7.07-

  1. There is much debate about the best way to organize taxes. In your opinion, what is the fairest tax plan and why?

Although both the flat tax plan and the progressive tax plan have many pros and cons, I would have to say the progressive tax plan is the fairest. Theoretically, the flat tax plan would the fairest as everyone has the same tax rate no matter what the income. This, however, can actually put a huge burden on the lower class. If everyone were paying the same tax rate, the lower class would actually be paying a bigger proportion out of their paycheck compared to someone of higher income class. At first, the progressive tax plan seems unfair since tax is determined based on income. In the U.S., we have a progressive tax plan, which is based off income brackets. This is actually fairer because it does not put as much of a toll on the lower income class.

  1. What is a monopoly? What has the government done to prevent monopolies? Should the government regulate monopolies more? Why or why not?

A monopoly is when a particular individual or corporation becomes the only supplier of a particular product. One example of the government attempting to prevent monopolies is the Sherman Anti-Trust Act. The Sherman Anti-Trust Act limited monopolies by fining trusts or monopolies that were restraining smaller businesses from prospering. The Sherman Anti-Trust Act failed because the act failed to clearly define what a trust or monopoly was. I think the government should try to regulate monopolies more because many small businesses are driven out of business because they cannot keep up with huge corporations. Unfortunately, regulating monopolies is not the easiest thing to do since big corporations and businesses play such a significant role in politics. Fortunately, many small businesses are still prospering, even if it is not as much as before.