As defined in the oxford dictionary, tax is a compulsory contribution to state revenue, levied by the government on workers’ income and business profits, or added to the cost of some goods, services, and transactions. Inevitably, there are differences in income levels and living standards everywhere in the world, presenting variations in socioeconomic classes. Therefore is it fair that wealthy taxpayers pay more taxes than poor taxpayers?
Large Income disparities
In the past, when only corporations and the rich were taxed in the United States, the economy thrived and the income disparities were not as large as they are today. The burden of taxation on the poor and the middle income earners only becomes heavier with time due to the rich taking advantage and lending money to governments, putting the future generations in debt which further pressures the government to increase taxes.
Unfair placement of tax burden on the low and middle income class
The history of the US economy has shown us that taxing the corporations and the rich more than the poor leads to more progress for the entire nation. The USA is the perfect example for this as the federal government got majority of its income tax from the rich and corporations. Today, the same government gets only 25% of its income tax from corporations and the rest from the people. The burden of tax has been shifted and placed onto the middle income earners and the poor and in turn, the economy is not doing as well as it did then.
Lack of Integrity and zero monitoring by government
The burden of taxation on the poor is only increasing as time goes by and this is largely because of the rich taking advantage. The rich have been known to lend insanely large amounts of money to governments which gives them the power to evade taxes and worse, put the debt payment and tax burden on the poor and the generations to come. Lack of integrity and monitoring is the main contributor in this case and this is why the gap between the rich and the poor keeps getting wider. The unborn being in debt is reason enough for any government to watch the power that the rich are allowed to have over government laws and practices.
Therefore, if things are going to change even a little bit, it is going to require a drastic change in the way governments make and enforce taxation laws because so far, they only seem to be favoring the rich. There is need for major concern over the economy and to make it progressive, one may argue that the government needs to tax the rich and the huge corporations more than the poor and the middle income earners.
REFERENCE: Ahmad Munir, Should Rich People Have To Pay More Taxes? Academia.edu,https://www.academia.edu/41159746/Should_Rich_People_Have_To_Pay_More_Taxes?sm=b
By Wanjiru Muhoro | Writer