More handpicked essays just for you.
What are the advantages and disadvantages of progressive tax
Flat tax vs progressive tax on revenue
What are the advantages and disadvantages of progressive tax
Don’t take our word for it - see why 10 million students trust us with their essay needs.
The United States’ economy, as everyone knows, is not in its best shape. One way the government gains money is by imposing taxes on people. There are many taxes that are placed on different items that the public needs or already has. The United States uses a taxation system which is criticized by many people due to not fully understanding the system. The system used is called progressive tax. However, many people believe the system of flat tax should be the system used for taxing. The progressive taxation system is the best system for the majority of society.
Many people would like to believe that the flat tax is so named because it will flatten their finances. That at least is the intended conclusion. A flat tax system is “flat” due to the fact that there is only one tax rate, while today’s system has various rates (Sahadi). Everyone pays at one certain tax rate (Foster). The flat taxation system typically was proposed as a replacement for the income tax, which is a progressive tax (Sahadi). A progressive tax is defined as “a tax whose rate increases as the payer’s income increases” (“Progressive and Regressive Taxes”). In other words, the tax is levied at a rate that increases as the quantity of one’s income increases. The progressive tax system mainly shows in the income taxes. Someone with a high income will pay more taxes than one with a low income (“Progressive Taxation System”). This taxation system was created to collect a greater proportion of tax revenue from wealthy people reflecting the “ability-to-pay” principle. Regardless of which tax system a society or country chooses, the government benefits from it. It is to be said that both taxation systems could be considered fair in their own way, with both having their adv...
... middle of paper ...
...Dec. 2011. Web. 13 June
2012.
two-three>.
Nunes, Glen. "Flat Tax vs Progressive Tax - Pros and Cons for the US." HubPages. HubPages, 4
Mar. 2013. Web. 14 Feb. 2014.
Pros-and-Cons-for-the-US>.
"Progressive and Regressive Taxes." Chuck Taylor. Charles L. Taylor, n.d. Web. 14 Feb. 2014.
.
“Progressive Taxation System: A Brief Study on Its Pros and Cons”. Progressive Taxation
System: A Brief Study on Its Pros and Cons. N.p., n.d. Web. 13 June 2012.
.
Sahadi, Jeanne. "What's a Flat Tax?" CNNMoney. Cable News Network, 24 Oct. 2011. Web. 14
Feb. 2014. .
The “Fairness of Taxation or Wealth Tax” is where taxes are calculated by the net worth of the person or the couple (household). This would be hard for tax collectors to determine each and every component of net worth of a person.
Should the American tax system remain the same, where individuals’ income is taxed based on how much one makes with loopholes and deductions? Should we consider a system that would eliminate progressive income taxes, taxing everyone at an equal rate through the Flat Rate Tax, or should taxes be collected through national consumption of retail goods and the Fair Tax System? Our current system of taxation is a varied percentage rate 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).
Mehan, C.. N.p.. Web. 19 Jan 2014. . . N.p.. Web. 6 Mar 2014. . Kirkland, Stephen D. "Should We Have A Flat Tax?." Business & Economic Review 49.1 (2002): 27.
(TRANSITION: But before we get into all of that, the questions I asked you for my audience analysis revealed that not all of you are as riveted by tax policy as I am-shocking I know-, so I will clarify some of the jargon I will be using. First the progressive tax is a tax system where the tax rates increase with income earned. Let’s say the first tax bracket is set at 50,000 dollars, and the first tax rate is set at ten percent, and the rate above it is set at twenty percent. So, if you make 70,000 dollars, the first 50,000 will be taxed
The author is a editor and writer for a textbook publishing company. She argues that there are pros and cons of the system that is in place now, as well the new proposed flat tax system. With the flat tax system it would be easier for businesses and individuals because the tax would be simpler making taxes easier. There would be more drawbacks with the flat tax system such as: fewer jobs for accountants—no tax deductions. States would also be allowed to implement their own taxes. For those reasons they believe that the current tax system is the best system and people would not support a flat tax. The circumstances that cause the chapter to be written is that there could be a need for new textbook to be written. The purpose of the article is to educate students about the government, especially in America, this chapter was about taxation. The audience are students of either history or politics. He believes it will not be used in America: “The plans sound straightforward and have much to recommend them. But convincing voters and taxpayers to embrace them is a monumental task. People complain about their taxes, and the thought of taxation taking on a radically different form is a lot for people to
Sahadi, Jeanne. "Health reform's tax bite." CNN Money. 30 Mar. 2012. Web. 7 Dec. 2013.
Williams, R. (2009, April 22). The Numbers: What are the federal government's sources of revenue? Tax Policy Center. Retrieved from http://www.taxpolicycenter.org/briefing-book/background/numbers/revenue.cfm
Trello, Julia. "Income Inequality: Views & Solutions From Experts" Finances Online Income Inequality Views Solutions From Experts Comments. Finances Online, n.d. Web. 16 Apr. 2014.
Web. 26 Feb 2014. .
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.
... middle of paper ... ... Online School Edition. 30 Nov. 2004 http://school.ebi.com/ebi/article?tocId=9274787>.
... middle of paper ... ... Web. 19 Apr. 2014.
In an ever-increasing globalized world, it is imperative that America remains competitive to attract businesses to expand to America, and to reduce incidents of American businesses leaving America to move to another country that offers a more favorable business environment. Data shows that corporate income taxes are the most harmful type of taxes for economic growth. Currently, the United States has the fourth highest statutory corporate income tax in the world, at 35%. The last major reform to America’s corporate income tax was decades ago in 1986, when the rate was slashed from fifty percent to thirty-five percent. When the reform happened, most of business income earned in the U.S. was earned by C-Corporations, thus the corporate income
Gerking, Shelby, and John H Mutti. Costs And Benefits of Illegal Immigration: Key Issues For Government Policy. 61.1 (June 1980): 71-85. Print.