progressive tax fairness

1322 Words Sep 10th, 2013 6 Pages
Progressive Income Tax Fairness
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
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If so, should they have to pay equal or higher income tax rates to provide funding simply because “they can afford it”? Or should the burden of higher tax rates be places on low-income families, the same families that reap the most benefits of government spending? It seems that nobody in this day in age can come to an agreement on any political issue or decision, and federal income tax procedures are no exception to the rule.
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
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