Progressive Taxation

Topics: Tax, Taxation in the United States, Income tax Pages: 5 (2015 words) Published: October 22, 2012
Progressive taxation rates are unethical and need to be changed. The media likes to say the rich need to pay their fair share and I will show that if everyone paid the same percentage of their income without all the loopholes the current tax system has the government would be better off. This is an ethical issue that needs to be addressed by our current and future leaders to help eliminate the extraordinary amount of debt our country currently has to reimburse. Utilitarianism is that an action is right if it tends to promote happiness and wrong if it tends to produce the reverse of happiness [1]. It also involves the happiness of the performer of the action but also that of everyone affected by it. This would lead the current system of progressive taxation since those involved in creating the current tax system believe it is fair to all involved. The poor would see the rich pay a higher percentage of their income to fund the government and the items that they provide. Unfortunately this country has been using this type of taxation and now it has a tremendous debt to repay. So our current taxation system must not be working if we are not taking in the amount needed to pay our yearly government expenses. Relativism is the belief that everyone has their own version of the solution to the problem. It is also a concept that states points have no truth or validity, but only a subjective value [2]. The discussion of progressive taxation is not one that many people want to change. Everyone that thinks a fair taxation of a flat percentage is afraid it will not promote happiness among those that would have an increase in taxes. This theory would allow us to give the chance to try a flat tax to see if indeed it would increase the income this country generates along with removing tax loop holes allowing some people to avoid paying what they should. My view is more of the relativism type of view. I believe that for our country to avoid a horrible financial crisis we must try to generate more income and everyone must pay their fair share which would be of an equal percentage of their income. Progression has been in use somewhere in the world for thousands of years. It is safe to say the debate on its merits goes back at least that far. At the present most nations employ some form of progressive taxation. The first time there was a federal income tax it was imposed in 1861 as a means of financing the Civil War. The tax rates were decreased after the war and the income tax was allowed to expire in 1872. The concept of an income tax was controversial so when a new income tax was levied in 1894 it was challenged in the courts. In 1895 it was found to be unconstitutional. It was not until 1913, with the ratification of the 16th Amendment to the Constitution, that the first constitutionally sanctioned income tax was enacted. The first income tax was a progressive tax [3]. Today, we Americans are paying the highest taxes in our nation's history. The current tax system is complex and includes several inequities. It penalizes those who are married by making them pay higher taxes than single individuals. Many Americans face a death tax that will claim a large portion of their estate after they die. We need to get rid of our confusing, unfair tax code and replace it with a simple flat tax with one rate with no deductions or special interest loopholes [4]. The overly complicated tax code creates an unnecessary burden on all Americans, with an annual compliance cost estimated to be $365 billion. The extensive nine million plus word document is complex and unfair. It inhibits saving, investment, and creating jobs along with imposing a heavy burden on American families.  At the same time, the tax code reduces economic growth.  The code is so complex with all of the deductions, credits, and other preferences added to the tax code by the special interest lobbyists. It is because of these loopholes, taxpayers with similar incomes...
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