Chipmonker Posted June 9, 2007 Share Posted June 9, 2007 This is a straightforward question of fiscal policy “ should people who earn more pay direct tax (tax on income) at a higher rate or not? Definition: Progressive Tax A tax that takes a larger percentage from the income of high-income people than it does from low-income people. For example, if a person who earns a yearly income of $20,000 would be taxed at a rate of 10% ($2,000 taken) while a person who earns a yearly income of $120,000 would be taxed at a rate of 30% ($36,000 taken). This is in contrast to a flat tax of 15% which would take 15% of the person who earned $20,000 and the person who earned $120,000. This can also apply to corporate taxes as well as on income from stocks/bonds/capital gains. (But we can get into that later!) So what does TDN think? Resources http://en.wikipedia.org/wiki/Progressive_tax http://www.investopedia.com/Default.aspx?viewed=1 Use Google “ Darn it! Link to comment Share on other sites More sharing options...
buzz Posted June 9, 2007 Share Posted June 9, 2007 I believe that there should be one rate for everyone. The way it is now, the wealthiest 1% of Americans pay 99% of all income tax. Link to comment Share on other sites More sharing options...
kikaown Posted June 11, 2007 Share Posted June 11, 2007 Flat rate is better. Rich people already pay more with a flat rate, because it is based on percentages. Why charge them even more? Link to comment Share on other sites More sharing options...
Chipmonker Posted June 15, 2007 Author Share Posted June 15, 2007 Well I can't say I disagree with either of you. I agree because the rich are *usually the ones that own businesses and invest their money, like Bill Gates. If he is paying both higher income taxes as well as corporate taxes, it puts a damper upon their spending and investing. Both of which puts their money back into the economy. Link to comment Share on other sites More sharing options...
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