Effects Of Progressive Tax In Kenya
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 …show more content…
The revenue was then financially subsidies to small and medium enterprises which enabled them to easily enter the market and reduced unemployment rate. This policy has enabled to create million jobs lifting at least millions of Kenyans from poverty and expand social protection. Increasing top tax rates would result in more efforts for the entrepreneur who wanted to make a difference. Johnson ‘s (2014) study have found the following: The very rich are the “producers” and all the rest of us are just parasites and slackers who feed off their “work.” So it will be very good for our economy to get them working harder by taxing them at 90%! You may have heard about those 25 hedge fund managers who brought in an average of $1 billion each last year – an amount that would have paid for 658,000 teachers — while the rest of the country suffered through a terrible economy. If we had a top tax rate of 90% they would “only” take home $100 million or so each – in a single year. And we could have 658,000 more teachers. So it’s a win-win.
However High Taxation seemed to have a trivial effect or paradoxical effect some