still has one of the most progressive systems in the world, collecting the largest share of taxes from those at the top. While it’s true that some taxpayers - like Warren Buffett - pay a lower effective tax rate than many in the middle class, the U.S. People don’t like a progressive tax because it treats people differently: those at the top are charged with paying more, as a percentage of income, than those at the bottom.And, of course, progressive tax should encourage the distribution of wealth, making it less likely that dynasties would concentrate their wealth as they did in pre-Revolutionary War England. Offering tax breaks for those at the bottom should, in theory, give those taxpayers the opportunity to increase their wealth and work their way out of poverty. People like a progressive tax because it raises revenue by taxing those who can most afford to pay. Countries that use a progressive income tax system include China, Japan, Australia, France, Germany, Italy, Canada and the United Kingdom. Although our current system isn’t very popular at home, it’s perhaps the most common tax system used in developed countries around the world. Technically, you can create a progressive income tax system even when stated tax rates remain flat by using personal exemptions, tax credits and tax deductions to alter the effective tax rate. A progressive income tax is exactly what it sounds like: the rate of tax increases as income (however measured) increases. What is the difference between the flat tax, the Fair Tax and what we have now? Here’s a quick comparison: Rand Paul (KY) is also a fan of a version of the flat tax (it’s in his economic proposal) although it didn’t get much play during the debate. Mike Huckabee invoked the Fair Tax, not once but twice. Ben Carson alluded to a flat tax, which he likened to a tithe, and former Arkansas Gov. Almost all of the candidates touted the need to grow the economy and reform the Tax Code but offered little in the way of details about how to best do this with two exceptions: Dr. The GOP Debate last night was big on drama but short on specifics - especially when it came to the economy.
0 Comments
Leave a Reply. |
Details
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |