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“Progressive Proportional and Regressive Tax System"

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“Progressive Proportional and Regressive Tax System"
Throughout history, every organized society had some form of government. In free societies, the goals of government have been to protect individual freedoms and to promote the well-being of society as a whole. To achieve those goals and meet the expanses all governments need some revenue, and that revenue is raised mostly through taxes. In USA, governments levy several different types of taxes on individuals and businesses. The Federal Government relies mainly on income taxes for its revenue. State governments depend on both income and sales taxes. Most county and city governments use property taxes to raise their revenue. Nearly all tax structures contain two basic parts: the tax base and the tax rate. The tax base is the amount to which the tax rate is applied to determine the tax due. The tax rate is basically a percentage rate applied to the tax base, and it can be progressive, regressive, or proportional. Progressive taxation refers to a tax that takes a larger percentage from the income of high-income people than it does from low-income people.
And this is a basic principle underlying the income tax laws of the United States - people should be taxed according to their "ability to pay." For example, a person making $200,000 in a year might pay 30% of his income in taxes ($60,000), while someone with an income of $30,000 might pay only a 10% tax rate ($3,000 in taxes). Most income taxes in US are considered progressive. What can be disadvantage of progressive tax? Well, some individuals may think that progressive tax is discouraging the success. Why to work hard, and try to increase income and wealth, when half of that will be “taken away” in taxes!? It is simply unfair! Because the taxes are then redistributed to poorer individuals through government aid programs, some see this as socialism. But despite

opposition most economists believe that progressive taxes are the best form of taxation, because the lower class individuals, who are

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