The Importance Of Tax In America

1491 Words 6 Pages
Americans always want to pay low taxes, especially the rich who make millions or even billions and complain about how it 's hurting their businesses. However in reality taxes on the rich are among the lowest they have ever been. America has seen a steady tax decline on wealthy Americans since the Reagan administration while wages for the middle class have barely increased after adjusting for inflation. All while the rich claim that decreased taxes on the rich will lead to a better economy but when one looks back, the economy was doing the best when America had high tax rates on the rich and they paid their fair share. As a result, it brought in more revenue and increased government spending on the country 's infrastructure creating more jobs. …show more content…
There should be a fair tax system that gives all people equal opportunity and a progressive tax system that is fair to all Americans according to how much they make not how much influence they have on politicians. There should only be tax increases on the people who make more than 5 million dollars a year. The government should also close loopholes like S Corp Loophole which allow business profits to be exempt from corporate income tax, Carried Interest loopholes, Valuation Discounts loopholes, where people can get away with undervaluing their property. Especially since income equality has increased dramatically in the last few decades. This uneven distribution of wealth is put into perspective when one realizes that top 20% of Americans account for 80% of the nation 's wealth and the top 1% of Americans account for 38% of the nation 's wealth. As the Encyclopedia of Race and Racism further writes that it is hard for a person in the Unites States to move up the economic ladder, and people are more likely move down the economic ladder than move up. This uneven distribution of wealth or nonprogressive distribution wealth has led to the shrinking of the middle class and in turn a slow growing economy. Income inequality is seen in every nation not just America but America is one of the few developed nations where it is so high. Income inequality today has been at highest since the 1920s. This is in direct relation to tax rates on the rich where the tax rates are among the lowest they have ever been on wealthy

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