Question

Is the current progressive federal income tax used in the United States equitable?

Answer 1

A progressive tax is one that charges a higher tax rate for people who earn a higher income. The rationale is that people with a lower income will usually spend a greater percentage of their income to maintain their standard of living.

Progressive tax systems reduce the (tax) burdens on people who can least afford to pay them, and these systems leave more money in the pockets of low-wage earners, who are likely to spend all of their money and stimulate the economy. Progressive tax systems also have the ability to collect more taxes than flat taxes or regressive taxes, as tax rates are indexed to increase as income climbs.

Progressive taxes consider them to be discriminatory against wealthy people or high-income earners. Progressive income tax is effectively a means of income redistribution, only a small portion of government spending is devoted to welfare payments.

Progressive tax is considered "fair" in the sense that they are consistent and apply a rational approach to taxation. They differ, however, in their treatment of wealth, and each system may be called "unfair" according to who benefits or is treated differently. Progressive taxes treat the rich and poor differently, which is unfair and not equitable.