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Browse: Home / MONEY / Taxes

Is regressive taxation the answer to an ailing economy?

Mentor M: Is regressive taxation the answer to an ailing economy?
Do you think a regressive taxation system would be better for the country?

A higher marginal tax rate for lower income earners would encourage them to earn more money so they can pay less tax and the savings of higher income earners can be used to fuel economic investment to reduce unemployment!

Isn’t the progressive taxation system just penalising the most productive workers in society?

Answers and Views:

Answer by Chancellor Emilio Largo
Yes. The poor need to remember who is in charge here.

Answer by Tom S
We all know that raising taxes will create more jobs. Businesses use this higher expense to expand their employee base.

Answer by Wally
Low taxes and the government keeping their greedy noses out of the problem will fix everything

Answer by Reality has a Liberal Bias
Just when I thought people couldn’t get more hateful toward the poor…

Answer by Pete
True, a progressive tax system penalizes the most productive workers, but if one of those workers fell on hard times, then a regressive tax system would penalize them. The best alternative is to establish a flat rate tax system, so that every American pays an equivalent percentage of every dollar they earn. No penalizing of any person or group.

Answer by Char
Yes, what a great idea! The lower income earners actually LIKE making less money, and they need an incentive to make more. With an increase in the tax rate, they would invest more. They might even decide to go to go back to school and get a degree or get an apprenticeship because obviously they can afford it and because of this, they’re going to be wealthy and pay less taxes then. You’re so brilliant!

Answer by Igor T. Unspeakable
No. It would simply take more from those who can afford it least. Big business would still outsource the jobs anyway.

Related Questions:

  • 1.  What are the tax benefits for my situation?
  • 2.  The taxes minused from your savings acount, is it tax dedcutable?
  • 3.  How do we file taxes for my brother who died in 2007?
  • 4.  What tax do I pay when living in a state without a sales tax?

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