The Progressive Tax System

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In the United States, an income tax is imposed on individuals on the federal, state and local levels. The United States uses a progressive-rate tax system. This system requires taxpayers to complete forms, such as the 1040 and to try to interrupt the tax code so it is beneficial to the taxpayer. Additionally, the progressive tax system is comprised of deductions, tax credits, and exemptions, which increase behaviors and activities that are focused on those areas. These tax adjustments can be allocated to provide additional relief to low-income citizens, or to encourage incentivized behaviors for citizens. While the progressive rate tax system has some obvious merits, there are also some significant flaws.
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An example of tax brackets will assist you in understanding the concept. For example, in 2013, under a progressive rate tax system, taxpayers that filed under a schedule X-single who earned up to $8,925 fell into the 10% tax bracket. Other schedule X-single taxpayers who earned greater than $400,000 in 2103 fell into the 39.6% tax bracket. Due to this example; opponents of the progressive tax would argue that this tax system penalizes taxpayers for being successful and having a high income. Due to this penalty, taxpayers are less likely to strive to move up tax brackets because of the increase in tax rates. Another disadvantage of the progressive tax system is the concept of bracket creeping, which is related to higher inflation, causing a taxpayer to enter into a higher tax bracket, with no real increase in income after adjusting for inflation. This increases the tax burdens for taxpayers who are near the top-end of their tax brackets. Bracket creeping also adjusts the inequality in income after

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