Taxes Should be Raised on the Rich

Hello, I am new to this website and if I make errors in regard to formatting I apologize. The way I understand the argument is this: You are for a flat tax - where everyone is taxed the same regardless of income. I am arguing for a progressive tax rate. People who make more money should pay more in taxes. I am not making the argument that people who make a lot of money should give away their money simply because they make a lot - I am making the argument that a progressive tax rate is better than the alternative flat-tax rate for moral and economic reasons. Economic reason: We know that low taxes spur business growth. This in turn allows for business to accumulate profit and have more money to employ people - thus stimulating job growth and the economy. With a low flat-tax rate, there will be additional revenue available to those business to expand their business and stimulate employment and economic growth. I am aware of that. The goal of Americans should not be to serve the economy. The purpose of any economy is to help serve the needs of the people - this is what the founding father of economics, Adam Smith, has said. With a low flat-tax rate the purpose is to serve the "engine" of economic growth without seeing what the result of that growth would produce. It would produce monopolistic companies dominating a particular sector in each and every market. Why? I'll show you. Company "A" is a small business. They make $10,000 a month. They are taxed at 10% and are left with $9,000. Let's say they reinvest half of the profits (which is what business do) back into their business to expand it. They grow at a rate that $4,500 worth of capital will allow. Now, let's take a look at company "B" a very large business. They make $50,000,000 a month. They are taxed at 10% and are left with $45,000,000 and reinvest half of the profits (just like the small business does) back into their business to expand it. We can see that the very large business will grow exponentially faster than the small business. What does this mean? By having a low flat-tax rate on a very high-earning business, they can achieve market dominance by offering their goods or services much cheaper than the competing businesses - and have the funds to grow new chains of their business everywhere. Now that they've achieved market dominance by way of producing more cheaply than the competition - and also by offering more availability by having the funds to create chains in towns or cities the small business did not have the funds to create, they are incentivized to produce low-quality, overpriced, products - with a disincentive to invest in research and development for discovering new technology to enhance the product, but only to lower the cost of producing it. With a progressive tax rate, it allows for more competition from the small business by slowing the rate of growth from the big corporation. This means that consumers win by having differentiated products, technological advancements to enhance the product, and superior-quality products competing for the demands by consumers. Moral reason: This one is actually quite simple. You could make the moral argument that you believe it is unfair to tax a large corporation more than a small one, but then you have to take into consideration of fairness to the middle-class, not just to the large corporation. If Joe makes $1,000 a month and pays a flat-tax of 10% and he is left with $900, then where is the fairness in taxing the large corporation the same amount, but keeping $45,000,000? A flat-tax harms the middle to poor class more than anyone, because they still need to buy groceries, food, gas, and other essentials but proportionally, have significantly less income to do it and less taxation means that those in poverty have less tax-funded assistance to help them pay for those essentials. Taxes are not complete waste as some seem to view them. With a progressive tax-rate, you not only have economic and moral reasons to support it, but also for the tax-funded goods or benefits its yields. Taxes are what funds education, police, military, infrastructure, national parks, social security, amongst many other critically important things relating to the well-being of Americans.