Most people don't fully understand the taxation system and question the validity of the system the United States currently has.
If the assignment doesn't specify, you can choose any you want. It may depend on whether you've already decided to argue that taxes are fair. 1 Ilie-melas. Nicholas Ilie-Melas. 11/4/ English. Puretz. Taxation of the Church. The freedom of religion is one of the United States citizen's most sacred. 1 Ilie-melas. Nicholas Ilie-Melas. 11/4/ English. Puretz. Taxation of the Church. The freedom of religion is one of the United States citizen's most sacred. Check out our essay example on Extra Tax on Fast Food to start writing!.
However, I believe that progressive https://edu-essay.top/1c/1401-dissertation-revue.php is the best system for the majority of society. The progressive taxation system is most evident in the income taxes; the tax is levied at a rate that increases as the quantity of income increases.
This system was devised to collect a greater proportion of tax revenue from wealthy people reflecting the "ability-to-pay" principle. Usually, progressive taxes are the stabilizing force in periods of inflation or recession because the amount of tax revenue changes more than proportionately with the increase or decrease in income.
In an economy where the prices and incomes are rising, the dollar value of tax credits and allowances remain constant. However, as individual income increases, the taxpayer is moved into a higher tax bracket.
This means that a greater percentage of their income goes toward taxes. At the same time, the government's tax revenues rise. Simple put, the higher the taxpayer's income, the more money given to the government to spend on programs and strengthen the overall economy.
By either reducing tax rates or increasing spending, the government can stimulate or restrain private demand. There are negative effects to progressive taxation. During inflation, it can actually hurt the people that this system is trying to help by shifting the tax burden to the "less able" and increasing the power of the government to control the economy.
There is no real solution to this. Also, many believe that this type of taxation is punishing the rich for working and earning their money. This may be true to one extent, but a fixed rate for all people will cau
A Level Economics Synoptic Essay Guide: Plastic Tax