Why do the rich pay less taxes?
The income tax system has been corrupted to benefit the investor class / super rich and corporations.The tax system is written by the rich and for the rich. For billionaires, mulit millionaires, and wealthy corporations. These are the people that have the power to influence our Congress through donations for which they expect favorable legislation. The average working person has no influence at all. The super wealthy / investor class pays a lower percentage of their wealth gains than does the average working American, all taxes considered.You will hear conservatives brag about all the Federal income taxes the wealthy pay. But notice they always say “federal income taxes” because they are trying to deceive people by excluding all the other taxes working people pay like payroll taxes, sales taxes, state taxes, property taxes, gas taxes, fees etc.Keep in mind also that for the super wealthy, what they report as “taxable income” is usually the tip of the iceberg of the wealth the are accumulating in stocks, businesses, real estate, artwork and offshore accounts. The vast majority of their gains are never taxed due to loopholes, schemes and clever tax accountants. Plus the laws are designed so that gains in the value of their investments such as real estate and stocks are never taxed unless the asset needs to be sold. And even then there are more loopholes to shield any gains from taxes.10 tax dodges that help the rich get richerColumn: How much do the poor actually pay in taxes? Probably more than you think.
Why do we have to pay tax when we buy something when we already pay taxes from our salary?
First of all it's very good question. But answer to this question is very critical& we have to understand and find to correct information.1.First of all we must to know the what is tax . 2.And why we paying to the tax.1.I hope you know the what is tax.if u don't here for you.Ans: a compulsory contribution to state revenue, levied by the government on workers' income and business profits, or added to the cost of some goods, services, and transactions."higher taxes will dampen consumer spending"It is the responsibility of every citizen to pay their taxes on time but, most of us wonder why we pay such high amounts in taxes. Here are the most important reasons which will satisfy your query and justify the taxes you pay.Hence we have the following 5 reasons to pay our taxes honestly. 1) India needs your contribution to strengthen its defences.2) Government requires money to develop and maintain good infrastructure.3) Money is required to tackle various social challenges.4) Your contribution in the form of Income Tax helps the country in paying back loans.5) Your nation requires monetary funds to handle local and national emergencies.So “when our activities , connected with society. On that time we are the taxpayer's .”Because we are the society , people.Because we are using facilities from society , directly or indirectly. There are services, products, extra…. Every tax has a purpose.“Ofcourse our salary already taxable. But our salary only taxable on what we getting office facilities.” we are using office chair, pens, computer, cars, extra … On this process we damaging nature. Natural elements. So we have cure that , so government do that that's why this type of taxes charged from us.I hope you understand.
Why do some low income people think taxes are fair because of EITC?
Let’s start with the core of your question: What is fair? A simple Google search will answer “adjective: in accordance with the rules or standards; legitimate, adverb: without cheating or trying to achieve unjust advantage”. Existing tax laws would be considered rules and standards and are legitimized by our representative democracy. Whether we consider them to be cheating or unjust becomes a matter of opinion.In most modern democracies, the income tax code has a sliding scale with higher percentages at higher incomes or progressive taxation. In the US that means a couple will pay no taxes on incomes below $24,000 the same amount as the standard deduction. Top earning couples will pay almost 27% on earnings up to $600,000 per year and 37% over that amount (federal) and another 0–10% depending on their state of residence. Of course, there are other details like different rates for money that your money makes (capital gains) and expenses that you can deduct from your taxable income. If you have a low income you might thinks that those at the top should be paying more. If you have a high income you might think that the tax code is stifling reinvestment in the economy. Is the current code fair? By the adjective definition, yes. By the adverb definition it remains a matter of opinion.The earned income tax credit (EITC) adds another calculation for low income filers that includes them in receiving a benefit from their expenses vs. their incomes, especially as relates to the number of dependents. The tax credit is used to offset taxes and can be as much as $6,400 for a married couple with three children and income of less than $51,000 per year. This makes the taxes even more progressive for those with low earnings and high expenses. Is that fair? By the adjective definition, yes. By the adverb definition it remains a matter of opinion.
Why do public sector workers pay income tax?
If they weren't taxed, they couldn't get deductions. That means buying a house would be more expensive as well as saving for retirement, college, medical expenses, etc. It would be harder to compare compensation for public sector workers to private ones and would likely make hireing harder.It would also skew the cost of government programs. Services like the postal service wouldn't see nearly as much savings per worker as postal workers wages are relatively low and taxed at lower levels. Someplace like NASA that employs lots of engineers and high earning individuals would see greater savings as they could pay those employees less who would see a greater tax windfall. It would also have a negative effect on contracting as contractors would likely need to be paid far more to cover the taxes they wouldn't have to pay for government employees.That being said you could overcome all these issue, but if you were hoping to save on administrative costs by not having to deal with taxes, you would likely find the opposite to be true as you would have to constantly monitor and fix the alternative system to keep it fair and sustainable.