Would you consider rich people paying more taxes as fair?

Question

In some countries, they have progressive tax system. Do you think that system is good.

Answer 1

I think everyone should pay the same percentage of taxes on their income.

However, if a person is so poor that they are just squeaking by, I think they should be exempt.

I do think congress should start paying income tax.. I'm tired of their being able to weasle out of it.

Answer 2

Good question. The U.S. has a progressive tax system. People on the low end actually have a negative income tax rate (that's right they get more money back than they paid in through the Earned Income Credit) and people on the higher end pay 35% of each incremental dollar they earn to Uncle Sam.

Fairness is always in the eye of the beholder.

I like rich people. If you do the math you'll find that they'll pay large portion of the total tax bill whether the system is "progressive" as it is in the U.S. or whether its based on a flat percentage across the board. We should thank them for this.

I don't think that tax rates should be so high so as to discourage productive work. With rates that we have today of 35% of federal and another 5% or so on state taxes - I think we are pushing the upper bounds of reasonableness. If you start taking 50% or more of each additional dollar of income, working for that extra dollar becomes a whole lot less attractive. So the question becomes would you rather have someone earn that extra dollar and have $0.35 go to the government or would you rather raise the rate to 60% and then perhaps the person decides not to earn the dollar. In which case $0.00 goes to the government.

I like the idea of rewarding rich people by encouraging them to earn as much as possible. Most of them aren't the white collar criminals that we read about in the newspapers, just like most poor people aren't the carjackers we hear about. Most rich people are good, honest, hard workers who have become rich by figuring out ways to add value to society, which is good for almost everyone.

Think of a doctor. He invested a lot of time to hone his skill. When he saves your life, it might be expensive, but it's worth every penny. Take away the financial incentive for being a doctor and you might find that there aren't enough to save everyone who needs saving. If you were one of the people who couldn't find one when you needed to, you might be angry.

Answer 3

Sure it would be unfair if rich people pay the same number of dollars of taxes as poor people -- but there's not a country in the world with such a tax policy. Rich people under every system pay more taxes. Even in a flat tax system, obviously rich people pay a lot more. 15% of a million dollars a year is a LOT higher than 15% of $20,000, get it? As in, $150,000 versus $3,000. Is it fair that one citizen has to pay 50 times as much tax as another citizen?

But if you make differential tax rates too "progressive" you will wind up with the very regressive result that rich people simply evade taxes illegally. For example, the rate of illegal tax evasion is FAR higher in Europe than in the US.

Answer 4

No, progressive tax system it is not fair. What ever happened to equality?

Under a flat tax, rich people would still pay more taxes (especially if there are exemptions), and everyone would be treated equally. Rich people also pay much more sales taxes and property taxes. A progressive income tax only creates class warfare, resentment, and politicians using people to get votes. You see it in every election in the US. It does not matter how much taxes rich people pay, a politician wanting votes will always demand they pay more in order to create resentment among poor people.

Here are the US tax facts:

BREAKDOWN OF INCOME AND TAXES PAID BY CATEGORY

Income Category -- 2004 AGI -- % of all inc -- % of inc taxes paid
Top 1% ----------- Over $328,048 --------19% ---------------- 37%
Top 5% ----------- Over $137,500 -------- 33% ---------------- 57%
Top 10% --------- Over $99,111 ---------- 44% ---------------- 68%
Top 25% --------- Over $60,040 ---------- 66% ---------------- 85%
Top 50% --------- Over $30,121 ---------- 87% ---------------- 97%
Bottom 50% ----- Under $30,121 -------- 13% ---------------- 3%

So, if anyone in the US ever tells you the rich don't pay taxes, you will know they are ignorant or lying.
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Answer 5

The US has a progressive tax system. The rich pay more. Yes, it's fair.

There is a certain amount of money that is spent on things like food, clothing, utilities and other necessities. These necessities take up a much larger proportion of poor people's income than rich people's income.

The discretionary income should be the basis of taxes, and with rich people larger proportion of their income is discretionary. So they should pay more taxes.

Answer 6

I dont know of any country which has a flat rate of tax. Tax is charged as a percentage of income so those on higher income pay more tax.

But you asked about rich people. There arnt many countries that tax you on your wealth. They tax you on income, not wealth.
There are people on low income who save part of their income and build up wealth. And there are also people on high income but spend it all and so do not have any wealth built up.

Answer 7

I say it is. You make more money, you pay more taxes. I don't think it's fair for someone who makes 20,000 a year to pay the same taxes as a person who makes 100,000 a year.

But it depends if you are left or right wing.

Answer 8

I really dont believe in this "robin hood" thinking (taking more from the rich to serve the poor.) I believe that everyone should pay the same PERCENTAGE of taxes. It makes more sense. Rich people worked hard to get where they are... I think they deserve to keep their money.

Answer 9

Emm....torn between 2 choices.

I would say yes, but only because the richer you are, the more easier you are going to be able to pay taxes, afford stuff, etc, otherwise a riot can probably happen because low/middle class people would say it's not fair/ social injustice.

Answer 10

Rich people do pay more taxes. My 7.5 percent of my $17,000 car is considerably less the their 7.5 percent of their $80,000 car. Rich people buy the best of everything which is higher priced than what I buy.