In: Economics
13. In detail.
a. Wealthy members of the US society are taxed at the highest rates while a large percentage of non-wealthy Americans pay the lowest taxes and in many cases no taxes at all (see the last portion of the lecture). Explain why or why not you feel this is or is not fair.
b. Explain in detail how you would structure the tax system on
wage earners.
In this case, all the members of the US society architect at the
highest rates while a large percentage of non-wealthy Americans pay
the fewer taxes and in many cases no taxes at all so here why this
policy is applicable and why this policy is fruitful for the
economy and for the people of United States because there is a very
simple reason the wealthy person of the society or able to pay a
high tax because the earning and the productivity of the wealthy
person is very high so in this particular situation it is good for
the government to implement the Welfare policies in the economy by
taking taxes as revenue from the side of will the person but when
there is a policy of charging low taxes or zero taxes on the
non-wealthy person or the to a person of the economy then it is
good for the person who belongs to lower class to handle necessity
goods and necessities at optimum level and to survive according to
their available resources.
B. In my opinion, the tax structure should be progressive it means
as the income of the person increases then the tax rate should
increase as according to a particular slab and therefore the most
important thing is that up to a particular level there must be no
tax to a person for example if a person is earning $500 in a month
for $1,000 in a month then there should be no tax or very
reasonable off with tax on that person but if the person exceeded
the limit of $1,000 then the slowly increases up to a particular
level. For example, up to $5,000 and after that, there must be
another slab of the tax rate $10,000 and as on it will increase up
to a particular limit so this is the best policy which followed the
policy of equality in the economy under the tax structure.