The Impact of Lowering Tax Rates on the Lower and Middle-Class Sectors

The aim of this paper is to determine the budgetary limitations and constraints in order to examine the effects of American tax cuts on the lower and middle classes. The expected outcomes of American tax cuts are to increase financial benefits, which is in direct opposition to the real effects of the tax cuts, which are to disadvantage the lower and middle classes. The aim of this paper is to determine if tax cuts are merely rhetoric that jeopardizes lower and middle-class economies by undermining the provision of tax benefits by limiting their economic and social benefits. Research Questions -How do American tax cuts influence the status of the middle and low wage American earners? Does lowering the tax rate help the everyday American with their finances? How does the tax cut encourage or demotivate, and discourage the interests of the lower and middle-class groups?

Intended audience: the paper seeks to incorporate the concerned lower and middles class-wage earners and their families, students transforming to the life of self-sufficiency and anyone who decries the economic disparities. The paper aims to intrigue readers to uphold their popular perception towards the economy. The article also intends to compel its readers to differentiate between the ideological promises from measurable, tangible and numerical outcomes.
Outcomes: the paper intends to shift the attention from the promises to the actual results confined in the legislative rhetoric by diverting the attention to deductive and measurable economic gains from tax cuts. The outcome of the paper will enhance the awareness and shaping of the policymakers to improve the future impacts of the tax cuts.

Sources Review- the study of sources have proved a link of the hazardous nature of tax cuts which were initially intended to ease the financial burdens of the lower and middle-class Americans.

The review by Center of Budgetary and Priorities demonstrates that taxes are supposed to fund education, actions that are designed to encourage the interests of middle and lower class group of American citizens. Besides, the state funding impacts notably to some extent the colleges and universities have to receive state funding from the tax cuts
Tax cuts have damaging implications for the "public higher education system" mostly with an economic downturn and the state's hesitancy to increase supplementary returns.

In support, the investigation of 2001 and 2003 illustrates the legislative breakthroughs from tax cuts that reshaped the nation’s financial scenery.
The "idea of tax cuts" has always been the public preferences contrary to voters' priorities as the prevailing views. The intersection of two forces pulled off from the center the tax policy of American citizens

The political elites increased incentives to encourage and “cater their partisan and ideological bases.”
The politicians’ capacity of who abandoned the middle class increased by escaping the political mandate of accounting for paybacks.
The policymakers always design impressive deliberate policies to deviate and distort the perceptions of the public, to set the "future political agenda" and to minimize backlash of voters.

Ironically, tax cuts have increased tuition fees in education systems that have acted as a burden towards middle and lower class citizens by hindering their economic mobility

Some of the tax cuts impacts have left the middle class behind and instead allowed the policymakers to escape justice as they pretend to help the middle class.

Tax cuts eventually undermine the services that they were designed to provide to aid middle and lower classes.
Tax cuts have been refaced to look like they are established to help middle and lower class families while on the contrary protects the ill-motives and powers of the politicians.

Regardless the contrast, revenue collection has increased while the benefits to the middle and lower class continue to decrease or get minimized.
The best primary measure available at middle class is essential for an economic resource.

Income and shares can be analyzed and their impacts measured considering tax from financial income forms the baseline of the analysis.
The critical outcome should be responding to how the health impacts of tax cuts can be beneficial to lower and middle class involving all other professionals including policymakers, finance experts, and the scholars.

The health benefits from tax cuts are directed to the wealthy Americans instead of the poorest with policies such as the Cadillac tax intended to harm the middle-class citizens.

Health benefits that are based on employment are at times exempted from tax illustrating that, it is the wealthy that benefit most.
If the Cadillac tax gets implemented, it is the middle-class groups that will suffer the most while sparing the wealthy class. It will “reduce private the healthcare benefits” and on contrary raise revenue that will ensure the wealthy are catered for on their interests.
Tax Morale gets influenced by revenue progressivity although the motivation decreases with income illustrating flaws of tax reduction policy.
Subsidies are calculated and discovered to be the lowest in the lower class.
Tax code seems to be progressive and making it more progressive won’t help. Instead, income tax rates levels should be raised and reduce corporate taxes.

Tax reforms intend to squeeze the middle class in various scenarios. Plans of establishing fewer brackets and lower tax rates consequently hurt the middle class with the government forced to collect revenue from elsewhere through getting rid of mortgage interests and even 401.

Helping the middles class through cutting taxes is "healthy," but it contrasts the governmental sources of revenues that are necessary for operations of the government.

Information collection plan: to collect information through scholarly resources from credible databases and to use statistical economic data. The scholarly sources will include policy, financial and economic journals as well as the Google Scholar databases. The paper intends to use papers that were published 2010 and after.
Anticipated challenges: one of the expected challenges is the identification of causative variables among the tax policies and the economic impacts which tend to be correlational. The implications of tax reduction benefits to mortgage, education, health, social services may be correlated to some extent. It is difficult to measure or scale the direct impacts or effects in a given multi-pronged economies, the influence of consumer spending and has implications for corporate expenditures. Lastly, the challenge of the prevailing assumptions that tax increases the benefits to the rich which it undermines the poor and the middle class. It's challenging to untie these assumptions as tax cuts maybe economically and socially decisive to the middle and lower levels.

Works Cited