Why the current tax systems is beleive to be unfair

Running head : WHY THE CURRENT TAX SYSTEMS IS BELIEVED TO BE UNFAIR

Introduction

A fair tax system is one that is progressive in nature that is the more income one earns the more they are taxed . The principle behind most tax regimes is to redistribute income from the rich to the poor . High taxes are levied on luxury items since it is assumed that the people who can afford those items are wealthy enough to afford the taxes Government tax agencies use the taxes collected to build social infrastructure and pay for

the costs of running the government . Thus a nation 's tax policies are unfair when the rich are taxed less and the taxes collected are used to benefit the minority as opposed to the majority

The American tax system has been structured such that the lower and middle classes pay a higher proportion of their income as taxes than do the upper classes . Those households earning less than 20 ,000 end up paying up to 16 of their incomes as taxes while the rich earning over 150 ,000 end up paying only 4 .6 of the income as tax receipts (Caron 2003 . This situation has developed under the republican administration which has given several tax breaks to the rich . Economic analysts from the republican side argue that it unfair to tax the rich more just because they earn higher incomes . Advancing the argument further , they posit that higher taxes for the rich are akin to punishing someone for...