Albert Einstein once said, “the hardest thing to understand in the world is the income tax.” In United States, there is local government, state government and federal government with various branches. Money is needed in different sectors of a country like military, health, education, and it has to be taken out of somewhere. The government officials and workers get their salary by the tax paid by everyone. There are different types of taxes, income tax, sales tax, property tax these all are to be paid by everyone, if not then they will face penalties or jail time which is monitored by Internal Revenue Services (IRS). Since everybody who earns must pay taxes, the main debate is that should rich people pay more tax i.e. should they be paying higher …show more content…
The first one is that, when a country is having hard economic issues, the best way to get money for government is to tax more on rich people. Since the wealthy people can afford high tax rates, they can be taxed more. Many say that tax money from rich should be raised for the contribution to the poor population. There are some people who argue about the fact that kids of rich people who have all the wealth of their parents and never had to work a single day in their lives still doesn’t pay tax, this doesn’t explain the hard work theory. Another reason to tax more for rich people is to keep the boundary between rich and poor maintained, when rich people become too rich and they have all their money while poor don’t then there comes a strong wall between the rich and the poor which creates violence and social …show more content…
So, hard work of a person should be appreciated and should not be taken from them. Some say that American government is already wasting a lot of money collected from taxes and if they raise more tax, they will just be getting more money to waste so there is no point to raise tax on wealthy people who worked hard to earn that money. Stephen king once said,” everyone should pay their fair share” meaning that everybody should pay equal tax rich or poor. And another reason for not paying high tax is that, it might encourage a class war (rich and poor). Since the wealthy people will be paying more tax and the poor less tax, they will start to dislike each other, there will be violence in the name of
Our current system of taxation is a varied rate percentage based on different income brackets. Many say that it violates our constitutional rights through unequal taxation. Multiple deductions, loopholes, special rates, and a complex system of regulations all characterize our Federal Income Tax System, prompting many to question why it is still being used (Peters, 2013). The current system although bringing in over $3 trillion, taxes income multiple times, and includes the taxing of estate, labor, savings, and investments (National Priorities Project, 2013). The system itself is complex with over 20,000 pages of regulations, requiring a massive filing system, which is set up and maintained by an even larger IRS, requiring over $225 billion in compliance costs (Hall, 2001). One can be hard pressed to find an advantage in the current system, other than the fact that it provides the government with an enormous amount of funds, and it has...
Many ponder the idea of federal taxes and whether the wealthy deserve to pay a higher percentage rate of their overall income. That is, they argue that because our society needs more equality and a lower national budget deficit, taxes on the rich must be raised. This specific topic has been discussed for decades, and due to the severely different perspectives, it is unclear whether the two sides will ever come to an agreement. President Barack Obama and much of the Democratic Party strongly lean towards raising taxes on the rich, while the conservatives and the Republican Party heavily lean towards a more balanced flat tax. However, after extensive research and focus on what would be best for the equality of individuals, the nation and its economy, this paper will firmly prove that the top one percent should not be taxed any more than they are today.
Introduction: In the year 1862 during the civil war congress implemented the first income tax in America. It was 3% per year. However, it was not until 1913 when the 16th Amendment to the Constitution was passed, which granted the government the ability to impose a tax on individuals’ income. Since then it has been an issue to determine how much people should be taxed. Tax rates in America change drastically; for example, in 1963 a person in the highest tax bracket would give 90.8% of their income to the government. In contrast, that same person would only pay 28.0% in 1988. The tax rate for income tax is an issue because for every dime that someone pays in taxes is one dime that they are not able to spend themselves. Additionally, people
One person may see that the increase taxation on the poor and the decrease taxes on the wealthy is not an issue because the wealthy pay a lot of taxes already. However, many people don’t realize the fact that, yes, the wealthy are paying a lot of taxes because they make more money, but they can afford to pay more. Recently, in a CNN article, more than forty millionaires want their taxes to increase, which proves the fact that the wealthy have plenty of money to give back to the community. In addition, their just going to keep getting wealthier and wealthier by the
The United States tax system is in complete disarray. Republicans and Democrats agree that the current tax code is complex, unfair, and costly. The income tax system is so complex; the IRS publishes 480 tax forms and 280 forms to explain the 480 forms (Armey 1). The main reason the tax system is so complex is because of the special preferences such as deductions and tax credits. Complexity in the current tax system forces Americans to spend 5.4 billion hours complying with the tax code, which is more time than it takes to manufacture every car, truck and van produced in the United States (Armey 1). Time is not the only thing that is lost with the current tax system; Americans also lose great deal of money complying with the tax code. Resources that are currently wasted on record keeping, filing forms, learning the tax code, litigation, and tax avoidance. The cost of complying with the current tax code totals about $200 billion annually, or $700 for every man, woman, and child in America (Armey 1). The overwhelming consensus that the current tax system is inadequate has ignited the search for tax reform. There are numerous proposals for tax reform; one particular proposal brought forth by various conservatives is the idea of national flat rate income tax. The idea is to replace the current income tax with a single rate that everyone pays.
