Progressive Tax

The current tax policy in the United States is very confusing and it is very costly for our government to administer it. It is in the best interest of our country and its citizens to revise or replace our current tax policy.

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.

If the government starts doing that it would be fairer because everyone is getting the right amount of tax based on their income. But right now the rich and poor have to pay the same amount of money and it doesn’t matter about their income. Right now the rich should not really care about the taxes because they are rich and it doesn’t matter to them. But the taxes do matter to the poor people because they have really less amount of income and a large amount of taxes will affect them. The government has all records of people’s incomes and other information, so if the government makes a rule that the people with more income pay more taxes and the people with less income pay fewer taxes, it would be much better. But the taxes go to the government and the government makes the America better by making newer roads, better environment, and

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.

The use of flat (proportional) tax rate seems like a fairer option in my opinion. The reason why I think this is because we talked in class that the more money you make the higher your tax bracket is requiring the rich to pay more and the poor to pay less in comparison. This is causing companies to go overseas rather than staying in America which in effect could cause less jobs in America in general. Secondly, I feel that it would make a simple system and allow everyone to know exactly how much their going to pay for taxes.

“I love paying my income tax! This tax system is so easy to understand!” said no United States citizen, ever. No one has ever said this because it is highly unlikely that no one actually enjoys struggling with the complexity of the current income tax system in the United States. The concept of contributing to the good of the community, county, state, and nation through taxation is not new, nor is it generally opposed by American citizens. Most tax paying citizens do not take issue with paying for police and fire protection, roads, and national security with tax dollars. However, what they do take issue with is the fact that the current tax code is a complicated nightmare. It is a bureaucratic mess of rules, regulations, and perhaps even infringements upon personal rights. Because of the complexity of the current tax code, the United States should implement a flat tax system for personal and corporate income tax to ensure consistent and fair taxation and to render the tax code as more user-friendly.

If taxes are proportional, the tax rate remains constant for any income level, whereas taxes that are progressive, its tax rate gets higher as the income level increases.

Another huge problem is the way that the tax code works. As Warren Buffett explains, the “tax code is tilted towards the rich and away from the middle class.” It’s actually upside-down those with more pay fewer taxes, than people with less. Though the top rate for wage-based income is 39.6%, the rate for income from investments (capital gains) is only 20%. That means wealthy people pay a lower tax rate than the rest of us. Examples include Buffett, whose tax rate is about 17%, while

Our current income tax system today is very complex, unfair, inhibits saving, investment and job creation, imposes a heavy burden on families, and weakens the integrity of the democratic process. It can't be fixed and must be replaced. The U.S. income tax code is a long and complex system. The income tax system is so complex; the IRS publishes 480 tax forms and 280 forms to explain the 480 forms. The IRS sends out eight billion pages of forms and instructions each year. The administrative costs of the tax system far exceed those borne directly by the IRS. Each year Americans devote 5.4 billion hours complying with the tax code, which is more time than it takes to build every car, truck, and van produced in the U.S.

"A revolutionary change in our tax system is fundamental to re-energizing the American economy and restoring the American dream" (Moore 1). Currently, there are two major plans being considered to try and fix the tax system in the United States. These two plans are the Flat Tax and the National Retail Sales Tax. "Both the Flat Tax and a National Sales Tax would replace today's discriminatory tax structure with a single low rate. Either plan would promote the kind of capital formation that America needs to boost workers' incomes and raise long-term economic growth" (Mitchell 1). This means that the flat tax would take away the savings from the government and pass them on to the citizens and businesses. By doing this, there would be a rise in long-term economic growth.

The issue of federal income tax policy has been one of hot debate and controversy for many years. Discussions and arguments on the issue have been presented on the floors of Congress, in the United States Supreme Court, used by politicians as political platforms, broadcasted in televised debates, and discussed around the dinner table of American families of various socioeconomic backgrounds for years. The Federal Government of the United States of America, like any governing body whether it be at a national, state, or local level, works (for lack of a better word) to generate revenue to make possible the funding of many public programs and services and repayment of national debt. Of course, the easiest

With a flat tax rate, people with a higher income will not have to pay as much as in a progressive system. People can actually make a substantial living without the worry of taxes pulling them back. Families would be able to spend more money to benefit the economy (satisfying our Republicans). The progressive tax system allows a family of four to hold and protect $18,000 of income after taxes, but a flat tax rate will help the family of four obtain twice the amount after taxes (Tate). In other words, setting a flat tax rate will decreased the poverty rate and create more jobs, because there is more money in peoples’ pockets,

A one bracket tax system just wouldn’t work; the need for a seven tax bracket system is evident, because not everyone has the same income as the other. The progressive tax system requires those who earn more money to pay more taxes so no one has it better than the other. If a person is making $100,000 and another is making $30,000, it would be harder for the person whose salary is lower because he or she would have trouble paying for the taxes, and in result have less money to support themself. However, with the seven bracket system there is a 25% tax rate on the person making $40,000 and about a 33% tax rate on the person making $400,000, which seems fairer and makes more economical sense. If there was just one tax bracket, the rich would

The progressive tax takes a larger percentage from the income of high-income earners than it does from low-income individuals based on the concept of ability to pay. By dividing taxpayers into categories based on income level it then allows the wealth of the country to be equalized.

Many believe that the current tax system is biased. People exclusively have this feeling when being taxed based on their income. It is believed to be discriminating that the harder a person works and the higher their income, the more that person should be taxed. To fix this, the government has proposed a fair tax system in which they adjust the taxes so everyone pays an equal amount of taxes no matter the person’s income or economic status.