Should People Making Over $250,000 Taxes Be Changed?
Should People Making Over $250,000 Taxes Be Changed?
It is postulated that the easiest way to come out of economic trickle is through an upward redistribution of revenue via imposing huge taxes in the rich populace of the nation. It should be understood that the growth of every economy of a nation is attributed to the financial contribution of its citizens who are the sole taxpayers. However, people are divided into different classes in the society based on their income with those earning more money expected to contribute more than those earning less money. It is not easy to pull up an economy from a middle class to a high class bringing up the questions whether everyone should have a good life, have access to better healthcare, access to good infrastructure and well-paying jobs. Nonetheless, the bone of contention is the expense at which all these will be obtained (Brownlee, 2016). Getting it directly from its citizens is the fastest way in which a country can increase its revenue. The raising of taxes is just but one of the methods of obtaining the revenue from the citizens of a nation, however, the raise is in the taxation should not be too high. It should be regulated and be within a reasonable means for the citizens. In a population of two million people, for instance, earning more than two hundred and fifty dollars annually, a slight taxation of about two percent will result in a collection of a large amount of revenue
Fiscal changes are debatable issues in actuality since the taxes increase is significant to the ever-growing needs of the physical budget on one hand while on the other hand, the traditional policy exists on the non-interference of the government of the United States of America. Regarding this, the possible increase of taxes especially for the rich in the society is a sensitive issue owing to the fact that the majority of the populace subscribes to such measures even though the economic implications of such decisions may be hidden to many. It is a fact that political opposition is expected against such decisions from the part of the Republicans who stood on the economic liberal grounds traditionally. The parliamentary legislators could be the perfect audience for this to ensure a law is passed for the implementation of the rule. This paper will primarily discuss the importance of raising the taxes of the fraction of the populace earning more than two hundred and fifty thousand dollars annually. The main reason why the taxes should be changed is that of the current unfair taxation since those earning more than $250000 are in a position of paying higher taxes which can be used in supporting the poor in the society. It can also be used as a medium by the government to act as the mediator between the rich and the poor in the society.
History and Status of the taxes increase
The tax increase for those earning more than $250000 in the society is considered as a controversial issue particularly with respect to the economy of the United State of Am Erica. The economy if the United States of America for a long time has had a strong liberal policies inclination with less interference into the national economy of the government. Republican government, with regards to this, was oriented on the liberation of fiscal policies traditionally with minimal fiscal pressure, development of the free open market and the reduction in the expenses by the government (Brownlee, 2016). The Democrats, in contrast, tended to the wider interference by the government and policies to bridge the wide gap between the poor and the rich in the society. It is by nature that in any society, there must be a disparity between the rich and the poor. However, the Democrats aimed at reducing the gap to ensure economic fairness to the populace of the nation. The administration of Obama was considered as a socialist’s administration mainly because of the policies of the government insinuating that the administration of President Obama was favorable for the increase of taxes for those earning $250000 and above and the rich in the society (Gómez-Sabaíni, Martorano ; Morán, 2016).
The Economic Problem
The introduction of the increase in taxes for the rich in the society is actually stimulated by the stumbling economy of the United States of America. Besides the low economic growth rate. The pauperization of a large section of the American populace has been triggered by the deterioration of the economic situation in addition to the shift of a fraction of the middle-class population to the lower class with the upper class earning $250000 dollars and above. The pauperization of the population and the economic deterioration situation increases the problem of the further decline of the growth of the United States of America’s economy mainly because of the focus of Americans on savings other than spending and low consumption rates (Mehrotra, 2017). The government in such a situation mainly focuses on the business activities enhancement achievable through the improvement of the buying power of the majority of the populace.
The increase in taxation of the rich in this regard opens the way for a reduction of the fiscal pressure on the middle class minimizing further pauperization of the middle class in the society. The rich will instead not suffer from the substantial financial losses courtesy of their high-income levels. The taxation increase for the rich will aid in resolving the economic decline problem of the USA besides boosting recovery of the economy of America.
The main audience in this paper is the parliamentary legislators who are seen to portray different characters as far as the making and implementation of laws is concerned. First and foremost, the legislators are responsible for the making new and amending the legislative rules of the land used in the governing of the state. In proposing or coming up with new rules and fighting for the implementation of the rules, every member of the legislature has a role. The legislative members are a representation of people’s voices and have to be the voice of the people in terms of decision making for all matters concerning their welfare. The decision making through the legislative representatives must be based on the majority because of the represented population and for a decision to be arrived at by the legislative, it has to be unanimous (Gómez-Sabaíni, Martorano ; Morán, 2016). According to the constitutional postulation, at least two-thirds of the legislative members must show their support or inclination towards a decision.
Regarding the case, there are high possibilities that the legislative representatives will oppose the topic. It is human nature to seek more money and wealth without considering the fate of other people and as such, they will not be able to be willing to have their pay reduced through taxation. The legislative representatives at the end of the day will tend to have a better pay hence cannot be in support of such a motion and it would be a rare situation to be found supporting a motion that will reduce their money.
