The idea belongs to the father of progressiveness economy of Adam Smith and his notion of '' capacity '' contributor , who claimed an equal division of the sacrifices you have to make every contributor in proportion to capacity and its income . So , those who have more resources and opportunities should contribute more to the state and society . The sacrifice that you asked those who earn more , is estimated to measure the progressiveness or the amount paid '' more '' than others , but above all to '' utility that it has for many social model and functions of state / '' government . The main arguments of the advocates of this form of taxation are :
- By taxing the rich more , he creates more opportunities to poor consumption ;
- By taxing high incomes and capital accumulation fought its use for still greater profits ;
- Collecting more revenue in the budget , the state is more likely to provide equally and in a wide range of important public services like education, health , infrastructure , transport , social support, etc. .
- Having more money available to the state could easily play the role of arbitrator and ekuilibruesit on issues of social cohesion , economic policies , etc. support .
The objections against this tax argue it as :
- Progressive tax is a way of creeping expropriation and confiscation therefore a violation of the right of the individual / company to enjoy the complete freedom the revenues in a free market .
- This kind of tax evasion and stimulates migration '' fiscal '' and attempted to evade taxes.
- A tax system that has a high cost to the state functioning as well as for businesses , which is very complicated in design , documentation and its implementation .
- It is demotivating for increased production and income , while the quality of any malfunction fiscal administration perceived as '' abuse , '' punishment or fiscal inquisition ; progressive tax is contrary to the expected effects of the