progressive tax fairness
Progressive Income Tax Fairness
The issue of federal income tax policy has been one of hot debate and controversy for many years. Discussions and arguments on the issue have been presented on the floors of Congress, in the United States Supreme Court, used by politicians as political platforms, broadcasted in televised debates, and discussed around the dinner table of American families of various socioeconomic backgrounds for years. The Federal Government of the United States of America, like any governing body whether it be at a national, state, or local level, works (for lack of a better word) to generate revenue to make possible the funding of many public programs and services and repayment of national debt. Of course, the easiest way for any government to bring in revenue is through taxation of its citizens. If you’ve ever received a paycheck, you’ve probably realized that your hourly pay multiplied by the number of hours you’ve worked during any particular pay period isn’t exactly equivalent to the amount of money you actually get to keep. Some of the money that you earn through your own personal labor is taken from your paycheck before you even get the chance to see it. Most people pay four types of deductions, or taxes: FICA, Federal Income Tax, State Income Tax, and Local Tax (CashCourse.org). Only two of these taxes are related to the Federal Government- FICA (Federal Insurance Contributions Act) and Federal Income taxes- and these two types of federal taxes, as well as the way in which the government collects them and possible alternatives to current tax policy, will be the main focus of my paper. To get an idea of what the government spends its (your) money on, consider that in the 2012 fiscal year, the federal government spent approximately $3.5 trillion, about 23% of our nation’s Gross Domestic Product, or GDP. Of that $3.5 trillion dollars, $2.5 trillion was financed by federal revenue, the rest by barrowing; a deficit, along with its impending
The issue of federal income tax policy has been one of hot debate and controversy for many years. Discussions and arguments on the issue have been presented on the floors of Congress, in the United States Supreme Court, used by politicians as political platforms, broadcasted in televised debates, and discussed around the dinner table of American families of various socioeconomic backgrounds for years. The Federal Government of the United States of America, like any governing body whether it be at a national, state, or local level, works (for lack of a better word) to generate revenue to make possible the funding of many public programs and services and repayment of national debt. Of course, the easiest way for any government to bring in revenue is through taxation of its citizens. If you’ve ever received a paycheck, you’ve probably realized that your hourly pay multiplied by the number of hours you’ve worked during any particular pay period isn’t exactly equivalent to the amount of money you actually get to keep. Some of the money that you earn through your own personal labor is taken from your paycheck before you even get the chance to see it. Most people pay four types of deductions, or taxes: FICA, Federal Income Tax, State Income Tax, and Local Tax (CashCourse.org). Only two of these taxes are related to the Federal Government- FICA (Federal Insurance Contributions Act) and Federal Income taxes- and these two types of federal taxes, as well as the way in which the government collects them and possible alternatives to current tax policy, will be the main focus of my paper. To get an idea of what the government spends its (your) money on, consider that in the 2012 fiscal year, the federal government spent approximately $3.5 trillion, about 23% of our nation’s Gross Domestic Product, or GDP. Of that $3.5 trillion dollars, $2.5 trillion was financed by federal revenue, the rest by barrowing; a deficit, along with its impending