Chipmonker Posted June 9, 2007 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!
buzz Posted June 9, 2007 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.
kikaown Posted June 11, 2007 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?
Chipmonker Posted June 15, 2007 Author 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.
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