Taxation is an extremely controversial subject in the United States because, in order to continue to benefit from American comforts in health care, social security, national defense and neighborhood, and regulated clean water and air, it is necessary to name a few, we continue to increase the demands of our government without wanting to pay for the provision of services. Remember that money is currency and can be used to consume, invest, save, pay loans (including credit cards), or pay taxes. If you ask different families what it means for Americans to have life, liberty, and the pursuit of happiness as described in the Declaration of Independence, the answers will vary greatly. Background: The United States Economy and the Reasons for Taxation The American economy is considered a mixed market. economy, which combines private and public sector production with consumers that regulates prices based on a supply and demand model. The private sector adopts a capitalist economic approach that allows individuals to make profits by acquiring capital and employing it to control the production and distribution of goods or services. By its nature, capitalism promotes entrepreneurship, risk-taking, competition, innovation and economic growth. People from all over the world are migrating to the United States to enjoy what we call the “American Dream.” In 1931, James Adams defined the American Dream as: "The dream of a country in which life should be better, richer, and more fulfilling for everyone, with opportunities for each according to his abilities or achievements." » For entrepreneurs willing to accept the risk associated with starting a business, some have become extremely wealthy. Although our economy is focused on capitalism as a means of promotion...... middle of document ....../01/index.html?contentType=>.Garson, D. "The Tax Reform Act of 1986. “The Tax Reform Act of 1986. Pearson Higher Education. Internet. April 22, 2011. “What is AMT?” » Home of the Tax Policy Center. Internet. April 22, 2011. Urban Institute and Brookings Institution. .Drucker, ByJesse. "The tax haven that saves Google billions - BusinessWeek." Businessweek - Economic news, stock market and financial advice. October 21, 2010. The web. April 22, 2011. Bachman, Paul, Jonathan Haughton, Laurence J. Kotlikoff, Alfonso Sanchez-Penalver, and David G. Tuerck. Taxing sales under FairTax: what rate works? Cambridge, MA: National Bureau of Economic Research, 2006. Print.