The Benefits of Progressive Taxation

1933 Words4 Pages
bulb-icon

Recommended: The role of morality in politics

Thousands of years ago, in ancient Athens, the city was relatively a paradise, they had civilization, they had theater, they had the arts; they also had an absolute flat tax, everyone paid the exact same tax. If a citizen did not pay the tax, he or she would be sent outside the city which was likely a death sentence. For the vast majority of people, this tax was their greatest burden and caused terrible social problems. For centuries, ancient Athenians explored this issue and discovered a moral insight; there is no economic gain without civilization. Wealth, whether in the form of property or a business, cannot exist in a state of anarchy because others can just steal it from the owner. The moral theory was since an individual could only become wealthy in a civilized state, the greater the economic gain one has achieved from living in a civilized society, the greater the duty to maintain the society through taxation. When they invented taxation based on ability to pay, the ancient Athenians invented democracy. Societies which are totalitarian, dictatorial, and feudal tend to have flat taxation on their citizens. Similarly to the plight of the ancient Athenians, Americans are faced with the choice of an flat and progressive taxation. Americans must choose whether to abandon the crucial ability to pay tax principal or recognize the greater obligation of those who benefit the most from society to contribute the most, and should realize the Athenian principle of taxation. Progressive taxation is more effective than flat taxation.

In order to explore the issue of flat taxation compared to progressive taxation, some background knowledge is necessary for a more thorough understanding of the subject. The United States Constitution spec...

... middle of paper ...

...sion. When a police of taxation results in overall economic prosperity, the system is more effective because it benefits all of the taxpayers due to the improved economy. In addition, progressive taxation provides incentives for vital economic activities. The interest on home mortgage payments is a tax deductible on the personal income tax which encourages the purchasing of homes and provides aid to homeowners. Dependents, such as children, may reduce the level of taxation to support families across the United States. Said incentives would not be present in a flat tax because it requires all members of society pay the same percentage of their income regardless of socioeconomic standing. Progressive taxation is more effective because incentives help the individuals participate for important activities, while under a flat tax system, such incentives would not exist.

Show More
Related

  • 18th Amendment Essay

    843 Words  | 2 Pages

    Sixteenth Amendment- Authorization of an Income Tax – Progressives thought this would slow down the rising wealth of the richest Americans by using a sliding or progressive scale where the wealthier would pay more into the system. In 1907, Roosevelt supported the tax but it took two years until his Successor, Taft endorsed the constitutional amendment for the tax. The Sixteenth Amendment was finally ratified by the states in 1913. The origin of the income tax came William J Bryan in 1894 to help redistribute wealth and then from Roosevelt and his dedication to reform of corporations. I agree with an income tax to pay for all of our government systems and departments, but I believe there was a misfire with “redistributing wealth.” The redistribution is seen in welfare systems whereby individuals receive money to live. This is meant to be a temporary assistance, but sadly, most that are in the system are stuck due to lack of assistance in learning how to escape poverty. There are a lot of government funded programs, but there is no general help system to help lift people up and stay up, so there continues a cycle of

    Read More

  • America's Tax System: Flat or Fair?

    672 Words  | 2 Pages

    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).

    Read More

  • Tax Reformation Common Ground

    1090 Words  | 3 Pages

    The tax policy in the United States is very confusing. When the tax policy was originally written in 1913 it was four hundred pages. Now, over the past ninety one years, that tax policy has evolved to over 72,000 pages. Since the tax code has become so lengthy and nearly impossible to understand, the topic of tax reform has been in the minds of many. Although, most barely think about tax reform until tax season. It is a controversial subject due to the impact a change in tax code would have on the American people. The two most popular and widely known stakeholders in this debate are the two major political parties in the United States, the Democrats and the Republicans. The two parties share absolutely no common ground on the subject of tax reform, other than thinking the other parties solution is wrong. The Democrats, in general, want to raise taxes on the wealthy, while Republicans, generally, want to cut taxes for everyone (Democratic Party) (GOP). Unfortunately, with the United States economy currently doing so poorly, the parties can no longer afford to remain at a standstill, some sort of compromise is going to have to be made. The implementation of a flat tax, and discarding the current tax system would be a compromise that both parties can agree on and will simplify the tax code, overall benefiting all Americans.

    Read More

  • Persuasive Speech On Flat Tax

    1141 Words  | 3 Pages

    (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

    Read More

  • Brief History of Taxing in the United States

    3332 Words  | 7 Pages

    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.

    Read More

  • Positive And Negative Effects Of The Progressive Era

    1579 Words  | 4 Pages

    From 1890 to 1920 was labeled the Progressive Era and responded to the social problems that arose from the Industrial Revolution that was sweeping across America. This social movement changed into to a political one and corruption ran high throughout the governments and political parties. Corporate greed was astounding and was keeping the general society at poverty levels. The wealthy Americans used their wealth to live lifestyles of lavishness that was being created from the modernization of America, while the poor had to sleep in the alleys and beg for food. Men and women were being worked 12 to 16 hours a day and children labor was rampant with no laws in place to protect the children workers. The Progressive Era sought to eliminate these negative impacts to society create solid education systems and safe work environments. Social reform was seriously desired and the progressives were destined to change the way society in America was being established by the Tycoons such as Andrew Carnegie, John Rockefeller, and Cornelius Vanderbilt. Constitutional Amendments were added during the Progressive Era to create social change and correct the political interests of America. Woodrow Wilson views on the ‘literary theory’ of checks and balances is simply a consistent account of what our Constitution makers tried to do;” he stated, “and those checks

    Read More

  • A Political Revolution: America's Ideological Beginnings

    2168 Words  | 5 Pages

    Reid, John Phillip. Constitutional History of the American Revolution / the Authority to Tax. Madison, WI: Univ. of Wisconsin, 1987. 33. Print.

