The Tax Debate
The tax debate is an important feature in most countries, and it usually resurfaces with intensity during election period. The tax debate is one of the hottest topics in American politics, centering not only on how much people should pay, but also equally on who should pay taxes to the exchequer. Despite what the arguments might be, there is no likely consensus and each political group would pull in their direction just to appease a certain section of society for political gain.
On one end are the liberals who hold that tax policy regime should focus on reducing income inequalities. The liberals support higher taxation for the rich in order to provide more services to the poor. Therefore, a progressive tax schedule is favorable, where taxes are pegged on ones’ income. However, on the other end of the tax debate are conservatives who scoff at attempts to distribute income across social groups by the government. Indeed, many people are supportive of flat tax rates, which deduct similar amounts from the poor and the rich.
The two divergent views on taxation have their own merits and demerits. From example, it would be justifiable if those earning more paid equally higher amounts of taxes in order to ensure equity in society. After all, a dollar taken from the rich in favor of the poor would most likely increase national welfare since he poor would value that dollar than the rich. Further, the rich usually put money in banks and walk around with a lot of money that does not benefit the economy much. Therefore, paying more in taxes would inject the much-needed capital for investments.
On the other hand, the rich might argue that paying more would be punitive because they earn their income through hard work. Secondly, even when a flat tax regime is adopted, the rich pay more than the poor since the rich and the poor do not pay a certain predetermined amount. The argument is that anyone can work hard and achieve the same status in society and therefore taxing the rich more would be spiteful.
From this analysis, it is evident that achieving a consensus on the debate would be problematic as each party in the tax debacle has some positive arguments. However, social justice and equity must prevail in the end. Indeed, there is always a way through which the rich can add more value to society, whether they pay more taxes or not.