Post by geriatrix on Feb 22, 2016 14:00:17 GMT
Pro:
The majority of authorities in democratic countries supports a progressive tax and advance many arguments for it. For example, they say that progressive tax gives a government more revenue, while also enhancing opportunity for its lower and middle class citizens. Without progressive taxes, there would be a risk of all wealth being concentrated in the hands of a few people. As income increases, households have more and more funds that is not spent on basic necessities and thus can afford to pay more tax in a way that is impossible for the poor.
Con:
Critics argue that the system violates the basic principle that all people are equal under the law, since it treats the poor and the wealthy differently. Another objection to progressive taxes is that they create unfair representation; if for example 10% of the population is funding 60% of the tax base of a country, they still receive only 10% representation in the government, since paying more tax does not earn more voting power. Progressive taxes have also been demonstrated to lower overall savings rates, a situation that most countries wish to avoid.
The majority of authorities in democratic countries supports a progressive tax and advance many arguments for it. For example, they say that progressive tax gives a government more revenue, while also enhancing opportunity for its lower and middle class citizens. Without progressive taxes, there would be a risk of all wealth being concentrated in the hands of a few people. As income increases, households have more and more funds that is not spent on basic necessities and thus can afford to pay more tax in a way that is impossible for the poor.
Con:
Critics argue that the system violates the basic principle that all people are equal under the law, since it treats the poor and the wealthy differently. Another objection to progressive taxes is that they create unfair representation; if for example 10% of the population is funding 60% of the tax base of a country, they still receive only 10% representation in the government, since paying more tax does not earn more voting power. Progressive taxes have also been demonstrated to lower overall savings rates, a situation that most countries wish to avoid.
