SB22

SB22 Economy, Economic Growth - A.Julian., Kiley

__House:__ Senate

__Bill Number:__ SB22

__Sponsors:__ K Adamic, Nebraska, R AJulian, South Dakota, R

__Issue Category:__ Economic Growth

__Bill Title:__ Cut More, Spend Less

__Purpose:__ What our bill is trying to accomplish is to help, and improve our economy. We wish to lower taxes on low income citizens who are unable to pay taxes. Along with that we want to try to spend less money in the government.

__Eligibility:__ This bill is made to apply to select groups such as business owners, and/or employees, along with American citizens who are not reaching a certain amount of roughly $7,500 dollars regularly.

__Terms and Benefits:__ Economy is the foundation to a productive country. To make it an even better one, our bill proposes to lower tax on lower income citizens, small business owners, and spend less money more wisely in the government. The main purpose of taxing people is to provide money to various levels of the government so they can perform their own jobs properly. But, if the taxes are too high for certain people, then they will be unable to pay that amount of money. If we lower their taxes, they will then be able to pay their taxes, and the government can still earn money; helping the economy grow slowly. This bill, if passed, will be in effect for roughly eight years. During that time period people with lowered taxes are expected to pay their taxes fully. They are also expected to use that time to save, and invest, the money that doesn’t go to taxes to be able to continuously pay their future tax. Our first step to make this bill effective is to lower taxes on certain citizens, and businesses, with low income of roughly $20,000. As a country we do need taxes for a functional government, but the less tax isn’t necessarily a negative. If low income Americans would be able to keep more of their money rather than spending all of it on taxes they couldn’t afford, they would surely save and spend the money in the future. By spending money, businesses earn more, expand, and then will have more available jobs. Just by lowering some tax, will result in three simple benefits that will help the economy grow, and in the end the federal government will still collect taxes to perform their jobs. Our second step for the bill to perform fully is to only lower tax for people with a specific income. If people with high incomes can pay taxes now, they can surely later. This means that if you have an income higher than $7,500 or $8,000 then you will not receive a tax cut. If high waged citizens still keep the same amount of taxes they will also have a role to play in the economic growth. Since the government would receive less from the tax cuts, the higher waged Americans will put more money into the government that is needed. The third and final step to this bill is for the government to spend less on money where it’s not needed. If government spends money on only necessary programs to work properly, and to avoid raising taxes, then they would save money, and help the economy. If the federal government is able to balance their budget wisely, then this bill will surely help our economy grow from what it has become.

__Fiscal Impact:__ Items Needed: Computers: $300 Workers: 50 Yearly Salary per Person: $36,000 Cost to work in a Building: $1,980 per year. Total Cost in one Year: $1,816,980

__Resources__

• Saldin, Robert. "Tax Reform: Outlook." //Issues: Understanding Controversy and Society//. ABC-CLIO, 2010. Web. 9 May 2010. . • MLA- Saldin, Robert. "Tax Reform." //Issues: Understanding Controversy and Society//. ABC-CLIO, 2010. Web. 9 May 2010. . • Dilges, Jason. "South Dakota Economy." //South Dakota Economy//. Bureau of Finance and Management, n.d. Web. 12 May 2010. . • "Self Employment Buisness Deduction." //Legal Database//. N.p., n.d. Web. 9 May 2010. . • Inglis, Bob. "Raise Wages, Cut Carbon Act of 2009." //The Library of Congress THOMAS//. N.p., 13-5-2009. Web. 9 May 2010. • Republican Party Platform (2008)." //American Government//. ABC-CLIO, 2010. Web. 19 May 2010. .  •  McCoy, Kevin. "Income tax cuts benefit all payers." (2010): n. pag. Web. 19 May 2010. .  •  "lifetime learning credit." //legal database// (2010): n. pag. Web. 19 May 2010. . <span style="font-family: 'Arial','sans-serif'; font-size: 10pt; line-height: 115%; mso-fareast-font-family: Arial; msofareastfontfamily: Arial; msolist: Ignore;">• tax cuts." (2010): n. pag. Web. 19 May 2010. <http://www.nytimes.com/2008/06/01/business/01veiw.html?_r=1>.  <span style="font-family: 'Arial','sans-serif'; font-size: 10pt; line-height: 115%; mso-fareast-font-family: Arial; msofareastfontfamily: Arial; msolist: Ignore;">•  Democratic Party Platform (2000)." //American Government//. ABC-CLIO, 2010. Web. 19 May 2010. <http://www.americangovernment.abc-clio.com**>.**