What is Helicopter Money?

By: Alexandria Pendergast

Helicopter Money is a policy made by the government, so help distribute money after they print new money. How they distribute it, is by giving it directly to the public. It is also used through tax rebates. They will give tax rebates to the public so that they receive more money, though this is a more roundabout way to do it. So if you get a higher tax return or a tax rebate, it is how the government is trying to give the public more money in their pockets.

Student Loan’s

By: Alexandria Pendergast

Student loans is a major issue in the United States. The problem is how people have to pay back student loans, it is causing massive amounts of debt in the people who go to college. Now there are two types of student loans private student loans and federal student loans. So unlike federal student loans, private student loans are through companies like Capital One. These are usually gained through applying for a loan, just like any other loan through a bank, you need all your pertinent information and a co-signer. There are some differences between private and federal loans, but the main one is their interest rate. All federal student loans have a fixed interest rate which Congress sets the interest rate every award year. While private student loans interest rates are all over the place depending on cred score and companies. So the main problem with federal and private student loans is the repayment options. With international students, once they leave the country, its impossible to track them down and get them to repay student loans. So many dollars are wasted on international students who just leave the country and leave all that debt behind. This is only in certain countries that are coming here. Now local students still have problems with repaying student loans, they end up paying thousands of dollars just in interest. Also if they lose their job or can’t pay back then their loan will go into default. This makes are so they rack up 10s of thousands of dollars in debt. The reason this happens is that the federal government outsources their federal loans to private companies. These private companies are the reason the interested and default are so high if something happens. So this is one thing I have learned as a student, do not default or else you will pay significantly more on student loans than you ever thought possible. This is a major issue that many people in the United States face today.

The Problem with the Public

By: Alexandria Pendergast

The Public of the United States of America, really have a lot of problems when it comes to voting. That is because many don’t care about the policies but only the party that supports the policy.  The United States has become a bipolar system. This is not what the founders had intended, because they felt like the party system was evil by nature. If you look at the federalist papers, their opinions are heavily talked about in those papers. They are used as reference in many cases to help determine the intention of the founders. The founders felt that the American government had no place for the party system. This is in part because of how the British party system worked. They hated many aspects of the British government and created this government in part to help fix the many issues they found at fault under their previous government. The party system was ironically created shortly after the creation of the government by John Adams and Thomas Jefferson, who agreed on very little. This creation of the party system has caused a division in the country through this bipolar system. This division has been splitting the country more and more until this current election with Bernie Sanders and Donald Trump. These are the extremists on both sides of the spectrum and are rallying many people under these two banners. While Bernie Sanders is not winning the election he is following in close behind Hillary Clinton. Bernie Sanders is a very hard core liberal and so are those who rally behind him. While Donald Trump is debatable, but with his speaking style he is rallying many hard core conservatives behind him. People are not really following what policies the republican and democratic party stand for, only what they perceive as their representative’s party platform. The political system is no longer about what exact vote people like, but which representative they like and what their representative approves of. The public has become very uneducated about the bills passed in their local Government. That is what I feel is wrong with the public, the party system. It has caused the public to become more uneducated about actual issues going on in their local area. I saw it during the Hillary Clinton rally, because when she spoke about local issues that people should know about, no one had a single clue what she was talking about. Someone who wasn’t from the area knew more about local issues than the locals. People need to actually read about the local issues and why they are important to them. Once people start doing that, I believe the party system will fall apart into smaller divisions and the government would be healthier overall.

Taxes vs Flat Tax

By: Alexandria Pendergast

What is a flat tax? So many people think that a flat tax will cause the poor to pay even more in taxes. That is false. Based on the huffington post article, the average American pays around 10 percent in taxes, and the poor pay higher than that currently. That is because of a trickle down style of taxes, each tax bracket causes an increase amount you pay in taxes. The United States has a Progressive tax, which means as someone’s income increase the taxes they have to pay will increase. Say someone goes from making 9,000 a year and have to pay 10 percent in taxes to making 10,000 dollars a year and must pay 15 percent in taxes. That is how the bracket system works, but then they add deductibles to your taxes to make you pay less. You can get tax exemptions if you are Single, Maried Filing Jointly, Head of Household, and personal exemption, to name a few. Now the PEP and Pease are two provisions in the tax code that will increase taxes for high-income earners. Once a single person makes 259,00 dollars, married filing jointly makes 311,300 dollars, or head of household makes 285,350 dollars, these two provision will apply. Let us make taxes get more complicated with the alternative minimum tax. This tax was created in the 1960s and has not been adjusted for inflation. This was raised in 2013 so the middle class was not hit by this tax, since it was created for the richer individuals. This is another layer of taxes added to your bill. Then when you look at your paycheck you have the earned income tax credit. Now to counter this overly complicated taxes, big companies and richer individuals will get government subsidies to pay less money on taxes. These subsidies are and tax exemptions are used to decrease the percentage to the richer paying less than 1 percent of their income on taxes. These subsidies the problem with the tax system, otherwise the rich would get taxed more than the poor, like it was intended to do. Subsidies are even more complicated I will cover it in a later article. Subsidies though decrease the amount of taxes an individual or company needs to pay.

The way I would counter this would be with a Flat Tax, and the removal of subsidies. A Flat Tax is when everyone in the country pay’s the same rate, let’s say 10% is the taxes. There would be deductions or exemptions or additions to the taxes. This would create a more consistent form of taxes to be paid. Since there are no exemptions or special additions the amount would make it so there would be more money from taxes coming into the Federal and State Government. The countries who have put a flat tax on their country and seen a huge amount of economic growth, up to 6 percent. One of the problems is that these countries are partially tied to the United States and the biggest amount of their growth is during the 90s, when the United States was very stable and had a good amount of growth too. So there is a direct correlation and a heavy amount of data to say causation, but still there is doubt if there is actual truth to this statement. In the comments below what do you think is a good idea?

References

Jarmon, Jack. 2009. University of Pennsylvania. 3 1. http://repository.upenn.edu/curej/130/.

Kavoussei, Bonnie. 2012. HuffPost. 9 21. http://www.huffingtonpost.com/2012/09/21/poor-americans-state-local-taxes_n_1903993.html.

Pomerleau, Kyle. 2015. Tax Foundation. October 14. http://taxfoundation.org/article/2016-tax-brackets.

Povich, Elaine S. 2015. The Pew Charitable Trusts. January 15. http://www.pewtrusts.org/en/research-and-analysis/blogs/stateline/2015/1/15/the-poor-pay-a-higher-percentage-of-income-in-taxes.

n.d. The Huffington Post. http://www.huffingtonpost.com/news/government-subsidies/.