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How Did The Taxation System Affect The American Economy

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How the Taxation System Effects the American Economy
Since the 1940s the Federal Taxation system has been a constant concern for our economy. The original purpose of the taxation system was to help the government retain revenue. The American tax system consist of 7 different tax rates; people, businesses, banks are some things that are taxed in the U.S. There are supporters and/or opponents of the Progressive tax system. Citizens that oppose the Progressive tax system believe that every American should be taxed at the same rate for every dollar earned; while another set of supporters believe the wealthier citizens should pay a higher tax rate, others say the government should not expand the tax base which will lead to a flat tax for all citizens. …show more content…

tax code argue that the wealthy must pay their fair share in taxes. The design of the Progressive taxes system was to make sure everyone pay taxes depending on their earnings. Money received from taxes coming from the rich helps spur money based growth and government. Many argue that the wealthy do not pay their fair share when it comes to taxes. Some believe the U.S. is shorting its citizens of the benefits that could be gained from paying taxes. The fact the Progressive tax code is not Progressive enough, it is a matter in question.
Opponents of the Progressive nature of the U.S. tax code argue that the wealthier citizens bear a disproportionate amount of the overall tax burden. There is not enough rich people to tax at a higher rate effectively. Raising taxes will not solve economic issues. A lower tax rate on the wealthy on the other hand would improve the economy sensationally. "Why do liberals work so hard to create the perception that 'taxing the rich' will solve our problems?" wrote Senator Tom Coburn (R, Oklahoma) in

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