Recent developments in our economy, companies that are too big to fail, and skyrocketing unemployment have required unprecedented action from our legislators. Have their actions, through the use of taxpayer funds, been consistent with the objectives of the income tax law? Please explain.

Recent developments in our economy, companies that are too big to fail, and skyrocketing unemployment have required unprecedented action from our legislators. Have their actions, through the use of taxpayer funds, been consistent with the objectives of the income tax law? Please explain.

 

 

answer:
Actually the tax payer money is not consistent with the objectives of the income tax laws as the money is intended for the welfare of the people of the country and also to redistribute the income from rich to poor.But bailing out commercial and investment banks doesn’t fit into the these objectives as these money was used for giving huge bonuses to the top executives of those banks making them super rich.Those banks were on the verge of bankruptcy only because of their greed which made them take huge risks by taking leverages which they could not afford.

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