Taxes Pros And Cons

Throughout history, The Republican Party have been in favor in tax cut, while The Democratic Party have been in favor in raising in taxes for those in the top of the income ladder. The wealthy are seemingly generating more assets, as they own more than 20 percent of all the household wealth of the country compared to the 1970s, where they only controlled 7 percent of the population. Upper income wealth has increased 101 percent; it was $318,000 in 1983 and increased to $639,400 in 2013. While, taxes for those in the top of the tax rate have decreased though law like The Tax Reform Act of 1986, which essentially lowered the top tax rate from 50 percent to 28 percent and raised the bottom tax rate from 11 percent to 15 percent. There have also been large rises in income inequality in the United State since the 1970s. With all of this being said, should the government raise taxes on the top 1 percent, will this have any effect in reducing income …show more content…
In my opinion, the government should not raise taxes on those in the top 1 percent of the tax rate because even with the increase in revenues. There is also a possibly in lost in economic growth. Although, Piketty points was convincing, according to the Gini coefficient, raising tax will not have a great effect in reducing the income inequality. To answer this question, we needs to determine the pros and cons to raising taxes on the top 1 percent of the tax rate. To start off, let’s begins with discussing the benefits of raising taxes on the top 1 percent. A benefit to raising taxes on the top 1 percent would be that the government would generate more revenues. According to a New York Times article called “What Could Raising Taxes on the 1% Do? Surprising Amounts”, written by Patricia Cohen, raising the tax burden to 40 percent from the current average federal tax rate of 33.4 percent, would