Growing Taxes, Growing Inequality

In this section of the paper flat tax will be compared with our current tax system in order to distinguish if differences it will make in the United States after its implementation. Along with that, the similarities between a flat tax and progressive tax will be noted too. As it is understandable that the ultimately targeted population for the flat tax is the upper class however when it comes to flat tax vs. progressive tax in the United States progressive tax system has been more welcoming than another method. However, as stated by Piketty and Saez (2007), in the United States the federal tax system has undergone three historical extreme changes which have pushed the federal tax system towards a less progressive side. Such in progressive tax system has provided the leverage of lower tax rates which benefits the one percent of Americans but not the majority of the American population. So although it is well circulated that the progressive tax methods have specific tax rates that ensure the higher

The arguments regarding federal progressive income tax has been represented to us through the United States Supreme Court, on the floors of congress, and in media. The revenue from taxes reached the objective of financing wars from the Civil War through World War II. At the same time deteriorating the economy with fewer dollars that could be used on imports, exports, and services (Henchman). Today, the United States deficit is $18,800,241,350,538.12 this is a grand total of 58,405.32 owed by every man, woman, and child (Brown). The legal illusion is presenting the question, is income tax legal? There are Americans today who believe income tax is not legal and stand by their beliefs in a movement that has cost many individuals considerably. I am interviewing such a person, his name is Bobby Ray and the history he presented to me was interesting, and has left me with more questions than answers.

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

Income inequality is one of the greatest problems facing the United States today. It is important for everyone to understand what this means and why this is a problem.

Vermont Senator and presidential candidate, Bernie Sanders, said it best when he said “A nation will not serve morally or economically when so few have so much, and so many have so little.” This quote perfectly describes the issue that The United States is currently dealing with: income inequality. Income inequality is the gap between how much money is made by the rich and everyone else in the nation. It also refers to the unequal distribution of wealth among people in a population. According to the Bureau of Economic Analysis, the gross domestic product (GDP) in the United States has steadily been rising, making it seem as though economic growth is stable (Inequality for All). However, it does not take into account the increasingly widening gap between the 1% and the 99% of the nation’s population. Government officials should pay closer attention to income inequality in The United States because ignoring the issue ultimately hurts American citizens.

In response to the article, some the information was new but a lot of it not surprising.  It was surprising, however, to read that although Mr. Naets is somewhat more educated and most likely in a higher tax bracket than his parents were, his standard of living is a lot lower than that of his parents.  That is alarming only because we have a lot more opportunities available to us through networking or technology and on a scale that was never available to our parents. Also in Mr. Naets case, he and his wife earn well above the national average which is also alarming because you would think that someone in such a position would not be as worried as someone of the opposite spectrum. It is discerning to think that no matter how hard we strive to for a better life, we will always feel that is not enough.

Currently, the United States ' taxation system is progressive, which means the more money a person makes, the more that person is taxed. According to the Congressional Budget Office 's website,

There are three different types of tax systems presented in this article: Progressive income tax, Flat tax, and the Fair Tax. The progressive tax system is what we have in the US and is common in countries across the world. It bases the percentage of income tax you should pay by the amount of income you receive. Basically, if you have a large income then the rate of tax you will pay is larger and, furthermore, if you have a low income you will have a lower rate to pay. Many conservatives dislike this system because it forces the top percentage of taxpayers to pay a majority of the tax revenue. “According to the Tax Foundation, the top 1% of taxpayers have consistently paid more in federal income taxes than the bottom 90% since 2003…” It treats people differently and it allows for

One theory about the use of the progressive taxation is that people or businesses who earn the same or a similar amount of money should be taxed in the same or a similar way. A good example of that theory states that two individuals making $75,000 per year should be taxed the same amount, regardless of how they earned their income. While most countries have some form of progressive taxation, it is usually combined with other taxes, such as a sales tax, and few countries treat all income as exactly the same. This kind of taxation is still in effect today, bigger corporations are taxed more than the smaller mom and pop businesses.

The current widening income inequality is due to the substantial income disparity between the top and bottom workers in the U.S. economy. General decline in wage endangered the standard of living for low income family as they struggle with a tightened budget. In order to battle income inequality, policy makers must raise the income of the working poor by expanding tax credit program and increase its effectiveness through major modification.

Income inequality has been an ongoing issue that has affects many American citizens for decades. Some Americans are more affected by income inequality than other Americans. This is an unfortunate fact, but there seems to be no easy solution and it seems it is getting worse. American citizens are losing hope in the system, and their voices screaming for change that benefits all, are rarely heard.

In my opinion as to whether or not the current federal income tax structure is fair for most Americans is that it is not fair. The following information will provide support for my decision. The main federal tax brackets are for single individuals, married individuals filing separately, married individuals filing as a couple and individuals filing as a head of household. In the financial year 2014, the lowest tax bracket paid a rate of 10% on income up to $9,075 while the highest bracket paid an average rate of 36.4% ($406,751 and above). Most individuals pay taxes across several tax brackets, and as a result, they end up with the progressive tax structure. In the current progressive federal income structure, individuals with a lower

The United States economy, as known by all, is not in its best shape. One way in which the government gains money is by imposing taxes on people. There are many taxes that are placed on different things that everyone needs or already has. The United States uses a taxation system which is criticized by many. The system used in Progressive Tax; however, many people believe the system of Flat Tax, or Proportional Tax, should be the system that is used for taxing.

We have all heard the famous quote by Benjamin Franklin who stated, “In this world nothing can be said to be certain, except death and taxes.” (“Benjamin Franklin Quotes”) We find this to be true as we begin working and feel the pain of money being taken from our paychecks. Then we face the chore of having to file income taxes yearly. Although there are many taxes we are subject to, most people are referring to federal income tax when they complain about taxes. There has been debate for decades about the current system but there has been no agreement on how to fix it. The United States currently has a progressive tax code which means people pay taxes according to their earnings. This has been in place since the time of Abraham Lincoln. An alternative

The following section of this study will dissect the two opposing tax systems and analyze them through the lenses of two major ethical theories, Universalism, and Rawls’ Distributive Justice Theory. Both theories will discuss the three ethical questions presented in the beginning of this paper and present which theory most closely aligns to the principles of each theory.