[Verse 1] Sam and Sally earn the same wage, fifty thousand every year Horizontal equity means they both pay equal tax, crystal clear But Sally's wealthy, Sam's in debt, vertical equity says Those who can afford much more should shoulder heavier displays [Chorus] H and V for equity, E-S-A for the machine Horizontal, vertical, efficient, simple, clean Progressive ladders climb up high, marginal rates that grow Tax expenditures hide spending where the budget doesn't show [Verse 2] Efficiency means markets flow without distortion's heavy hand Simplicity keeps forms concise so citizens understand Administrability helps the IRS collect with ease Three pillars holding up the roof of tax policy's expertise [Chorus] H and V for equity, E-S-A for the machine Horizontal, vertical, efficient, simple, clean Progressive ladders climb up high, marginal rates that grow Tax expenditures hide spending where the budget doesn't show [Verse 3] Progressive taxation builds in tiers like a wedding cake First ten thousand taxed at ten, then fifteen percent you'll make Your marginal rate's the bracket where your final dollar lands Not the rate on all you earn, just the top tier's demands [Bridge] Deductions, credits, special breaks are expenditures in disguise Instead of writing checks direct, we shrink your tax bill size The expenditure budget tracks all the revenue we lose From mortgage interest, charity, the breaks that taxpayers use [Verse 4] Static scoring counts the cash as if behavior stays the same Dynamic scoring factors in how people change the game When rates go up, some work less hard, when rates fall down, they strive The feedback loops and ripple effects keep estimates alive [Outro] Four fundamentals guide the way that tax systems operate Equity and efficiency, the goals we navigate From marginal brackets climbing up to hidden spending schemes These pillars shape America's fiscal policy dreams
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