Can You Make $ 500000 A Year? Essay

1153 Words Feb 29th, 2016 5 Pages
Cannot Continue You make $500,000 a year. Yippee! You bring home $302,000. What? Taxes. It’s called taxes. Believe it or not, tax, especially the income tax, is a heavily debated topic with significant consequences. Should there be an income tax at all? If so, is the graduated or flat system better? After some consideration, the answer to these questions becomes quite clear. An income tax is necessary and appropriate to fund constitutionally authorized government responsibilities. However, the existing system should be replaced by a system that allows more economic growth. So, what is income tax in the first place? While multiple types of income taxes exist, their general ideas remain the same: the government takes away a certain percentage of a person’s income to use for government projects. The Income tax system currently utilized is called graduated tax. In this tax structure, people with lower incomes are taxed by a lower percentage of their income than people with higher income. As a result, the seven tax brackets and rates range from 10% to 39.6%, depending on your level of income (“2016 Tax Brackets”). For instance, a single person making $35,000 a year, would fall into the 15% tax bracket, but a single person making $415,000 would fall under the 35% bracket. However, another possible system, the flat tax, sets a certain percentage, and taxes all people based on that same percentage of their income. The wealthier people still pay more, but they are taxed…

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