economics...chapter blogs

Thursday, February 22, 2007

Chapter Four Media Article:

Name Of Article: Lane County Commissioners enact income tax

Address: http://www.kmtr.com/news/local/story.aspx?content_id=d9ba114e-c333-4b05-a51b-9677e222fe05&rss=191

Summary:

Commissioners say the income tax is necessary to maintain the County’s current public safety service levels in the trail of the expiration of the federal payments to counties program or Secure Rural Schools. In a 3 to 2 vote, the result turned out to impose the tax on personal, non-resident and business income beginning July 1, 2007, raising $32.5 million. They all together approved a motion directing county staff to prepare a proposed charter amendment that would cap the income tax and dedicate revenues to public safety. The charter amendment would likely be referred to voters in the November election. The income tax regualtion is dedicated to maintaining public safety services including adult and youth corrections, crime prevention, detention, supervision, patrol, mental health and crime victim services, and alcohol and drug treatment. The income tax will be reduced if the federal Secure Rural Schools funding is replaced by June 1. After June 1, if Congress provides funding, the Board would hold a hearing and decide how much to reduce the tax rate. The regulation also offer 60 percent of property tax revenues for public safety purposes as part of the effort to stabilize the public safety system with two funding sources. In addition, the Board dedicated 2.2 percent of Lane County’s current property tax revenue, or about $650,000, be devoted for extension services and 0.7 percent, or $205,000, dedicated to stabilize funding for veterans services.


Relate to Chapter:

As we are taught in chapter four, everyone has to pay income tax but it depends on how much they need to pay. If some of the people has high income, they would need to pay more than the people who have less income. For people who earn less than ten thousand, they pay far less than the people who earn more. The income tax, taken from the government, are used for the different categories that they would spend it on. For example, they would spend it on maintaining public safety services including adult and youth corrections, crime prevention, detention, supervision, patrol, mental health and crime victim services, and alcohol and drug treatment. They spend most of the income tax that they collect from the citizen to try to improve different goods and services provided to us. The disadvantage of increasing the income tax rate is that the people who have low income wouldn't be able to afford to pay the income tax. It's impossible for the people who only earn less than 10,000 dollars a month to pay the income tax. For the people who earn a high amount, it wouldn't be a problem for them to pay it but some would not agree to increase the income tax.

Personal Reflection:

I think the government should not raise the income tax. Its impossible for the poor to afford paying the income tax. Even if they would reduce the income tax rate after the federal Secure Rural Schools funding is replaced, its not known when this will happen or not. If it doesn't the poor people would have to continue to pay high income tax rate. If this continues, the poor people would not be able to afford it. They should set a date on when they will reduce the income tax rate. Also they could get fundings from the Congress to support what the government is improving services on different areas. These two ways can help the government not to raise the income tax rate.

1 Comments:

Blogger Apple Z said...

Income tax takes a big portion of government's revenue. It's is clear important that for citizens pay for income tax, so that governments can use this money to improve the whole society's living standard. More resent, government is proposing to reduce income tax by 10% which will create a significance change of our every month income. You mentioned that it's hard for lower income people to pay the tax. I agree with that, even though, they still have to pay for it. What i think may be helpful to this situation is decrease the income tax for poor people and increase the tax for high income people, so that we can make the income gap smaller. Meanwhile, decrease income tax is not a proper way to help out poverty.


J Zhong

9:14 PM  

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