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
Hall, A. (2001, August). The Flat Income Tax and the Fair Tax Consumption Tax: A
Taxes are the dollars that we pay to government to supply the services that are not or can not be provided through the free enterprise system. Taxes have been around since the beginning of organized societies. They come in various forms. Most common are income taxes both federal and local government. These taxes are assessed on the amount of income a person earns. Other taxes come in the form of user taxes; these taxes are imposed on the people that are using the goods being taxed, such as gas tax, alcohol tax, sales tax, and luxury taxes. Property taxes make up the major revenues for local and city governments. Furthering the burden of taxation are taxes that are attached to such bills as utility bills and rental expenses.
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.
In order to bridge our differences within society we should all come into agreement that financial status should be paying the same, and if not then the lower-class should have more benefits since they are paying their taxes. As I have previously mentioned, there are many difficulties America still has to face. Growing up, most people were taught that racism was
There are a varying types of tax systems in existence. Our current tax system is called progressive. If you make less money you will pay less tax. Progressively, the more income you make, the more tax you will pay. There is some controversy surrounding the progressive tax system and alternatives have been
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.
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
It’s my opinion that something should be done to redistribute the income. The rich continue to get richer while the poor are getting even poorer. Even though some of us have the same opportunities but choose different routes of life most rich Americans are actually born reach.52 percent of Americans agree that the government should redistribute income. In order to redistribute the wealth it would consist of heavy taxes on the richest
Some of the causes of this inequality can be traced back to the roots of the mechanisms that were put in place in order to promote economic growth. This information begs the question, should the top one percent of the country be taxed more heavily? Although heavy taxation of the rich may seem like an optimistic economic solution, this may, in fact, hinder economic prosperity. Economic inequality is a serious issue that almost everyone in America faces. Causes of this inequality must be explored and understood in order to develop a solution to this economic crisis.
Why do all citizens of the United States have to pay taxes? Taxes have been a part of history since early B.C. There are many different ways of having to pay taxes. Some are very good, and some are terrible most of the U.S. think that taxes are shockingly bad ,not needed, and painful and distressing. While others believe they are used to help our society.
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 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 ...
Despite all of the negative hubbub, being wealthy does not warrant the need to pay more taxes than someone who is not. Being wealthy is a choice, money earned is treated as personal property, and life is not fair. Most people, if asked, would say that they have never been offered a 50lb gold brick in their life. While true,
According to Joe Messerli, writer for balancedpolitics.org, the top 1 percent of earners pay about 38 percent of total federal income taxes; the top 10 percent of earners pay about 70 percent of total tax revenues; the top 50 percent of earners pay about 98 percent of total tax revenues; while 48 percent of Americans pay zero federal income tax. Raising taxes on the rich is believed to help get rid of the United States federal debt. With all the money being brought in, we will be able to have a surplus after paying for necesssities. That surplus amount of money would go towards paying off the debt. Getting rid of this debt is very important because it could have the pottential to topple the U.S. and world economy.