Tax policy

Tax policy is the choice by a government as to what taxes to levy, in what amounts, and on whom. It has both microeconomic and macroeconomic aspects. The macroeconomic aspects concern the overall quantity of taxes to collect, which can inversely affect the level of economic activity; this is one component of fiscal policy. The microeconomic aspects concern issues of fairness (who to tax) and allocative efficiency (i.e., which taxes will have how much of a distorting effect on the amounts of various types of economic activity).

Philosophy

Policymakers debate the nature of the tax structure they plan to implement (i.e., how progressive or regressive) and how they might affect individuals and businesses (i.e., tax incidence).

The reason for such focus is economic efficiency as advisor to the Stuart King of England Richard Petty had noted that the government does not want to kill the goose that lays the golden egg. Paradigmatic efficient taxes are those that are either nondistortionary or lump sum. However, economists define distortion only according to the substitution effect, because anything that does not change relative prices is nondistortionary. One must also consider the income effect, which for tax policy purposes often needs to be assumed to cancel out in the aggregate. The efficiency loss is depicted on the demand curve and supply curve diagrams as the area inside Harberger's Triangle.

Donald Trump

Donald John Trump, Sr. (born June 14, 1946) is an American businessperson and media personality. He is the chairman and president of The Trump Organization and the founder of Trump Entertainment Resorts. Trump's career, branding efforts, personal life, wealth, and outspoken manner have made him famous throughout the country. Since 2015, he is also a candidate for the Republican nomination for President of the United States in the 2016 election.

Trump is a native of New York City and a son of Fred Trump, who inspired him to enter real estate development. After two years at Fordham University and while studying at Wharton School of the University of Pennsylvania, Trump worked for his father's firm, Elizabeth Trump & Son. Upon graduating in 1968 he joined the company, and in 1971 was given control, renaming the company "The Trump Organization". Since then he has built hotels, golf courses, and other properties, many of which bear his name. He is a major figure in the American business scene and has received prominent media exposure. The NBC reality show The Apprentice bolstered his fame, and his three marriages were extensively reported in tabloids.

Ted Cruz

Rafael Edward "Ted" Cruz (born December 22, 1970) is an American politician and the junior United States Senator from Texas. He is a candidate for the Republican nomination for President of the United States, in the 2016 presidential election.

Cruz graduated from Princeton University in 1992, and from Harvard Law School in 1995. Between 1999 and 2003, Cruz was the director of the Office of Policy Planning at the Federal Trade Commission, an associate deputy attorney general at the United States Department of Justice, and domestic policy advisor to President George W. Bush on the 2000 George W. Bush presidential campaign. He served as Solicitor General of Texas from 2003 to 2008, appointed by Texas Attorney General Greg Abbott. He was the first Hispanic, and the longest-serving solicitor general, in Texas history. From 2004 to 2009, Cruz was also an adjunct professor of law at the University of Texas School of Law in Austin, where he taught U.S. Supreme Court litigation.

Cruz ran for the Senate seat vacated by fellow Republican Kay Bailey Hutchison, and in July 2012 defeated Lieutenant Governor David Dewhurst during the Republican primary runoff, 57%–43%. Cruz then defeated former state Representative Paul Sadler in the November 2012 general election, winning 56%–41%. He is the first Hispanic American to serve as a U.S. senator representing Texas, and is one of three Senators of Cuban descent. Cruz chairs the United States Senate Judiciary Subcommittee on Oversight, Federal Rights and Agency Activities, and is also the chairman of the United States Senate Commerce Subcommittee on Space, Science and Competitiveness. In November 2012, he was appointed vice-chairman of the National Republican Senatorial Committee.

Ronald Reagan

Ronald Wilson Reagan (/ˈrɒnəld ˈwɪlsən ˈreɪɡən/; February 6, 1911 – June 5, 2004) was an American politician and actor, who served as the 40th President of the United States from 1981 to 1989. Prior to his presidency, he served as the 33rd Governor of California from 1967 to 1975, following a career as a Hollywood actor and union leader.

Raised in a poor family in small towns of Northern Illinois, Ronald Reagan graduated from Eureka College in 1932 and worked as a sports announcer on several regional radio stations. After moving to Hollywood in 1937, he became an actor and starred in a few major productions. Reagan was twice elected as President of the Screen Actors Guild, the labor union for actors, where he worked to root out Communist influence. In the 1950s, he moved into television and was a motivational speaker at General Electric factories. Having been a lifelong liberal Democrat, his views changed. He became a conservative and in 1962 switched to the Republican Party. In 1964, Reagan's speech, "A Time for Choosing," in support of Barry Goldwater's floundering presidential campaign, earned him national attention as a new conservative spokesman. Building a network of supporters, he was elected Governor of California in 1966. As governor, Reagan raised taxes, turned a state budget deficit to a surplus, challenged the protesters at the University of California, ordered National Guard troops in during a period of protest movements in 1969, and was re-elected in 1970. He twice ran unsuccessfully for the Republican nominations in 1968 and 1976; four years later, he easily won the nomination outright, going on to be elected the oldest President, defeating incumbent Jimmy Carter in 1980.