Taxation Management

Deadline is approaching?

Wait no more. Let us write you an essay from scratch

Receive Paper In 3 Hours

True, in this pluralistic world we can’t fully redefine the economy, but we can establish economic policies. Nevertheless, to ensure justice prevails, there needs to be a striking balance for all citizens. How else are the wealthy going to be taxed in this respect? More than a quarter of all government taxes are directly paid by the richest citizens, but they are the smallest group. This means that if they proceed with President_x0092_s Obama motion of raising taxes to those earning more than $250,000, people will be discouraged to make more for a living. More of their money would be going to the government while they become unable to maintain their businesses. In turn, they will find it difficult even to pay their employees.
Arguments Against
Ideally, the rich cannot fall with an increase in tax. Having a share of their income to help the economy is not discouraging to an open-minded citizen. Furthermore, money raised from taxation will, in turn, contribute to stabilizing a society for them to earn more. The economy needs to recover but cannot recover if a particular group lag behind.
In fiscal management, once taxes are progressive with the rate of income, the increasing national income will be automatically slowed down (Stiglitz, 2014). As it is, income inequality can indeed hurt the economy. Taxation brings distortions but has to be applied with equity in tax burdens.
New Knowledge
Realistically, tax equity does not mean a complete balance between the rich and the poor but rather to produce the smallest possible distortions in an economy (Thoma, 2015). In other words, increase taxations on the wealthy group with slow down economic growth, but the reward is tremendously encouraging. In fact, such type of a taxation system will enhance economic growth by reducing inequality. Indeed, a balance between the privileges of the poor and rich will be the very foundation to reducing the capitalist system where money is power.

References
Stiglitz, J. E. (2014). Reforming taxation to promote growth and equity. Roosevelt Institute, White Paper. Retrieved from http://www.aimcmp.com/Stiglitz_Reforming_Taxation_White_Paper_Roosevelt_Institute.pdf
Thoma, M. (2015). Taxing the Wealthy Promotes Economic Growth. The Fiscal Times. Retrieved from http://www.thefiscaltimes.com/Columns/2015/01/27/Taxing-Wealthy-Promotes-Economic-Growth

This sample could have been used by your fellow student... Get your own unique essay on any topic and submit it by the deadline.

Let a professional writer get your back and save some time!

Hire Writer

Find Out the Cost of Your Paper

Get Price
Hi!

Can’t find the essay you need? Our professional writers are ready to complete a unique paper for you. Just fill in the form and submit your order.

Proceed to the form No, thank you
Can’t find the essay you need?