A Brief Note On Progressive Tax And The Upper Class When Paying Taxes

1077 Words Nov 15th, 2015 null Page
Is there the same burden for people on minimum wage, big cooperation and the upper class when paying taxes? According to Wikipedia “Progressive tax is a tax in which the tax rate increases as the taxable income amount increases.” It was a contentious issue for individuals as it is based on how they define equality. “Progressive tax was introduced and implemented in 1978 in Britain by Prime Minister William Pitt. It was now used in some countries to ensure that every one gets social benefits and opportunities.”

The social problem and the economic problem could be solved by higher taxation with the structure of tax code during 1950s, this could result in higher revenue for the government followed by economic growth. It would make cooperation to force themselves to plan and think about long-terms benefits rather then scheming. This would reduce crime rate as the higher top taxes strategy removes the incentive of making a fast buck. Thus resulted in more defined business model in the economy as business entrepreneurs and executives planed for solid companies and better business strategies for its customers and revenue. It was designed in countries to reduce the cost of freight, thereby saving businesses from loss of huge resources. (Johnson, 2014).

High top taxation reduced the budget deficit which removed this huge drag on our economy. This could eliminate the cutting of benefits on retired people just to pay its…

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