Progressive Tax

America currently has a progressive tax system. This system is identified by the fact that there are percentage brackets which are determined by one’s income, as the income increases so does the percentage of the income being taken out. The progressive tax can be illustrated by a curved line going upwards on a graph plotting income bracket on the x axis and amount of money being taken out on the y axis. The flat tax is the proposed tax which is signified by having one single percentage throughout all income brackets this would look like a straight line on the graph explained above.

Throughout the entire existence of any form of government, there has always been taxes. Most of the time (if not all), people hate taxes. With this being said, the United States has adopted a progressive tax since its very existence. We believe that if our nation is placed under a flat tax system, our economy will operate more effectively. If we incorporate a flat tax system we will be able to ensure fairness among all citizens, eliminate tax loopholes, and allow opportunities for business expansion. With this being said, we will be examining the strengths and weaknesses about the flat tax system and how it has been used into practice.

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.

To begin with, Democrat Bill Clinton made the economy prosper by increasing and decreasing taxes. The Omnibus Budget Reconciliation Act of 1993, also known as the Deficit Reduction Act raised the income tax from 28 to 36 percent for those who earned more than $115,000 (Amadeo). Also, under this tax policy, those with an earning of $250,000 or

The tax system in the United States has changed throughout the years, with many attempts to make it "fair" or "equal" while at the same time generating enough income for the United States government to thrive. It is a complex issue, and a controversial one at that. While it may not be possible for our tax system to ever be fair, it is important to make sure it doesn 't put more financial stress and pressure on one group than on another.

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.

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 most perennially political issues in the United States is the question of how much Americans should be taxed. Indeed, discounted over taxes was one of the major motivating factors in the revolution that established the United States as an independent nation"("Extending Tax Cuts", 1). Since taxes are one of the biggest topics in politics, there is always going to be two sides of the subject, and Taxes will always strike controversy in our country. The topic of having the rich pay more in tax has a deep history to consider, and there will always be both supporters and critics who continue to debate this topic.

The main topic of this research paper is taxation. Seeing that this topic is pretty open, I’ve chosen to write about the proposed idea of Fair Tax. Along with a little bit of insight on Fair Tax and a couple highlights of history, I’ll try and explain some pros and cons as well as give my opinion on the topic.

In America, we enjoy freedoms that we often take for granted. We have the power to decide things for ourselves, such as our leaders, our rights, and our liberties. We have the ability to debate and evaluate the effectiveness and the relevance of a law or bill, and we must use this power when it comes to the methods of taxation. Currently, the US uses a progressive income tax as its means to raise revenue. Deborah Lee and Richard A. Grant, in “Counterpoint: Expanding Sales Taxes Helps the Rich, Hurts the Poor,” believe that a progressive income tax is the fairest and most constructive ways to fund the government, and that such a tax benefits the poor more than a sales tax.

progressive tax code, employed by the United States, and is fair as the wealthy pay a higher

The United States Federal Government currently functions on a “progressive tax system”. A progressive tax system is based on ability to pay and therefor requires members of higher socioeconomic standing to pay higher federal income tax rates. The idea is that wealthy people, whether they are wealthy as a product of their own intelligence and labor or wealthy by inheritance, can afford to pay higher tax rates and still maintain a quality of life well beyond what is considered livable or even standard. This procedure understandably creates a lot of upset in the upper-class community. According to the IRS, in 2007, more that 44% of income tax revenues came from the top 5% of earners and more than 50% came from the top 10%. In the same year, the 400 wealthiest Americans, bringing in an average adjusted gross income of $345 million paid an average federal income tax rate of 17%, whereas the average tax payer during the same time period paid only 9.3% of their gross income to the federal taxes. In 2010, about 45% of all

Tax policy is among the most influential drivers of economic development. Naturally, it’s also one of the most debated and pressing issues facing policymakers in the United States. Today, the U.S. federal tax system is generally progressive, meaning that the total federal tax constitutes a larger percentage of income for higher-income individuals and households than it does for those earning lower incomes (Piketty and Saez, 2006). However, not all individual taxes are equally progressive. Some are even regressive. For instance, payroll taxes for Social Security and Medicaid are regressive (Piketty and Saez, 2006). But the taxes responsible for generating a majority of government revenue are the individual and corporate income taxes. Both of these taxes are progressive, which yields an overall tax system that is

In response to the need, the Tax Reform Act of 1986 was enabled. The reform was intended to be revenue neutral, but broaden the tax base previously held. Congress had depressed marginal rates, and concurrently got rid of tax shelters, tax preferences, and other opportunities for tax avoidance. It now seems what worked as great solution in the past is not working now, “The Tax Reform Act of 1986 has not proved a stable outcome: Congress has since narrowed the tax base and raised income tax rates. Internationalization of the economy raises the question of whether corporate income taxes can be relied upon as a stable source of revenues. Moreover, the tax system is also under continual reexamination because federal deficits of $300–$400 billion a year are now commonplace…” (Greatz, 2007, p.