Progressive Income Tax Policy

Last holiday season I thought I was getting a great deal on an airline ticket home for the holidays using a discount airline. As a matter of fact, I arrived to the airport and proceeded to check-in, and it turned out there were multiple hidden fees (i.e. carry-on baggage fee, checked-baggage fee, a fee in order to get a seat on the flight ect.) that added up costing more than a ticket on a regular airline. As a low income earner, in the short run I was intrigued to get a good deal on an air plane ticket, but in the long run I was worse off. Moreover, this scenario resembles an issue in the Unites States income tax policy. Progressive taxation exists to alleviate the gap between high and low income earners, and in the short run progressive …show more content…
Essentially any tax is as good as it is enforced, and flat income taxes simplifies taxes. This issue is prevalent because progressive income taxation can become very complex, and many high income earners find it cheaper to spend money to find “loop-holes” in the tax system which will allow them to pay less of their income to the government. As a result, this causes inefficiency, and potentially causes tax rates to increase which is not beneficial for anyone. Ultimately, progressive taxation is too complex and cannot be facilitated as effective as a flat or less progressive tax policy.
Income tax policy remains very controversial. The hidden costs as a result of progressive taxation causes it to be less efficient and effective. Opponents argue a less progressive tax policy will promote equality through encouraging high income earners to stimulate the economy’s growth through increased consumption and investment, stimulating the labor market, and is more effective that progressive taxation which will bring prosperity to all income