Why can't everyone pay a set percentage of their income across the board?
2006-08-14 11:45:39 · 6 answers · asked by Anonymous in Business & Finance ➔ Taxes ➔ United States
Its called a progressive tax plan. The idea is that the more you earn the more you should pay. Its based on turn of the last century ideals and is outdated. It needs to go.
2006-08-14 11:51:11 · answer #1 · answered by Anonymous · 1⤊ 0⤋
What your talking about is a "flat tax". Some republicans would like to see our system set up like this. However, ours is, and likely will remain, a "progressive" tax structure. This means that those with more income pay incrementally higher rates on their higher income. The idea behind this is that those with more money have a better ability to pay (both in terms of dollar amount and percentage), and should pay more to support the society that has made them so fortunate. Some may see this as unfair, but I know I would love to be in the 35% bracket!
2006-08-14 11:55:25 · answer #2 · answered by Tax Man 2 · 2⤊ 0⤋
Our system is set up as a "progressive" system. The more you make the more you pay. They do this so the rich will pay more in taxes and tax the poor less. A flat tax would help many people pay less (a few would pay much less), but many wouldl have to pay more.
Some states use a flat tax (set percentage) for their state income taxes. Some use the progressive style the federal government uses. Some don't have income tax at all.
2006-08-14 11:52:25 · answer #3 · answered by cougarfan_jared 2 · 1⤊ 0⤋
"Progressive taxes" increase the tax rate for people who have more income. As opposed to a "flat" or "proportional" tax which is a constant rate for everyone. The idea of a progressive tax is that people who make more have a greater ability and responsibility to pay. The U.S. system does not tax people who make a very small amount of money, but escalates pretty steeply as income increases. The argument against progressive taxes is that it creates a disincentive to working harder or being more productive.
The website below offers a comparison of the two approaches.
2006-08-14 11:48:42 · answer #4 · answered by Anonymous · 2⤊ 1⤋
Because that would make sense and government does not make sense. If they had a flat tax rate with no deductions, people in the high tax brackets would actually pay more than they do now. It is a myth that the rich pay more in taxes. They offset their income with deductions and usually have little or no income!!!!!!!!!!!!1
2006-08-14 15:51:15 · answer #5 · answered by Daniel Z 6 · 0⤊ 1⤋
Because liberals think it's fair to punish people who "for the most part" took the effort to better themselves by educating themselves and/or coming up with a brilliant idea or company and whatnot, all the while becoming rich.
In a sense, it rewards lackies because they have this mindset that they don't want to cross this tax brackets and get more taken out of their paychecks.
2006-08-14 11:57:41 · answer #6 · answered by Just A Guy... 5 · 2⤊ 0⤋