Question

Politics Questions

2) Why are taxes on property considered a regressive tax?

3) Why is gambling considered an acceptable alternative to new taxes?

Answer 1

2. A regressive tax more severely affects people with low incomes than people with high incomes because it is applied uniformly to all situations, regardless of the taxpayer. While in some cases it may be fair to tax everyone at the same rate, in other cases it is considered unjust. As such, most income tax systems use a graduated schedule that taxes high-income earners at a higher percentage rate than low-income earners, while other tax types are applied consistently.Property taxes are inherently regressive because if two individuals living in the same tax jurisdiction live in properties with the same values, they pay the same amount of property tax regardless of their income. In practice, however, they are not purely regressive as they are based on the property's value. In general, low-income earners are thought to live in less expensive homes, thus indexing property taxes to income in part.

3. Gambling income is a taxable income almost always. This includes cash and fair market value for your winning item. By law, betting winners must reveal on their federal income tax returns all of their winnings. Depending on the amount of your winnings, you may submit one or more W-2 G forms that disclose the amount of your winnings and, if any, the amount of tax that has been withheld. These forms will be needed to prepare your tax return The institution or payer may be allowed to withhold income taxes depending on the amount of your winnings and the form of gambling. In general, it is necessary to withhold 25 percent of the amount. In some cases, instead, a 28 percent backup withholding is required. If your betting winnings are stripped of vat, you must receive a Form W2-G from the payer.