Tax changes have been implemented by President Obama due to the current economic downturn. Average Americans will be benefited with the new tax cut which will help them to combat financial crisis. Mr. President has introduced the new tax cut plan to safeguard the position of financially strapped people. But there will be an immense impact of the tax cut on the government resources as that will lead to government revenue stream ebbing. You will qualify for this program on the basis of your tax filing status.
Here are 6 ways to evaluate the tax cut: 1. Critically evaluate the financial changes that have an impact on the working and business taxpayers. You can analyze if the Making Work Pay tax credit will bring a change in the working class people, who have been given percent tax credit on their income. Browse through the website www.whitehouse.gov to get detail information on this process. 2. Jot down few lines for clarification if the situation of American taxpayers have improved or not. Estimate the money an average citizen manages to save. Then analyze the tax savings granted as per the law or an Internal Revenue Service tax cut summary. You can approach the Congressional Budget Office (CBO) to get an overview of the taxpayers who have taken advantage from this annual tax reduction process. 3. Calculate the total revenue the government loses because of the tax cut. The individual tax provision cost is assessed by the Office of Management and Budget (OMB). Therefore, browse through the website http://www.whitehouse.gov/omb/ to understand the evaluation. 4. The income bracket and special interest of the citizens will guide you to prepare a report on the new balance in taxation; so proper evaluation is crucial. Office of Management and Budget and Congressional Budget Office help to cut down the tax with income bracket and special interest. 5. The OMB budget helps to evaluate the abundance of revenue usually utilized for government expenses. Once you estimate the total government revenue, subtract it from the tax cuts. Then match the annual revenue with the total expenditure. Now you can analyze whether it will be logical for the Americans to heap their wallets at the cost of government revenue. There must some alternative solution to this problem of economic meltdown which will help to secure the financial future of the Americans.