What Is a Progressive Tax System?
A progressive tax is an income tax that distributes higher tax burdens on individuals who have high household incomes. The progressive tax shifts a nation's tax burden from the poor to the rich, enabling those with the inability to pay taxes an exemption from this burden. Most progressive taxes are based on personal or household income, both at the state and national levels of the U.S. workforce.
The biggest advantage seen in a progressive tax is the wealthier individuals pay more of the tax burden. This protects the poorer classes from a heavy tax burden and also allows individuals who suffer a decrease in household income to lighten their tax burden. Proponents of a progressive tax also believe wealthier individuals should pay more for services provided by the government because the wealthy have the ability to pay for others from their wealth.
Opponents of the progressive tax system believe that progressive taxes are an invasion of individual rights because they are punished for their success. As they increase income and wealth, these individuals are constantly required to pay more in taxes. Because the taxes are then redistributed to poorer individuals through government aid programs, some see this as socialism. Some also believe progressive tax systems encourage off-shore banking, allowing high-income earners to hide their wealth from government taxes.
Just How Progressive Is the Tax System?
Congressional Budget Office versus Citizens for Tax Justice ! You Decide !
Just food for thought ! Are benefits such as social security and medicare progressive ? Do we really get based on how much we pay through out the years ? Well Rich and Poor can fight along while the middle class is taking a hit right to the face. There are two parties here in United States of America, one is taken by the Poor and one by the Rich. No one cares about middle class !
Citizens for Tax Justice
Congressional Budget Office
Citizens for Tax Justice, founded in 1979, is a 501 (c)(4) public interest research and advocacy organization focusing on federal, state and local tax policies and their impact upon our nation. CTJ's mission is to give ordinary people a greater voice in the development of tax laws. Against the armies of special interest lobbyists for corporations and the wealthy, CTJ fights for:
- Fair taxes for middle and low-income families
- Requiring the wealthy to pay their fair share
- Closing corporate tax loopholes
- Adequately funding important government services
- Reducing the federal debt
- Taxation that minimizes distortion of economic markets