising from the presence of state taxes (Smith, 2015). The resolutions made will guide more people to focus on the best outcomes and how to improve the experiences of all people. Citizens can also engage in advocacy and policy formulation in an attempt to compel the government to consider a scenario whereby only a federal tax system is put in place. Unless all stakeholders are involved, chances are high that Americans will continue to be taxed at both the national and state levels.
A Federal Tax System
The promotion of a federal tax in the United States is a positive move that can transform the experiences of the greatest number of citizens and government agencies. Firstly, such a move will create a scenario whereby Americans will not be overburdened by the current two-tier system (Infanti, 2018). More individuals will find it easier to file their returns and get adequate time to pursue their economic goals. Chances of errors and lawsuits will reduce significantly in this country. Secondly, a single federal tax will create a sense of harmony since many states have diverse systems that tend to have significant impacts on the lives and outcomes of their respective dwellers. This achievement will ensure that Americans are satisfied with the system and will not have to consider relocating to other states.
Thirdly, a federal tax system is an evidence-based model that will ensure that the government supports states evenly depending on the targeted beneficiaries and the number of citizens in need of different services. Such a move will create a scenario whereby the country is capable of realizing its economic goals. Fourthly, this decision will minimize cases of theft and mismanagement of resources at the state or local level (Smith, 2015). This is a clear indication that the proposed system will maximize the level of transparency and ensure that all funds are utilized effectively to meet the demands of the greatest number of citizens.
Most of the government functions are supported by the national government, such as security, military, health, and education. Although different states have been empowered to have specific policies and guidelines for such systems, the promotion of a federal tax will ensure that the central government is capable of streamlining these services and delivering high-quality services to all citizens (Infanti, 2018). With such a model in place, chances are high that the United States will be able to achieve its goals and present the best opportunities to its people.
From the above discussions, it is evident that the government of America will be able to achieve most of its goals by abolishing state taxes and promoting federal taxes. Such a decision will remove duplication and reduce the percentage of tax evaders. This approach will be sustainable and capable of meeting the needs of more citizens (Casselman & Tankersley, 2019). Cases of fraud and corruption will reduce significantly since the processes will be streamlined.
The government will provide uniform guidelines and policies that can ensure that adequate revenues are acquired from the taxation system (Smith, 2015). Consequently, it will fund all key projects and make sure that the needs of different populations across the country are met. These achievements will support different government functions and empower more citizens to achieve their potential.
Conclusion
The above discussion has supported the implementation of taxes since they provide enough revenues to the government, thereby empowering it to pursue its objectives and deliver high-quality services to its people. The United States’ model creates a situation whereby citizens are taxed at both the state and national levels. The outlined arguments encourage different stakeholders to engage in policymakers in an attempt to support a single federal tax system. This achievement will get rid of state taxes and address the major weaknesses and challenges associated with them. In conclusion, such a decision will make it possible for this country to achieve its economic aims and distribute resources evenly.
References
Casselman, B., & Tankersley, J. (2019). Face it: You (probably) got a tax cut. The New York Times. Web.
Infanti, A. C. (2018). Our selfish tax laws: Toward tax reform that mirrors our better selves. Cambridge, MA: The MIT Press.
Smith, S. (2015). Taxation: A very short introduction. New York, NY: Oxford University Press.