Our taxes are the cornerstone of our government and economics as our taxes are used to “ invest in technology and education, and to provide goods and services for the benefit of the American people” (TurboTax). The money that we give to the government is our taxes and while they are bothersome towards the citizens in America, they do help out our government. In America, there are three kinds of tax systems, which are proportional tax, progressive tax, and regressive tax. Even though the government thinks these three systems are equal with one another, I don’t think so as the three tax systems are an economic flaw because they focus too heavily on classes of people and I believe that there should be only one tax system for out country. The
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One such benefit is that it increases government revenue and another benefit is that it encourages spending since for example, if the lower class buys more tobacco products, then “they will pay higher percentages of their incomes on tobacco taxes” (Nichols). However, the regressive tax system does have some major flaws that change how people view the regressive tax system. One flaw is that it heavily taxes the lower class while it barely affects the upper class, which is considered unfair. Another flaw is that being “ regressive in taxation may be either situational or structural” (Nichols). Situational regressiveness is due to the “ taxpayers ' circumstances, activities, or behavior” (Nichols), yet it is not an intentional feature of the regressive tax system. Structural regressiveness comes from “a decision by policymakers to deliberately apply a rate of tax on lower incomes that exceeds the rate imposed on higher income” …show more content…
Unlike the regressive and progressive tax systems, this tax system makes everyone equal in the regards that everyone pays the same amount of taxes. Therefore, this tax system is defined as tax equilibrium and it is characterized by “the unique proposal made by all above average income citizens and the unique proposal made by all below average income citizens” (x). In this this tax system, people are considered “below average income citizens propose a strictly higher tax rate than above average income citizens” (x). In my opinion, I do view this tax system as the tax system that promotes the most amounts of equality among the citizens who do pay taxes to our
One such benefit is that it increases government revenue and another benefit is that it encourages spending since for example, if the lower class buys more tobacco products, then “they will pay higher percentages of their incomes on tobacco taxes” (Nichols). However, the regressive tax system does have some major flaws that change how people view the regressive tax system. One flaw is that it heavily taxes the lower class while it barely affects the upper class, which is considered unfair. Another flaw is that being “ regressive in taxation may be either situational or structural” (Nichols). Situational regressiveness is due to the “ taxpayers ' circumstances, activities, or behavior” (Nichols), yet it is not an intentional feature of the regressive tax system. Structural regressiveness comes from “a decision by policymakers to deliberately apply a rate of tax on lower incomes that exceeds the rate imposed on higher income” …show more content…
Unlike the regressive and progressive tax systems, this tax system makes everyone equal in the regards that everyone pays the same amount of taxes. Therefore, this tax system is defined as tax equilibrium and it is characterized by “the unique proposal made by all above average income citizens and the unique proposal made by all below average income citizens” (x). In this this tax system, people are considered “below average income citizens propose a strictly higher tax rate than above average income citizens” (x). In my opinion, I do view this tax system as the tax system that promotes the most amounts of equality among the citizens who do pay taxes to our