Link to video Part 1:http://goanimate.com/videos/0T2bcTTEVfeU?utm_source=linkshare
Link to video Part 2: http://goanimate.com/videos/04lY-MlZf-Oc?utm_source=linkshare
Link to video Part 3: http://goanimate.com/videos/04W2TPRqKOlk?utm_source=linkshare
Annotated Bibliography 1
Corporate Tax Rates. “Corporate Tax Rates a Useful Trim” The Economist, 25 February 2012. Web. 19 March 2012 <economist.com>
“Corporate Tax Rates” published by The Economist on 25 February 2012, focuses on how America has fallen behind the rest of the world in corporate tax rates. While the rest of the world has been steadily reducing their corporate tax rates, America has been reluctant to do the same (Corporate Tax Rates). As a result, according to the article “Corporate Tax Rates”, “American-based multinational companies have shifted more activity offshore; their foreign employment has steadily risen over the past decade as domestic employment has declined”. President Obama and four presidential hopefuls have plans to reduce this rate, but don’t have a way to pay for this decreased revenue, which may decide if reform is actually made (Corporate Tax Rates).
This article “Corporate Tax Rates a Useful Trim” helps describes how American corporate tax laws are outdated and lacking a competitive edge compared to the rest of the world. This article is very credible; the publisher (The Economist) is a very well-known and unbiased source of economic data and predictions. This article is important to my research because it shows that there is motive for America to reduce corporate tax laws. Since large manufacturing corporations decide where to produce their products based on these laws. Before I thought reducing corporate tax rates in America would cause and increase advantage in America’s economic superiority, but now I feel a reduction in corporate taxes is needed just to compete with the rest of the world in the coming years.
Annotated Bibliography 2
Franks, Robert H. “The Illusory Attraction of Taxing Business” Microeconomics and Behavior, 8th ed. New York: McGraw-Hill/Irwin, 2010. 364-365. Print.
The section The Illusory Attraction of Taxing Business from the book “Microeconomics and Behavior” by Robert H. Frank, focuses on how in a perfectly competitive market there is no difference between taxing a consumer and taxing a business. According to Frank, a tax placed on a business will be passed on to the consumers via higher prices. However, lawmakers have a better chance of imposing higher taxes when there are on businesses rather than on consumers (Robert H. Frank). The effect of this tax is a number of firms in that certain industry going out of business (Robert H. Frank).
Frank’s article was informative on the relative impacts of a tax on consumers and businesses. This piece was credible because the author is a well-known economist from Cornell University, and was published in a college level economic textbook. This article is important to my research because it infers how an increase in consumer taxes along with a decrease in business taxes would not significantly affect the budget deficit, since both taxes are essentially the same in perfectly competitive markets. Frank’s article shows how a business tax would affect the prices of their products. Before I thought that businesses would pay taxes purely out of profits instead of raising prices, but now I know they would raise prices.
Annotated Bibliography 3
Colander, David C. “Comparative Advantage in Today’s Economy” Microeconomics 8th ed., New York: McGraw-Hill/Irwin, 2010. 206-208. Print.
The “Comparative Advantage in Today’s Economy” section in David C. Colander’s book “Microeconomics, published by McGraw-Hill/Irwin in 2010, focuses on how trade benefits nations due to comparative advantage. David argues that comparative advantage benefits the United States by allowing for many cheap imports which causes the purchasing power of the dollar to increases. However, as David states, comparative advantage only benefits a nation through trade if the imports in that nation equals the exports. If it does not a nation must pay for this increased debt (David C. Colander). As Colander states, because other countries can sell their products for less the U.S. national debt will continue to increase.
Colander’s piece was informative on how a specific country’s firms faces competition from other country’s firms. This piece is credible because it was publish in a college level text book by David C. Colander an accomplished economist from Middlebury College. The reading is important to my research because it demonstrates how increase prices in the United States can lead to lower net exports, due to comparative advantage between nations. Colander’s article shows that comparative advantage causes trade to be more beneficial to a nation then harmful, but if net exports become too low it may lead to damaging side effects. Before I read this article I didn’t realize how beneficial trade can be between nations.
Annotated Bibliography 4
Schiller, Bradley R. “Recessionary GDP Gap” The Macro Economy Today for ECON 204, New York: McGraw-Hill/Irwin, 2011. 192. Print.
