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INCOME
INEQUALITY
Congress & Policy Makers
The President
The executive branch spends months of preparation to come up with a tax bill and recommend it to Congress.
The House
All tax legislation originates in The House. They take action on the bill before the Senate considers it.
The Senate
The Senate votes on the bill, presented by the Senate Finance Committee.
The IRS
Why does the U.S. Congress create tax breaks?
The IRS is primarily responsible for enforcing tax laws and regulations.
Congress creates tax breaks to incentivise people to help contribute to the well-being of the country. Charitable deductions encourage people to donate to charities and nonprofits, which do a lot of service for people in need. Mortgage income deductions encourage home ownership and the betterment of the housing market. Capital Gains encourage investment, a major source of funding for the American economy.
Does Congress believe tax codes create income inequality?
The United States has a two-party system, which causes division and gridlock in Congress. Generally, the Democratic legislators believe that tax breaks create income inequality and are in favor of diminishing them. Republican legislators believe that tax breaks encourage and create a thriving environment and believe that the country has the right amount of income inequality.
2020 Election
The upcoming 2020 election determines the future of tax breaks. It will determine which political party holds power in the House and Senate, and which President will hold influence over tax code decisions.
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