ABSTRACT
This chapter explores recent tax policies in the United States and the effect of these policies on the American taxpayer. It examines government spending priorities and the impact of spending on deficits and the national debt. The chapter discusses the different approaches to tax and spending policies taken by Democrats and Republicans. When the government sets policies that are designed to remove money from people's pocketbooks or corporate ledgers such policies become a major issue area and that debates, differences, and divisions will follow. Discussing the debates surrounding tax policy in the United States and pointing out the differences and divisions is not a simple matter of Democrats versus Republicans, liberals versus conservatives. Either taxes go up or taxes go down, either the rich benefit or the middle and lower classes benefit, and either the money citizens pay to the government is prioritized toward national defense or toward social welfare.
