Progressive Income Tax

The reasons why a progressive income tax is a good idea is because it is: A fair tax system Reduces Income Inequality - Healthier Society Increases Government Revenues Enhances the Economy and Opportunity C1: A Fair Tax System [1] The progressive tax is the most fair type of tax system, because it takes into account the purchasing power of an individual after paying taxes. With my sample of rates, the less well off get to keep much of their income. This is economical and fair. Consider the three main economic groups, the poor, middle class, and wealthy. Poor: This tax system taxes the poor lightly. This leaves the poor with much of their purchasing power. However, since the poor spend much of their income on necessities, they are still able to afford them. Plus, since the poor have a higher propensity to consume, they stimulate the economy. Middle Class: The tax system taxes them not too heavily either. They can still spend much of their income after taxes, and much of this income is put back into the economy as consumption for necessities and comforts. Wealthy: The wealthy make much money already. They have the lowest propensity to consume, and therefore do not spend that much of their percentage of money on consumption, but rather they save and invest. The reason that they pay a larger percentage of tax revenues is because they are rich already. The top 20% of citizens own over 85% of the total net worth of the USA. It isn't inaccurate to also say that the top 1% owns double the net worth of the bottom 80% of Americans. [11] The rich pay more, but they don't pay much more percentage-wise, or pay less [10] than others. So don't complain that they already pay much, they can definitely and morally pay more. In fact, the top 400 taxpayers last year only payed an average of 18.11% in taxes. This isn't fair. [10] Analysis: With a progrssive income tax, economic demand can be stimulated by reducing the tax burden on lower incomes while raising the burden on higher incomes, allowing still more income to be collected, while the rich will not reduce consumption because of their already vast wealth. C2: Reduces Income Inequality - Healthier Society The progressive income tax (P.I.T.) reduces income inequality, which has been reported to have a number of societal benefits, such as lower homicide rates at all income levels. [2] With a steeper progressivet tax, income inquality decreases. Plus, Richard G. Wilkinson, an economist, has said that societies with more equal distribution of incomes have better health, fewer social problems such as violence, drug abuse, teenage births, mental illness, obesity, and others, and are more cohesive than ones in which the gap between the rich and poor is greater. [3] C3: Increases Government Revenues The progressive tax increases government revenues. The rich pay their fair share, while their purchasing power is still not affected, while the less well-off can spend more in the economy, and stimulate it because of their high consumption rates, which then improves tax revenue, and the higher consumption fuels a stronger, broader prosperity. Tax cuts for the rich does not create jobs, and if it happened to, it would still be in the national interest for more revenue for the government instead. [5] The rich don't create jobs like the middle class. Companies create jobs, which requires consumption. A progressive tax fuels consumption in multiple ways. With more income, the rich aren't going to create jobs. They just invest and save. This doesn't create jobs. To quote multimillionaire Henry Bloch (co-founder of H&R Block): (about tax cuts for wealthy creating jobs): “That’s so baloney,” Bloch said. “Rich people don’t create jobs. Companies create jobs.”…”You probably pay a higher rate than I do… and yet my income is probably many times what yours is,” Bloch said to FOX 4 Reporter Rob Low. [4] C4: Enhances the Economy and Opportunity The American taxpayers have paid for our nation's infrastructure. The rich just get rich off of what the previous taxpayers have paid for. They owe the taxpayers of this great nation a great deal, and should be paying it back, by paying their fair share. If they don't, people in the future will not have as much as an opportunity to climb the economic ladder as [the rich today] have. [8] ----Infrastructure Spending Government spending is an investment. It is your payment to live in a civilized, modern nation. Your taxes, as well as the taxpayers of the past, have paid for the infrastructure that we all -- especially the rich -- use. The highway system, the medical establishment, the communications system, airline system, space program, education system, the Internet, the national defense, consumer protection, public health care possibilities, the GI bill, Social Security and Medicare, the Federal Deposit Insurance Corporation, and all other assets we have come from the wise investments our parents and that we have made. What is does------The progressive tax system I have laid out in R1 shows the rates Loopholes are ended. All people pay, because we all benefit from this nation's infrastructure. Tax reductions are cut, and some such as the mortgage deduction are lowered, so the lower rates are substituted for some instead. The Affects of P.I.T.------With higher taxes on the rich, consumption is fueled for the middle and lower classes, improving the economy. Opportunity, coming in the form of a stronger economy and a vibrant infrastructure, is more prevalent. Also, the rich who got rich from the taxpayers pay some of their fair share, will still remaining rich. Rich Tax Cuts Don't Create Jobs! [4] [5] [6] [7] [11]The middle-class and the poor, through their consumption, create most jobs. If you give a rich person hundreds of thousands in tax refunds, they will save or invest with it. Companies expand and hire more with more demand, not more supply. [1] Conclusion: A progressive tax system improves consumption, fueling the economy. Tax deductions are removed, and higher taxes on the rich are instituted. The higher taxes on the rich improves society in many different ways, including better health and ethical standards. The rich pay their fair share, while remaining rich. The vast American infrastructure is fueled for later generations, and for ourselves, and we, as well as later generations reap the improved economic benefits. It is justifiable, fair, and makes broad prosperity, instead of prosperity for the few, which has created only large deficits and higher debt. [7] It is the better system. It is a modern, moral system. It is fair, proven, and needed. Vote Pro ***Plus, a Flat Tax is regressive, and obviously a regressive tax is regressive. My opponent then supports a bus driver paying more than Bill Gates or some rich guy. Sources: [1] http://conceptualmath.org... [2] http://psych.mcmaster.ca... [3] UK Hardback edition: The Spirit Level: Why More Equal Societies Almost Always Do Better. London, Allen Lane, 5 March 2009. [4] http://thinkprogress.org... [5] http://www.forbes.com... [6] http://krugman.blogs.nytimes.com... [7] http://www.addictinginfo.org... [8] http://www.dailykos.com...- [9] http://governmentisgood.com... [10] http://economix.blogs.nytimes.com... [11] http://www2.ucsc.edu...