Rich Should Be Taxed More
In every free market economy, there is a particular tax system which is implemented and has to be followed by the citizens of the country but every tax system comes with its advantages and disadvantages. The taxes that are implemented may be in the form of direct taxes such as the earnings of an individual, inheritance and other such incomes, while the indirect tax is levied on the purchases, sales, etc.
The regressive tax system is whereby the amount of tax that a person has to pay decreases as the income of the individual increases. This is a burden on the poor in the society who are crushed under the burden of the taxes because the tax payments take up most of their earnings as a result. A progressive tax system on the other hand implies that a person has to pay more in taxes as their earnings increase. This kind of a tax system is more favorable for a variety of reasons (Mccaffery).
Firstly, in many countries like the United States, there is usually a wide gap between the richer classes and the working classes. The income gap keeps on increasing if the tax system is regressive in nature because it falls more heavily on the poor and working classes and it eliminates their chances of climbing up the social and financial ladder. The regressive taxes may be in the form of the tax on the products we purchase for instance and it although it remains the same for both the classes, it falls more heavily and has adverse impacts on the poor classes because a much larger proportion of their...
This is because as the income and wealth of the wealthy and richer people rises, so will the amount generated by the government in the form of taxes. These rich people obviously have large incomes, which if taxed, would generate large sums of money. They also have huge inheritance sums which are also taxed and if a progressive tax is levied on them, then the government's earnings in this form will increase and this amount can be spent helping those that lie at the bottom of the strata in society facing financial problems and can also be spent in the process of development of the nation.
The amount of money generated from taxing the rich in society can be spent on the welfare of the country's population in order to increase the services provided to the public for their benefit. This might include the public schools with better quality education and services, infrastructure of the roads, public health and sanitation facilities and other such areas where this amount of money is to be spent (Messere).
This taxation of the rich can help reduce the burden on the owners of small enterprises and ventures who need more capital to start their business and require initial funds to set up their firms and businesses. In the initial years of their business, they need to inject more funds and keep transactions and spending to a minimal so they can be…
