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Why Do Taxes Decrease Income Inequality?

Decent Essays
“If you work hard every day to support a family, shouldn’t you be able to keep more money”
In today’s society, people have accepted the fact that taxes are too high and there is an income inequality problem that needs to be addressed.
68 percent of Americans believe that the rich don’t pay enough in taxes and think that if the rich started paying more in taxes and the middle class get a cut it would solve income inequality.
The federal income tax is the highest it has ever been in these last 8 years since it was created in 1913 by President Woodrow Wilson.
Currently the highest earners in our nation pay a rate of 39.6%. This percentage was used in a simulation by Brookings Institute in conjunction with the Tax Policy Center to test whether or not raising taxes on the rich would work?
According to the
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Kennedy cut taxes on the top and bottom brackets of the income tax and proved to be a success in bringing money to everyone in the country.
One final example in 1980, then President Ronald Reagan said that cutting taxes on the wealthy pointed to the fact that more businesses would be created and bringing in more revenue to the government.
I believed that today if we were to maybe cut taxes on the rich by 10% we could have much more wealth and it would trickle down to everyone rather than having the federal government distributing it.
This would help our economy not only in the short term, but create more jobs and businesses.
Look at the inequality problem this way. If the rich aren’t paying enough in taxes, how does the federal government get money to send welfare checks to the poor class. How are the middle class receiving back what they paid the IRS on their 1040 form and most importantly how to we have any money to fund vital government services?
Why are we as Americans so blinded by the fact that the rich are somehow these evil people that don’t care about America and somehow are only protecting their interest and
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