The section “Recessionary GDP Gap” in the book “The Macro Economy Today for ECON 204” published by McGraw-Hill/Irwin in 2011, focuses on how recessions and unemployment comes about. According to Schiller, real GDP is the sum of consumer purchases, investments, government expenditures, and net exports. When one of these components falls when real GDP equals full-employment GDP, than a recessionary GDP gap emerges (Schiller). A recessionary GDP gap is the amount below full employment GDP, the current GDP is at (Schiller). According to Schiller, when a recessionary GDP gap emerges cyclical unemployment (unemployment attributed to lack of job vacancies) follows.
Schiller piece was informative on how a reduction in a component of real GPD can lead to recession and unemployment. The piece was credible because the author is a very accomplished economist with decades of experience. Also, this piece was published in a college level text book. This reading is important to my research because it details how a reduction in net exports can cause unemployment. Schiller’s reading shows what factors of real GDP are and how an effect in one of them causes a change in real GDP. Before I read this piece I didn’t know how decreasing net exports causes unemployment.
Annotated Bibliography 5
Schoen, John W. “How Dangerous is the National Debt” MSNBC. 02 November 2007. Web. 24 March 2012 <msnbc.com>
“How Dangerous is the National Debt” by John W. Schoen, published on November 2nd 2007 by msnbc.com, describes the growth and the size of the national debt in 2007 compared to previous years, and how this debt effects the economy. As Schoen states, the national debt creates problems for a multiple of reasons, one of which is the interest the government has to pay on its debt. According to Schoen states in 2007, 9 cents of every dollar in taxes is spent on interest payments. As Schoen states, if this debt gets too big investors in the U.S. government may not trust they will be paid back, causing the government to increase interest rates on their bonds. This increase will result in increased interest rates over the entire economy, making it harder for businesses to invest and reducing GDP growth.
This article describes how the national debt has many negative side effects that may hurt GDP. This article is credible; it is published by MSNBC a well-known news organization. However, MSNBC is left leaning but this article doesn’t support either political party. This article is important to my article because it infers how an increase in national debt due to decreased business taxes can have an adverse effect on GDP and therefore unemployment. This article describes what causes these effects. Before I read this article I didn’t know just how big the effect the debt had on the economy.
Annotated Bibliography 6
Palacios, Milagros, and Kumi Harischandra. “The Impact of Taxes on Economic Behavior: High Taxes Decrease Growth and Investment”. February 2008. Web. 24 March 2012 <pirate.shu.edu>
The article “The Impact of Taxes on Economic Behavior: High Taxes Decrease Growth and Investment” by Milagros Palacios & Kumi Harischandra published in February of 2008, studies the various effects of the taxes on economic performance. According to Milagros and Harischandra, a study done by the “Organization for Economic Co-operation and Development” found that for every ten percent increase in marginal tax rate reduces economic growth by 0.23 percentage points. The reasons for these effects, according to Milagros and Harischandra, are “high and increasing marginal tax rates reduce economic growth by creating strong disincentives to hard work, savings, investment, and entrepreneurship” (Milagros and Harischandra).
Milagros and Harischandra article was informative on the negative effects taxes have on the economy. This piece was credible because they got most of their resources from college studies as well as economic and governmental studies. This article is important to my research because it states a reduction in corporate taxes will result in a direct increase in economic performance. This article showed the initial effect of any tax change on the economy. Before I read this I did not think that a reduction in taxes would help the economy in so many ways.
Annotated Bibliography 7
The Effect of. “The Effect of an Excise Tax on Market Price and Quantity (Part I).” University of Washington. Web. 25 March 2012, <Washington.edu>
The paper “The Effect of an Excise Tax on Market Price and Quantity (Part 1)” published by the University of Washington, states an excise tax is a tax placed usually on a business to compensate for a negative side effect of their product. For example as “The Effect of” illustrates, the excise tax on cigarettes in Washington is $3.025. “The Effect of” explains that an excise tax can either be put on a buyer or the seller. If it is on the seller it is included in the price of the product, but if it is on the buyer the price shows up at the time of sell (The Effect of). However, due to tax equivalence the tax is the same to both parties no matter who it is assigned to (The Effect of).
This article was informative of how excise taxes are used to place an added burden to those things with negative side effects to society. Also, that it is mostly used as a business tax not a sales tax. The article is important to my research because as the article suggests if business taxes are eliminated altogether it would be harder for the government to implement these excise taxes. This article states that most excise taxes are placed on businesses. Before I read this article I did not know that eliminating business taxes would make it harder to institute excise taxes.