The Tax System Of The United States - 1597 Words

Taxes are a required aid from individual incomes or business profits collected by the government that funds certain actions and services is provided by the government for the people. Taxes in the United States originated all the way back in the 1760s. The current tax system the country has is a progressive tax. A progressive tax is a taxation system where higher incomes get taxed at higher percentages than those with lower incomes. The tax system that was anticipated that the economy should switch to is a flat tax. A flat tax is a system where all income would have to pay the same percentage towards taxes regardless of how much money they make. This is a major controversy because of the major impacts switching the current tax†¦show more content†¦In addition, some supporters say that a progressive tax â€Å"assumes that the rich should pay more of the government’s expenses than the poor, which doesn’t mean that it’s the role of the government to redistr ibute the wealth to reduce the wealth difference between the rich and the poor. (Debate: Progressive Tax vs Flat Tax, 2010) A major liberal supporter of a progressive tax is Bill Gates. He argues that a progressive tax is the best possible tax system that the economy can have. Gates essential reason for supporting a progressive tax is he believes in order for a tax system to be fair, it must require those with the greatest capacity to pay to pay more tax than those with a lesser capacity to pay (Worstall, 2014). Also, as income increases, households have more and more income that’s not spent on basic necessities and thus can afford to pay more taxes, unlike those with lower incomes. In other words, a progressive tax helps the government gain revenue to support its society. As a result of people with higher incomes paying more money to the government, access money can go to those people who can t afford to help themselves. In addition, it helps create programs for medical serv ices, fund public education, housing assistance and other welfare programs. This revenue enhances the opportunities for its lower and middle class citizens (History and Debate of Progressive Tax). Nonetheless, some The Tax System Of The United States - 1597 Words Taxes are a required aid from individual incomes or business profits collected by the government that funds certain activities and services is provided by the government for the people. Taxes in the United States can be originated all the way back to the 1760s. The current tax system the country has is a progressive tax. A progressive tax is a taxation system where higher incomes get taxed at higher percentages than those with lower incomes. The tax system that has been proposed that the economy should switch to is a flat tax. A flat tax is a system where all income would have to pay the same percentage towards taxes regardless of how much money they make. This has been a major controversy because of the major impacts switching the†¦show more content†¦Also, as income increases, households have more and more income that is not spent on basic necessities and thus can afford to pay more taxes, unlike those with lower incomes. In other words, a progressive tax helps the governm ent gain revenue to support its society. As a result of people with higher incomes paying more money to the government, access money can go to those people who can t afford to help themselves. In addition, it helps create programs for medical services, fund public education, housing assistance and other welfare programs. This revenue enhances the opportunities for its lower and middle class citizens (History and Debate of Progressive Tax). Nonetheless, some conservatives think that progressive tax is socialist wealth redistribution and state theft because of what the access revenue is put towards. Conservatives also think that progressive tax is unacceptable because it creates a sense of class warfare, where the poor and rich don t get along with each other because of the large gap they have in taxes. They also believe the current progressive system hurts wealthy business owners because they are the ones who create jobs, therefore they are vital to the economy and shouldn t have to pay more because of their success. Many liberals still believe that theShow MoreRelatedThe United States Tax System1576 Words   |  7 PagesThe United States tax system has an extensive history that has transformed from a modest system to a complex taxation system over the years. From the beginning, the tax system has undergone changes due to past wars, inclusion of social programs, changes to social programs, presidential views, and economic fluctuations. Every tax year, the tax laws continue to change from the methods of the past. In the years of the 1600’s and the middle 1700’s, the English settlers were the dominant people whoRead MoreThe Tax System Of The United States1553 Words   |  7 Pagesfunds certain actions and services provided by the government for the people. Taxes in the United States originated in the 1760s. The current tax system the country has is a progressive tax. A progressive tax is a tax system where higher incomes tax at higher percentages than those with lower incomes. The tax system that was anticipated that the economy should switch to is a flat tax. A flat tax is a system where all income would pay the same percentage towards taxes regardless of how much money theyRead MoreThe Tax System Of The United States1597 Words   |  7 Pagesactions and services is provided by the government for the people. Taxes in the United States originated all the way back in the 1760s. The current tax system the country has is a progressive tax. A progressive tax is a taxation system w here higher incomes get taxed at higher percentages than those with lower incomes. The tax system that was anticipated that the economy should switch to is a flat tax. A flat tax is a system where all income would have to pay the same percentage towards taxes regardlessRead MoreThe United States Tax System1487 Words   |  6 PagesPolitics is the process in which negotiation and resistance is utilized to establish a stable society. 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If we incorporate a flat tax system we will be able to ensure fairness among all citizens, eliminate tax loopholes, and allow opportunities for business expansion. With this being said, we will be examining the strengths and weaknesses about the flat tax system and how it has been used into practiceRead MoreThe Progressive Tax System Of The United States Essay2092 Words   |  9 Pages There is an issue that has plagued the United States even prior to the founding of the nation. That issue is fair taxation. While the American Colonists were being taxed unfairly without parliamentary representation, average modern Americans are being taxed unfairly without legal representation. Some hold the belief that the progressive tax code employed by the United States to be fair as the wealthy pay a higher marginal tax rate. The operative word there being marginal. As the upper class typicallyRead MoreThe United States Tax System and Flat Tax Essay1892 Words   |  8 PagesThe United States Tax System and Flat Tax The United States tax system is in complete disarray. Republicans and Democrats agree that the current tax code is complex, unfair, and costly. The income tax system is so complex; the IRS publishes 480 tax forms and 280 forms to explain the 480 forms (Armey 1). The main reason the tax system is so complex is because of the special preferences such as deductions and tax credits. Complexity in the current tax system forces Americans to spend 5.4Read MoreProgressive Tax Systems in Europe and the United States1135 Words   |  5 Pagesprogressive tax would be the perfect tax structure to choose. This is a system where the tax rate increases as the taxable base increases as well. As we recall from history, President George Bush had enacted a tax cut from 2001 – 2010. Over this ten year Americas wealthiest had received tax cuts totaling almost half a trillion. By 2010 while Bush’s tax reductions were still in place 52 percent of the tax cuts had gone to the 1 perce nt richest whose average income was 1.5 million â€Å"Their tax-cut windfall