The extent to which the government should intervene in the economy is an issue that has been debated for thousands of years across the entire globe. Is the free market more efficient than the government? To what extent are taxes necessary in a functioning society? Is economic liberty more important than economic equality? These are the kinds of questions that have been debated since the inception of this country. Today, Republicans and Democrats are strongly divided on this issue. Democrats argue that the Republicans do not want their wealthy to pay their fair share, and that they should pay high taxes for the benefit of disadvantaged people because they can afford to. Republicans believe that Democrats want a huge and powerful government
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The primary such flaw is that the wealthy are able to use loopholes to avoid. To find proof of this, all one needs to do is look at the contrast between what they are supposed to pay in theory and what they actually pay. Patricia Cohen, a writer for the New York Times writes that despite the top tax bracket being 39.6%, the top 0.1% earners pay only 25% in taxes on average (Cohen). There are a variety of loopholes that people who can afford the best attorneys and financial consultants are able to utilize; however, the most common method is the exploitation of the capital gains laws. The tax rate for capital gains and dividends (which is money made from investments and property) is a comparatively low 23.8%. There are a variety of tricks that the super wealthy use to make as much of their income as possible qualify for this lower rate, allowing them to collectively save hundreds of billions of dollars every year. It’s not just big-government liberals saying this. Steve Forbes, a proponent of the flat tax, agrees that the complexity of the system benefits the wealthy who can afford attorneys (Forbes 67). Clearly, the system is not functioning as intended and needs major …show more content…
In fact, the majority of Americans agree that the tax system is in need of reform. The Pew Research Center, a well-known nonpartisan research organization, conducted a poll of the American people to gauge the public opinion on the current tax system. The results were extremely clear and conclusive. According to the poll, 82% of people said that they “felt bothered that corporations don’t pay their fair share of taxes” (Federal Tax System). Similarly, 79% of people “felt bothered that the wealthy don’t pay their fair share of taxes” (Federal Tax System). Only a measly 4% of Americans said they would describe the tax system as “very fair” (Federal Tax System). Finally, 59% of people said they think “there is a lot wrong with the federal tax system and congress should completely change it” (Federal Tax System). The results couldn’t be more clear. Some people think that this isn’t even a very high percentage, but when you consider the current political climate, it’s actually quite the consensus. Issues such as abortion, gun control, and foreign policy are split almost completely down the middle. A three-fifths consensus is very rare. Also, these are just the people that want radical tax reform, and it’s certain that many of the other 41% would be open to moderate tax reform, which is what I am proposing. Clearly the American people are not satisfied with the current tax system. Considering America is a democracy, it would be
The primary such flaw is that the wealthy are able to use loopholes to avoid. To find proof of this, all one needs to do is look at the contrast between what they are supposed to pay in theory and what they actually pay. Patricia Cohen, a writer for the New York Times writes that despite the top tax bracket being 39.6%, the top 0.1% earners pay only 25% in taxes on average (Cohen). There are a variety of loopholes that people who can afford the best attorneys and financial consultants are able to utilize; however, the most common method is the exploitation of the capital gains laws. The tax rate for capital gains and dividends (which is money made from investments and property) is a comparatively low 23.8%. There are a variety of tricks that the super wealthy use to make as much of their income as possible qualify for this lower rate, allowing them to collectively save hundreds of billions of dollars every year. It’s not just big-government liberals saying this. Steve Forbes, a proponent of the flat tax, agrees that the complexity of the system benefits the wealthy who can afford attorneys (Forbes 67). Clearly, the system is not functioning as intended and needs major …show more content…
In fact, the majority of Americans agree that the tax system is in need of reform. The Pew Research Center, a well-known nonpartisan research organization, conducted a poll of the American people to gauge the public opinion on the current tax system. The results were extremely clear and conclusive. According to the poll, 82% of people said that they “felt bothered that corporations don’t pay their fair share of taxes” (Federal Tax System). Similarly, 79% of people “felt bothered that the wealthy don’t pay their fair share of taxes” (Federal Tax System). Only a measly 4% of Americans said they would describe the tax system as “very fair” (Federal Tax System). Finally, 59% of people said they think “there is a lot wrong with the federal tax system and congress should completely change it” (Federal Tax System). The results couldn’t be more clear. Some people think that this isn’t even a very high percentage, but when you consider the current political climate, it’s actually quite the consensus. Issues such as abortion, gun control, and foreign policy are split almost completely down the middle. A three-fifths consensus is very rare. Also, these are just the people that want radical tax reform, and it’s certain that many of the other 41% would be open to moderate tax reform, which is what I am proposing. Clearly the American people are not satisfied with the current tax system. Considering America is a democracy, it would be