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As of now there is a debate over tax reform in our government, what is the best way to reform the Income Tax ?
The Income Tax was passed in Congress as a means to tax wealth and for many years use the Progressive Tax Table. Here is the definition:
Progressive tax. In a progressive, or graduated, income tax system, taxpayers with higher incomes are taxed at higher rates that those with lower incomes.
Those in favor of this approach say that the greatest tax burden falls on those who can afford to carry it. Opponents argue that it imposes an unfair burden on the people whose ingenuity and hard work make the economy strong.
Dictionary of Financial Terms. Copyright © 2008 Lightbulb Press, Inc. All Rights Reserved.
Some people want a flat tax, which I believe is unfair to the working man. A debate in Congress on the above would help close the gap on the deficit if corrected to bring in more revenue as was done after WW11 and at which time this Nation had one of its greatest economic growths on record.
Income tax here is meant to be the legal definition of Income, which the courts have ruled on. Income Tax is different than Withholding Tax. To discuss this you must know the difference.
5 Answers
- Anonymous1 decade agoFavorite Answer
A flat tax levies a higher tax on the poor who cannot afford it.
Unless you drop it down to 10% for everyone which completely destroys and defunds all social programs and most military funding.
The progressive tax system is an ugly solution to an ugly problem.
- 1 decade ago
Well the small 1%-2% make up a huge number of the consumer spending that goes in in this country (I beleive 70 something percent), so the thinking is that the spenders are keeping our economy afloat. In my opinion the wealthy and everyone else are entitled to as much money they earn as possible, however just because the wealthy are rich does not mean you should tax them heavily, it is not fair. In a way it is communist. The wealthy also supply America with jobs, therefore they get a tax break. It is a choice after all whether you wish to be rich, poor, or somewhere in the middle. That is what is great about America, you have choices that can be made by you, not the government. I'm going to be honest here and say that my family is well off. My dad is a corporate attorney who works in Cincinnati and we live in a nice brick house in the Kentucky suburbs, but it is a lifestyle choice. He is also not open to the idea of paying for other people to live just because they chose to be poor and lazy. Don't get me wrong, there are some people who lost their jobs, got cancer and have outstanding medical bills,etc. and I feel for them. Our society thinks that being poor is o.k. when it is not ok to live off of other people's paychecks. In this country you are better off being poor than you are wealthy. In this fragile economy DO NOT tax the wealthy.
- TheOnlyBeldinLv 71 decade ago
How is a flat tax unfair to the working man? Any flat tax system is going to have a large exemption/deduction and will only really tax disposable income.
The current tax code doesn't hurt the rich; it hurts the people who want to be rich, especially as the biggest jump in marginal rates occurs just as one is climbing into the middle class.
The nation didn't rebound until well after World War II, as inflation went through the roof in the years immediately after the War.
- Anonymous1 decade ago
A flat tax will eliminate the loopholes that have more benefit for the wealthy.
