In the United States, we have a tax system known as a progressive tax system. In a progressive tax system, the amount of tax is based on the income of the individual. That is, wealthier individuals pay a higher tax than someone with low income. Still, some people believe a flat tax rate, similar to Europe’s tax system, would be more beneficial. As the name suggests, a flat tax means everyone’s income would be taxed an equal rate regardless of status. I believe the United States should stay with a progressive tax because it will generate more revenue for the government and reduce income inequality.
Taxes are a significant source of revenue for government. Currently, the more an individual makes, the bigger the cut the government takes. If, for
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The Gini Index is the most commonly used tool to measure income inequality. On a scale where 0 means perfect equality and 100 being perfect inequality, the United States was found to have a 41.1. Michael Linden in his article How Federal Tax Policy Changes Have Affected and Will Affect Income Inequality clarifies how the Gini index “does not have an intuitive meaning for most people. Saying that the average household among the richest 1 percent of households takes home nearly 30 times as much as the average household among the middle 20 percent, however, may be a clearer way of expressing the same thought.” To combat this inequality, the tax rate must correlate with the income of an individual. If a wealthy individual pays a higher tax, then there post-tax income would more closely resemble that of a lower income individual who pays a lower tax. Obviously, they would not be completely equal, but they would be closer than they would be without the progressive tax. As co-founder of Microsoft, Bill Gates, states in his article Why Inequality Matters , “High levels of inequality are a problem—messing up economic incentives, tilting democracies in favor of powerful interests, and undercutting the ideal that all people are created equal.” Keeping with the progressive tax is the first step in resolving income
The income tax would try to even the playing field, so the rich would have to pay higher taxes while the poor pay smaller taxes. Also, the income tax would serve as payment for the government so in turn they can pay for different areas of
While wealth inequality has always been an issue in the United States, it has became more of a pressing matter in America since the late 1980’s, and has only continued
the Pew Research Center found. The some corporations that don’t pay their fair share maintain of higher income families or also know as rich people. The lower income families were found to pay more than they should and that the Government bank on them more than the higher income. Finally, the medium income families present that the taxes should be reformed. What has this to do with the Government getting its’ power from the people?
One of the arguments used is that we could regulate and tax the 1% income because that would be “fair” but these numbers show how harmful that way of thinking is. 18% of taxes for the “bottom” of the bracket which is around 20% of the U.S population.
In Canada, before the election, there was an argument about the amount of money each individual should being paying for taxes. Many argued that the upper class should be paying more taxes, while the lower class pays fewer taxes. However, obviously most upper-class people did not agree with this and they thought they should keep the money that they earn. After Justin Trudeau was elected as the Prime Minister of Canada, he made the promise to have the upper class pay more taxes. At first I was disappointed of this outcome.
Why should the poor and rich have to pay the same amount of taxes if they make extremely different incomes? Brooks focuses on the social and migration problems of progressive taxing and doesn’t apply his thought to the economic issues, as he
There once was a donkey and an elephant that lived together in not-so-perfect harmony. Their relationship is like the cardinal directions – North and South; they are the complete opposite of each other. The donkey is more optimistic and truth-seeking while the elephant, on the other hand, is cynical and deceitful. “What is a great solution to help our country progress?” pondered the donkey. “Well…I believe if all citizens of America would pay their taxes..uh.. we would be just fine.”
The discussion of the Lorenz curve in Chapter 19 provides information on income inequality that has arisen in the United States since 1967, as factors like education which are characteristic of society affect the results of such percentages. Poverty, poor income distribution in the population, the economy, government policies, welfare reform among others are part of that discussion giving us a clear view of what happened in the North American country. According to the World Bank's Gini index measures the extent to which the distribution of income (or, in some cases, consumption expenditure) among individuals or households within an economy moves away from a perfectly equal distribution. A Lorenz curve shows the cumulative percentages of total income received against the cumulative number of recipients, starting from the poorest individual or household.
The article says, “While the top 1 percent have seen their incomes rise 18 percent over the past decade, those in the middle have actually seen their incomes fall.” (Stiglitz 2011) While the rich are getting higher incomes prices the poor are getting higher income by taking it from the one in the middle which therefore, makes them get a lower income percentage. America has fallen behind because of not being an equal country to the population by the income equality there is a huge gap between the income being earned by the poor and the rich. The rich are wealthy and the poor depend on the government for everything. As stated in the article, “America lags behind any country in the old, ossified Europe that President George W. Bush used to deride.
Also, the wealthy is known to be rich, so as they collect more and more taxes, they will spend it on stuff we don't need; instead of paying it on taxes. For
In addition, taxation should balance equity and efficiency as much as possible. Most often, personal incomes are used as tax bases and grouped according to their ability-to-pay. When
Taxes are collected by people rely more on income tax, following by production and import tax, and other tax. The government change rate of income tax to reduce marginal tax rate which leads to development in income tax. Tax bracket for the middle class increase, so less people pay middle tax. It also has the allowance of employment for employees who earn low-wage income. In the same time, the bracket for top tax also increase, so the government can exercise lower revenue or tax, but marginal tax does not decrease as middle and top taxes which the government can collect.
The federal tax system is plagued with issues: It doesn 't raise sufficient revenue to back government spending, it is unpredictable, it makes results that are unreasonable, and it impedes monetary productivity. This part examines a few approaches to enhance charges, including making an esteem included duty, expanding natural taxes, improving the corporate expense, treating low-and center pay workers evenhandedly and productively, and guaranteeing suitable tax collection of high-wage family units. A good tax system raises the incomes expected to fund government spending in a way that is as basic, evenhanded, and development well growth as could reasonably be expected. The United States does not have a good tax system.
But, taxing the rich more also wouldn’t be impartial that fair because the government already wastes much of the money pay they collect. Even though the wealthy have a higher income and can afford it, most of the wealthy worked hard to get where they are now. If we make the Making the rich pay higher taxes will have advantages and disadvantages as well.
Do you ever think of why should or shouldn’t the rich people pay more tax than others? Nowadays, people are arguing about the fairness of paying more tax. Statistics have proven that the rich have paid the majority of U.S. income taxes. A person making $100,000 will pay a higher percentage of his income in taxes than a person making $20,000 for instance. According to the Congressional Budget Office, “The 10% of households with the highest incomes pay more than half of all federal taxes.