The Tax Cuts and Jobs Act of 2017 (TCJA) Coursework Research

Introduction
The Tax Cuts and Jobs Act of 2017 (TCJA) introduced various changes to business, individual, and international tax system. Some of these changes were driven by the concerns raised on the economic unfairness, inefficiency, and complexity of the federal tax system (Wagner et al., 2020). For instance, personal exemptions eliminated and replaced with a larger standard deduction.
However, the current tax system still remains largely complex, limiting the taxpayers’ capacity to understand and comply with the laws regulation tax and taxation. In addition, TCJA instituted major changes that resulted in reduction of tax revenues. As a result, the increasing imbalance between spending and revenue in the country has increased. The imbalance has further being heightened by the response of the country towards the coronavirus pandemic.
The criteria that were used in evaluating policy provisions and drawing a comparison between tax proposals include efficiency, fairness, transparency, simplicity, and administrability. However, there is a conflict between the criteria, creating the need for tradeoffs. This has also raised a debate among policymakers who advocate tax reforms. Besides the current tax system having various advantages and disadvantages, various approaches can be taken to improve its efficiency and achieving optimal taxation.
How to Improve Current Tax System
Governments collect taxes as one major source of revenue. On the same note, the same governments state the various tax policies that should determine the taxes to collect, the amount, whom to be exempted, and many other aspects. Some of the tax policies help society to save and invest. For instance, by having tax incentives, the government motivates people to work extra hard. A good example is a case where there are low marginal tax rates. Such a policy helps people to retain more income, which also allows them to save more. The same happens to businesses and it enhances their ability to invest more. Therefore, it is prudent that some tax policies, most of which reduce the amount of taxes that people pay allow them to save and invest. This also shows how the government can play a crucial role in enhancing savings and investments by the people. If it can develop such friendly tax policies, then the people would have the power and opportunity to save and invest in various businesses.
On the other hand, the same tax policies can be disadvantageous as far as saving and investment are concerned. For example, the same tax incentives can lead to low revenue collection by the government. This implies that that the government may not be capable of fostering economic growth. The moment the economy is low, then the implication would be that many people would not be capable of saving and investing. This shows that the tax policies have both sides. They can lead to improved saving and investment, while they can also reduce saving and investment. It is upon the government to determine the tax policies that can lead to improvements, as far as saving and investment are concerned. People also need to evaluate the implications of these tax policies and how they can play a role in their implementation. Also, leaders need to enhance the development of tax policies that ...