Do rich people need to pay more taxes?
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Do rich people need to pay more taxes?
The idea of increasing taxes to the rich is gaining ground in the U.S and across the entire globe. As economic crisis has deepened in recent days, so has the argument. Those on the left of politics maintain that the wealthy should be taxed more to make a considerable contribution. On the contrary, those on the political right hold that an increased tax for the rich is counterproductive and may deteriorate the existing problems. The debate has been impelled through court cases of some rich people and celebrities who evade taxation.
Thesis: Several high-profile politicians recommend that the rich should pay more in taxes because it adds more value to the economy.
The economic times are threatening and paying more taxes is likely to bring in additional money. Hence, adding more taxes on the rich is logical because they can afford tax increases. This argument can be supported through recent evidence. Earlier this year (2019), an elected Representative Alexandria Cortez suggested that taxes for the top earners should be doubled. Based on her plan, the tax rate would stand at 70% on salary of over $10 million (Engler, 2019). Increased revenue acquired from such measures would promote regular ideas in states. For instance, Medicare for all people would be developed and free school tuition. This trend would lessen the rising economic difficulties among citizens and improve their lifestyles.
An increased tax system targeting the wealthy can prevent inconsistencies from spreading across the states. The rise of class and differences between the poor and the rich has continued to grow over the decades. Despite the efforts to create a stable and self-reliant society, the gap between the poor and the rich continues to widen. Researchers have provided varied views to prove the evidence. The rich should pay more taxes to promote wealth redistribution. The money raised should be used to support the poorest segments of the population (Sherman, 2019). An increased gap between the two classes results in a high risk of social strife and instability.
The rich should start paying more taxes to support health, defense, social security, and education. A wealth tax can be used as a source for acquiring money to address inequality in society through the proper allocation of resources (Engler, 2019). It is evident that wealth is an accrued prosperity that is passed from one generation to another. The rich acquire most of their cash from investments and dividend benefits and empower members of their families to achieve success and realize their goals. Paying more taxes would be a strategy to engage the rich in society concerns, social amenities, and education, among others and in that way, promote equality and growth.
Conclusively, numerous powerful politicians support the idea of rich people paying more taxes. Even U.S President Donald Trump has shown interests to close tax dodges for the well-off. Unquestionably, increasing the taxation rate on prosperous people is a policy notion. Currently, the U.S economy is slowly getting less entrepreneurial. This fact is an indication that the wealthy are not developing new businesses that should help the larger society. As a result, the rich need to pay more taxes to enable the government to create job opportunities for all people in community.
Reference
Engler, M. (2019). Should the wealthy pay more taxes? Retrieved from https://www.morningsidecenter.org/teachable-moment/lessons/should-wealthy-pay-more-taxes
Sherman, N. (2019). Are U.S billionaires really going to pay more taxes? BBC News. Retrieved from https://www.bbc.com/news/business-50006724
