For this Economic Debate, we are going to discuss the tax system in the United States. We currently operate under a progressive income tax. I encourage you to look this up, but in essence, it means that the more money you earn (through income, we are not talking about investments and capital gains), the more, in taxes, you pay.
Advocates of the progressive tax argue that if you make so much more, you can afford a higher share of the government expense. After all, if you’ve been blessed with so much wealth, you should pay a little extra so that others can benefit from government services!
Opponents to the progressive tax argue that more factors go into wealth than just luck. If you work harder and put in more time, you deserve the extra earnings. After all, if you work more hours, invest more in yourself, and sacrificed more in the short-term, you should reap the benefits and benefit from those good decisions you’ve made!
I’ve attached a few resources to give you deeper insight to the debate on the progressive income tax. Some of the material is heavily in favor, some is heavily opposed, and some argue a slightly different approach. Also, you are not bound to the resource I have provided. If you do your own research, that is fine as long as you are using reputable sources.
Using your understanding of economics, answer the question:
Do you think the Progressive Income Tax is overall good or bad for America? Why or why not?
Remember, if we are thinking like economists, the word “greed” should not factor into our discussion. “Self-Interest” exists, which means that we expect each person to make the most rational decision that will benefit them.
So, given this discussion and the attached material, in 175 words or more, tell which approach you would implement if you were the sole decision maker. Be sure to include the BEST arguments from both sides in your discussion, but ultimately, you should choose one side. (You may offer a third solution if interested, but it should be very clear where you stand on the issue).