Should A Fair Tax Or A Flat Tax?

2557 Words Dec 22nd, 2016 11 Pages
In the constant debate over what should and should not be taxed and how much a person should have to pay in taxes, one issue remains constant. That is the question as to whether or not the U.S. should have a fair tax or a flat tax. This has been interesting for me because I hear a lot of debate on both sides about the legitimacy of both methods. There is an overwhelming feeling, fueled, in part, by the media, that wealthy Americans are not paying their fair share of taxes, when, in fact, that is not the case. In fact, an article from the directory reports the following statistics from the Office of Tax Analysis: According to the Office of Tax Analysis, the U.S. individual income tax is "highly progressive," with a small group of higher-income taxpayers paying most of the individual income taxes each year. -In 2002 the latest year of available data, the top 5 percent of taxpayers paid more than one-half (53.8 percent) of all individual income taxes, but reported roughly one-third (30.6 percent) of income. -The top 1 percent of taxpayers paid 33.7 percent of all individual income taxes in 2002. This group of taxpayers has paid more than 30 percent of individual income taxes since 1995. -Moreover, since 1990 this group 's tax share has grown faster than their income share. -Taxpayers who rank in the top 50 percent of taxpayers by income pay virtually all individual income taxes. In all years since 1990, taxpayers in this group have paid over 94 percent of all…

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