Why is the taxation done in brackets in this country?

xredfalconx512: Why is the taxation done in brackets in this country?
I don’t understand the income taxation system, which by its implications, punish the ambitious and hardworking who are successful and wealthy to promote the welfare of the less successful, whichever the cause may be, who get taxed less.
Consider the fact that the amount of the money taxed increases with the increasing income, why heighten the percentage for the higher brackets to limit the freedom of financial pursuits, one of the founding bases of liberty?
What is the fundamental idea and benefits behind this bracket taxation system?

Answers and Views:

Answer by intel_knight
idea is that person with $ 1000/month income will suffer more from 20% tax than a guy with $ 1million/month.

It kinda goes back to decreasing marginal utility.

Lack of support for flat tax from the rich is indeed an indication that they are OK with brackets.

Answer by vegan_chick
I’m taking a tax class….we have went over this a million times inclas….and I still can’t answer this question! lol…I guess because the class is at 8 in the morning! Taxes are tricky….I’ve just found it’s better to find Web sites that break things down and explain them a little better.

Answer by blondecougaress
Haa haaa. You have asked the $ 65 dollar question. har har.

The current system is fundamentally socialist. As you stated. It rewards low/no wage earners and punishes high wage earners. I believe this was slowly created because it is very easy to play on the emotions of tax payers by playing the class envy card. People are led to believe that the rich are undeserving of their wealth, that they do not contribute to the economy and society, that their’s is ill gotton gain, that it is just “unfair.” So, because nearly everyone in the US can think of someone else who is financially better off, The idea of making those guys pay more is appealing to the selfish/jealous human nature. Law makers and the beauracracy have implimented this in the form of tax brackes and our current tax system.

I loved your question. I graduated with a degree in Economics and its nice to get to think about it sometimes.