    Read More

  • The Progressive Era And Social Welfare

    413 Words  | 1 Pages

    During class, the Progressive Era from 1890-1916 was discussed. The countless reforms happened in the Progressive Era were bound to be controversial. Nevertheless, based on our study, it was my contention that the Progressive Era was successful on account of the changes made on social welfare and on the role of presidents.

    Read More

  • Importance Of Plato's Republic

    1470 Words  | 3 Pages

    With a history of abuse of so the called, “untouchables” it should come as no surprise that when Socrates offers a caste system that questions of freedom and human rights come to the fore front. Socrates explains the false origins saying, “But when god made you, he used a mixture of gold in the creation of those of you who were fit to be rulers … He used silver for those who were to be auxiliaries, and iron and bronze for the farmers and the rest of the skilled workers” (pg. 108 415a). Socrates has built this, what he calls a noble lie, to convince the people of predestination, however; it is not clear whether Socrates believes this claim, or if he just uses is as a vessel to control the population so they may become perfect. What is clear is that this system is impossible. No one is specifically designed for a single purpose, or a specific skill. As well as the idea that people will lie down and do whatever they are told by the law. This lie will come crashing down on Socrates and his perfect city. While explaining the lifestyle of the guardians Socrates explains how people will live in his city, stating, “… no one is to have any private property beyond what is absolutely essential” (pg. 110 416d). This limitation of wealth and status may seem to be just, however; the limitation of one’s personal freedom jeopardizes of the people. Thus, the city becomes unfair to its people. The role of government should be to help its people, and by limiting its people, it loses sight of its role. Socrates continues explaining the life of the guardians and its people saying, “… they should impose a levy on the rest of the citizens, and receive and annual payment for their role as guardians which leaves them with neither a surplus nor a deficiency” (pg. 110 416e). This further limits the freedoms of the population, without funds to purchase an excess of goods,

    Read More

  • Private Property and the Rule of the Middle Class in Aristotle’s Politics

    1450 Words  | 3 Pages

    In that sense, private property is no longer a luxury but a necessity for the stability of the city, and the pursuit of the good life. Aristotle’s arguments for the rule of the middle class and the existence of private property are very convincing. He successfully shows that a government, which best allows its citizens to live the good life, must necessarily be stable. To achieve that stability, those who rule should be chosen because of their ability to maintain control when other classes challenge them, and for their reluctance to corrupt and start ruling for their own self-interest. The middle class was the obvious choice—the poor and rich could never unite to mount an effective challenge.

    Read More

  • The Flat Tax

    482 Words  | 1 Pages

    The current tax system that the United States uses contains several flaws. First of all, it is very complex. It is comprised of many various variables that can create loopholes. These loopholes can cause two equal income families to be paying very different tax rates. In fact, there are 480 different types of tax forms (Website). The current tax system is also very unfair for the wealthy. Because it is a progressive tax, it is higher for people who have higher incomes. People should not be punished for being successful. If a flat tax policy were instituted, then it would simplify the complicated tax system, create fairness within the economy, and promote a desire to thrive financially.

    Read More

  • Laissez-faire vs Government Intervention

    1571 Words  | 4 Pages

    The use of taxes is one of the government's favorite ways to make its presence known in the economy. While this method seems blatantly obvious, many of the ways the government uses the money collected by taxation is not. Some of the money it takes is used to fund other programs designed to "protect" consumers and to "create" jobs. Be...

    Read More

  • Classical Economics vs. Keynesian Economics

    1187 Words  | 3 Pages

    Keynesian Economics was developed and founding by John Maynard Keynes. He believed and wrote in his book “The General Theory of Employment, Interest and Money” that it is essential for the Government to play a vital role in economic stability. Keynesian theorist believe Government spending, tax hikes or tax breaks are vital in economic success. Keynesian assumptions include: Rigid or Inflexible Prices, Effective Demand, and Savings-Investment Determinants. Rigid or Inflexible Prices suggest that wages increases are easier to take while wage decreases hits resistance; likewise, a producer will increase prices yet when needed will be reluctant to decrease prices.

    Read More

  • Government Spending versus Tax Cuts: How Best to Stimulate Growth?

    1470 Words  | 3 Pages

    An increase in government spending or a reduction in net taxes is always aimed at increasing aggregate output (Y). The main aim is to stimulate the economy but this may lead to many problem such as inflations, budget deficit because of needed debt to finance the deficit. Before finding out which is the better options for stimulation of any economy we need to first be clear with the concept of multiplier.

    Read More

  • Canon of Taxation by Adams Smith

    2064 Words  | 5 Pages

    The famous literature on principles of taxation was embodied in Adams Smith “Canons of taxation”. Since then, economies have adopted (and adapted where necessary) these basic principles for what is regarded as the most important tool of fiscal policy.

    Read More

More about The Benefits of Progressive Taxation

Open Document