Progressive Tax Vs Regressive Tax

America currently has a progressive tax system. This system is identified by the fact that there are percentage brackets which are determined by one’s income, as the income increases so does the percentage of the income being taken out. The progressive tax can be illustrated by a curved line going upwards on a graph plotting income bracket on the x axis and amount of money being taken out on the y axis. The flat tax is the proposed tax which is signified by having one single percentage throughout all income brackets this would look like a straight line on the graph explained above.

Throughout the entire existence of any form of government, there has always been taxes. Most of the time (if not all), people hate taxes. With this being said, the United States has adopted a progressive tax since its very existence. We believe that if our nation is placed under a flat tax system, our economy will operate more effectively. If we incorporate a flat tax system we will be able to ensure fairness among all citizens, eliminate tax loopholes, and allow opportunities for business expansion. With this being said, we will be examining the strengths and weaknesses about the flat tax system and how it has been used into practice.

When comparing the benefits and issues between the flat tax and the progressive tax, it is important to understand the way these two systems operate in today’s economy. The flat tax can be defined as a tax that requires every individual to pay the same rate of deduction regardless of their income. On the other hand, a progressive tax can be defined as a tax where the tax rate is increased based on the income a person earn. This system is operated through the use of tax brackets, where the levels of income are divided into different ranges with each range having a tax rate more significant than the range below it. Furthermore, when evaluating the efficiency of both of these tax systems, one may discover that the progressive tax system provides several different factors that contribute to the efficiency of the economy in United States.

For example, if the tax rate is seven percent and one person makes one thousand dollars they would pay seventy dollars to the government. While someone that only made one hundred dollars would pay seven dollars to the government; this they may deem unfair.

There are two basic forms of taxation within the United States: progressive, where the effective tax rate increases as wealth or income increases, and regressive in which the effective tax rate goes up as wealth or income decreases.

The tax system in the United States has changed throughout the years, with many attempts to make it "fair" or "equal" while at the same time generating enough income for the United States government to thrive. It is a complex issue, and a controversial one at that. While it may not be possible for our tax system to ever be fair, it is important to make sure it doesn 't put more financial stress and pressure on one group than on another.

Meaning that taxpayers pay more in taxes if they earn more in income. For example, taxpayers may pay 25% of their income in taxes up to a certain amount, and 35% of everything earned over that amount.

Democrats support a progressive tax plan. The basis of a progressive tax is to tax in accordance with

Before even considering any particular numbers, define precisely what is meant when we say that a tax system is regressive. Do the same for what is meant by progressive.

progressive tax code, employed by the United States, and is fair as the wealthy pay a higher

With that in mind, everyone would be getting the same treatment, if we had a flat income tax rate. Thus eliminating the form of conflict that is known as “unfairness”, or the belief that nobody is getting treated fairly. This conflict is one of the most viscous, as it will turn even brothers against one another.

In a Progressive Tax system, a larger percentage of income is taken from those who are wealthy or have a large annual income, in taxes. Those who have low incomes do not have as high tax percentage to pay because progressive tax is based on

The laws of society are applied equally to everyone, but equitable to the circumstances. The same holds true for taxes: those with higher incomes pay a larger percentage of their income in taxes than those in lower tax brackets. Although not equally applied, the tax laws are equitable. Democratic laws are written in such a way as to allow interpretation depending upon circumstances. “A thousand circumstances, independent of the will of man, facilitate the maintenance of a democratic republic in the United States”

In the true sense of the word, these are actually progressive tax plans, but they fall in between the current progressive plan and a strictly constant marginal rate.

Revenue that comes from state income tax is said to be progressive, that is because state taxes fall differently on different taxpayers depending on the taxpayer’s income level. Typically, the percentage of income tax paid rises as the taxpayer’s income does, thus the reason they are progressive. The opposite is true for sales tax revenue. These taxes are regressive because regardless the taxpayer’s income, tax rates remain constant. This is sometimes a disadvantage for poorer taxpayers because they have to spend more of their income on what they need (Sims, 2004). The allocation of these funds for elementary and