Persuasive Essay On Income Tax

Taxation on income has been a very controversial. Ever since congress passed the 16th amendment Americans have had to pay income taxes. Large taxes on the rich first started in America during FDR’s administration. During this time such high taxes were necessary because of the need for money to fund World War Ⅱ. During this time taxation on the rich reached an all time high at 94% on the income of the wealthy. Once president Reagan took office he dramatically lowered taxes (below 70%). Some people argue that the top earners in America are taxed too much, where others argue that they are not taxed enough. According to Dan Pfeiffer “The income share of the top 10 percent has grown to 42 percent of our nation’s earnings.” This results in a small

The capital gains tax rate is a loophole that has costed the government an estimated $457 billion just between 2011-2015. The capital gains 15% tax rate was created as a way to encourage investing in the economy but, the wealthy use it as a way to avoid paying the higher rate of income tax. The very wealthy make a lot of their money from investments. This results in them bypassing the income tax that millions of americans have to pay every year and only having to pay the very comparably low capital gains tax. Often the rich get out of paying millions of dollars because of this tax rate. The rich will also sometimes put their money into offshore accounts to avoid giving money to the government. The Cayman Islands has been infamous for being a primary spot for tax evasion. This is due to their bank secrecy laws and the lack of regulation in their financial sector. It is estimated that they have roughly 1.9 trillion USD stored across 281 banks there. According to Robert M. Morgenthau (a district attorney) “Offshore tax evasion alone costs the United States government more than $70 billion annually.” All of this money is not being taxed by the government United States and is being kept by the extremely