Progressive Tax In The United States

In the United States of America, it has been proven over the years that progressive tax works for the american people becaue of its efficiency and equity it creates, which makes the progressive tax likely to happen and continue in the country. Teddy Roosevelt once said, “I believe that there should be a very much heavier progressive tax on very large incomes, a tax which should increase in a very marked fashion for the gigantic incomes.” History supports progressive taxes. They were effective in the 1950s and 1960s, when we had a 90% top rate and a strong middle class. There's a clear correlation: when the top tax rate decreased, inequality increased. A progressive consumption tax would not cure all bad parts of the tax, although it would reduce …show more content…
Americans would prefer to raise the tax money we need by using the taxes that have the excess costs. Mainly, americans will be richer by having a progressive tax, rather than using taxes which destroy more economic activity for the same amount of earnings made. Overall, the facts show that there is eiificiency with progressive tax, but moving on to the equity portion, the progressive tax systems reduce tax burdens on people who can least afford to pay them, and these systems leave more money for the people with low-wage earnings, 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 increase as earnings climb. Also, progressive taxes allow the people with the greatest amount of resources to fund a greater portion of the services, that all people and businesses rely on, such as roads and first responders. The fairness in a taxation system requires that those with the greatest amount of money to pay, should pay more tax than those with a lesser capacity to