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Direct Tax Vs Progressive Tax Essay

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The federal income tax is a direct tax because they are taxes paid directly to the United State’s government. An indirect tax is taken when people pay for a good or service, taken indirectly to the government. This is a direct tax, because there is no middle man, only tax money going directly to the government.

A flat tax has one tax rate has one tax rate for all income brackets, and is the same amount for all income levels. A regressive income tax, on the other hand, is a tax that makes the amount paid the same no matter the income of a person, so as the income goes down, the tax rate goes up. A progressive tax plan charges higher taxes to people the more money they earn, so that the top earners pay more proportionally in taxes than the …show more content…

This is because in this simulation, I earn a lower amount of money, and so in the regressive tax system I pay more of my own money proportionally to make sure that everyone pays the same amount for taxes regardless of income. I pay the least taxes in the progressive tax system, because this tax system is setup to make everyone pay proportionally closer amounts of their incomes on taxes, and because I am in a lower income tax bracket, I pay the least.

The proportional tax system would benefit me the most because in this career, I earn only $30,000 a year, which puts me in the lower two income brackets. Under the proportional income tax system, I pay lower rates on my taxes than the wealthier do to make it so that I am proportionally even with the rich in the amount of my income paid.

I think this plan is most fair to everyone, because it makes it so that the poor don’t have to pay more proportionally of their income to cover government taxes. In this system, people pay the same relative amount that will affect their finances the same, having to take out proportionally the same amount of income for taxes, and it evens the playing field for

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