Question

The tax system has long been debated with regards to fairness. Of course, no one likes to pay a large tax bill, but the central question in any discussion of tax policy includes questions about fairness and who should pay, and who should reap the benefits? Provide your reasons. Then consider a similar system for class grades. For example, assuming only a small percentage of students in this class score an A, should the same concept be used for redistributing (or keeping) the grades each student receives? Provide your reasons.

Please no copying and pasting from the internet. I would like to understand the topic. Thank you.

Answer 1

The just and equitable form of tax system is one having a graded system wherein taxpayers who are having a higher taxable income are taxed more. This is fair from the point of view that rich people should contribute more to the overall development of the society through taxes and the taxes being employed for public goods. While the less well off persons should not be burdened with the same tax burden as a rich person, and his contribution towards the overall tax collected should be proportionally lower. Thus this system ensures equitable distribution of taxes based on personal incomes. This is considered just as people might earn less inspite of having worked harder or having more potential because of the kind of work they do and the education they have and hence they should not be burdened with the same amount of taxation.

In contrast, the concept of redistribution of grades is not fair or equitable as that disincentivize students from working hard. And unlike the labor market which may be imperfect leading to unequal earnings, the grades obtained are directly proportional to the amount of hard work and effort put in by students and there should not be any cross subsidization of that effort and grades.