The primary political problem that comes up along with the increase in taxation of those earning more than two hundred and fifty thousand dollars is the over-regulation of the economy of the United States of America and the government economic problem. As a matter of fact, while the government focused on other issues, the historical establishment of the United States of America was accompanied mainly by the free economic development and not the economic issues. With regards to this, the regulations by the government always evoked a strong opposition in the society of the United States as well as the politics of the United States of America since such regulations were regarded as the excessive interference of the state with the private matters of individuals and the economy of the United States of America. Historically, the United States of America was a country where the government was not allowed to set tight control over the economy of the nation through the employment of fiscal policies. As such, increasing taxation on the poor in the society would lead to evoking of severe criticism, particularly from the Republican Party’s side. Nonetheless, it should be comprehended that the increase in the taxes to the rich in the society will be a significant political decision to insinuate how much the government minds the welfare of the poor and the average in the society particularly after the bailouts of 2008-2009 when the policy of the government was understood as the care of big corporations at the average taxpayers’ cost.
The Social Problem
The problem of the growing disparity within the society of the United States of America is a burning social problem that is closely intertwined with the increase in the taxes of the rich in the American society. In brief, the considerable widening of gaps between the rich and the poor in the society was triggered by the economic recession of 2008 (Brownlee, 2016). To be specific, the increase in social disparity between the rich and the poor was due to the substantial gap in the income level. The ever-increasing economic and social disparity is attributed to the increasing tension and misunderstanding between the poor and the rich in the American society. This a social problem that needs to be addressed by the government and if it keeps ignoring the problem, there is a possibility of a large-scale social conflict (Gómez-Sabaíni, Martorano ; Morán, 2016). Regardless of the economic class and status of the two groups in the society, peace and tranquility are important in the society. Addressing the disparity gap by the government will be one of the ways of bringing together the two economic classes for the sale of peace and coexistence.
It is with regards to the social disparity gap that the movements such as the Occupy Wall Street movement may be perceived as mere precursors of the large-scale social protests against injustices that are persisting in the United States of America that may lead to eruption of fatal clashes between the law enforcement agencies and the civilians and maybe the military. With the maintenance of the existing social order, the government will, in the long run, face considerable problems courtesy of the growing social injustices and social protests in the American society.
Regarding the increase in the taxation of the rich in the society, many ideologies have come forth. Different schools of thoughts have their own perception of the issue with each school of thought being more mindful of its affiliate inclination. Taxing the rich more than the poor in the American society is considered as the exploitation of the rich by the government in the name of economic equality.
The ideology in support for the claim is that every American citizen has the potential of being rich since every person has the same number of hours in a day and a year. It is because of the hard work that the reach has been able to attain the social and economic class they are living in. in most incidences, the rich are postulated not to have exploited the poor to be where they are hence should not be obligated by the law to pay higher taxes. Some argue that not all the revenues collected from the rich citizens are given to the poor, some of the raised revenue will end up in the bank accounts of the corrupt system of the American government. The rich attributes that helping the poor in the society is a personal obligation that should not be made mandatory by law.
The civil society together with social movements considers the rise in tax to the people making over $250000 per annum as a strategy that will help in the reduction of the economic disparity between the rich and the poor in the American society. It is argued that the ever-growing disparity in the economy put the country at a risk of possible conflict between the rich and the poor. Sharing is considered ethical in American society. The implementation of the law will act as a measure to facilitate sharing.
Benefits of Taxing the Rich
One of the main advantages of increasing tax on the rich is that it is only the rich in the society who are able of affording tax increase especially during tough economic moments when the government needs to establish other ways of acquiring more revenue. Besides limiting wealth discrepancies from getting too large, taxing the rich can be employed as a measure of wealth redistribution where the money raised from the taxes may be used in helping the needy sections of the populace.
Disadvantages of Taxing the Rich
It is the public domain that not all the money collected by the government can be accounted for. Much of the money is wasted. Increasing the tax will insinuate that the government will have more money at its disposal to waste and with no proper incentive for the money to be spent efficiently (Flora, 2017). Increasing taxes can also be considered as a disincentive for businesses and individuals to make more money. It may drive away investors from the American economy to other regions with lower taxes especially if they feel that their effort in the economy of the nation is not being sufficiently rewarded.
Higher taxation in the past lead the economy towards stagnation hence there is no need for the adoption of the high taxation rates and higher taxes that slowed down the economy in the past. Additionally, on numerous occasions, it has been shown that cutting taxes for businesses has, in reality, increased the overall revenue. Imposing tax increment on the other hand results to the results to an alteration of the manner in which individuals spend and invest so as to establish better ways of reducing their expenditure which automatically results in the reduction of the amount of revenue collected by the government.
The increase in the taxation of the rich in the society is one of the essential steps in addressing the current social, economic and political problems in the United States of America. Besides, it advocates for economic equality between the rich and the poor hence helping in ridging the existing economic disparity gap. In my perception, those earning $250 000 and above should be changed. This is a decision that is likely to raise a strong opposition in the United States and especially among the legislative. Taxing the wealthy will be to the benefit to the citizens of America who are poor. It should be noted that if the rich in the American society give more, the poor and the middle class would not have to pay more taxes of what they don’t have.
Brownlee, W. E. (2016). Federal Taxation in America. Cambridge University Press.
Flora, P. (2017). Development of welfare states in Europe and America. Routledge.
Gómez-Sabaíni, J. C., Martorano, B., & Morán, D. (2016). Taxation and Inequality: Lessons from Latin America. World Social Science Report on Inequality. Paris: UNESCO.
Mehrotra, A. (2017). Fiscal Forearms: Taxation as the Lifeblood of the Modern Liberal State.