A progressive tax policy requires individuals with higher incomes and wealth to pay taxes at a rate that is higher than those with lower
Taxes are one of the most controversial, yet important factors that contribute to a successful and stable government. Taxes are defined as, "a contribution to state revenue, levied by the government on workers' income or profits or they are added to the costs of goods and services." These taxes help fund many government operations and they truly keep our country and government running. Taxes are often opposed and many people just don't see the need for them.
Requiring the top one percent to pay more taxes will generate more money that can be used to better education, healthcare, and social security. All of the following are very important to a society. For example, in an article by Travis Bennett titled “The Many Advantages of Education,” he notes, “the positive influence that [individuals] can have on society once they are armed with the knowledge and experience to make a difference is immense, and there is no doubt that education is key to a world that is also a great place in which to live” (Bennett). Education in specific is very important society. With education, there are so many different aspects of the world that can be missed out on. If richer individuals pay more taxes, they will be distributed to
According to the Congressional Budget Office (CBO), in 2006, the top 20 percent of income earners paid almost 70 percent of all federal taxes. "There's been a huge myth created that the rich aren't paying anything, the rich pay a much higher rate than the poor” says William McBride, the Tax Foundation's chief economist (Sanandaji et al). The boom of the 1990’s was in fact not caused by Clinton’s idea to increase taxes on the top percent of American’s , but led by outside sources such as; massive reduction in military spending, the fall of the former Soviet Union, advancement in technology and manufacturing ultimately making workers more efficient, decline in oil costs, and no major wars. Many people interoperate Clinton’s high tax policy as finally making the wealthy pay their fair share and creating a more stable middle class. However, Clinton cannot be given full credit for this economic boom, and in fact many ignore the long term effects of his policy. America is built on a equality and ambition that should not be restrained by tax codes. Taxes should not be raised on the wealthy because the wealthy provide a majority of employment, they can invest their saving from taxes elsewhere, and they entitled to what they’ve earned ("Should the Wealthiest 1%”).
Taxation has always been a major controversy. Just like any major corporation, the government is constantly looking to raise revenue. The easiest and fairest way to do this is by taxing the people. However, how the people will be taxed is always an issue.
Taxes in the United States include payroll taxes, property taxes, sales taxes, and a multitude of others. These taxes may be imposed on individuals, business entities, estates, trusts, or other forms of organizations. In general, there is a lot of inquiry on the current tax system. With endless loopholes, a regressed economy, and corruption there has been widespread anger on the current structure of taxation. Consequently, the wealthy have managed to become even richer despite the economic crisis. Furthermore, many taxpayers in the upper class have found loopholes to avoid substantial taxation or otherwise known as tax evasion. (Stewart 2013) Tax evasion has only grown over the years and with the national debt has become a major issue. What is more, is the intense complexity of the entire taxation process. Addressing all the issues and problems regarding the taxation structure is a meticulous and arduous process. With this in mind, politicians from both parties have tried to address individual issues within the taxation paradigm. Being that the United States has the highest corporate tax in the globe, politicians have tried to change policy regarding taxation on businesses. (Sullivan 2013) How...
Many of my thoughts throughout ethics have been towards the utilitarian side. This is where I would differ from that view. If I were to go by the utilitarian view it would be to tax the rich more than anyone. This money would then go to the poor where the money could be used up instead of sitting in a bank account. The utilitarian believes you do whatever it takes to make the most possible people happy. If you took the top five percent in America and taxed them more, then gave it to the bottom thirty percent, you have now helped more people then you did not help.
The four types of taxes this paper will discuss are income tax, sales tax, property tax, and user fees. Income tax was not permanently established until the 16th Amendment was passed in 1913. Most federal taxes had been previously derived from excise taxes on tobacco and alcohol and other consumer goods. The US Constitution, when written and still continues to, legitimize taxation in the United States through Article I, Section 8, that Congress has the power to lay and collect taxes, duties et al, pay the debts or provide for the common defense and general welfare of the United States (Cornell Law LII). Investopedia defines income tax as ‘a tax government(s) impose on financial income generated by all entities within their jurisdictions (Investopedia, 2014). Businesses and individuals are required to file an income tax return every year to determine if they owe taxes or qualify for a refund. That is determined by measuring the total income one earns to a designated tax rate, calculating one’s taxable income, which are some or all items of income reduced by other adjustments or expenses in that tax year. There are different subcategories of income tax; there is a federal income tax that is set by the federal government, apart from a few states, there is a state income tax that is imposed on their respective residents, as well as the possibility of there being local income tax ...
The government use of taxes plays a crucial role in today’s economy as well as personal finances, it has and will continue to leave its mark on the world we live in.
...ot let this inequality gap continues to rise; therefore, the government needs to tax heavily onto the rich people, and redistribute their money to the poor.