The Instigator
ARanneyNHS
Con (against)
Tied
0 Points
The Contender
BOConnell
Pro (for)
Tied
0 Points

Should wealthier individuals be required to pay higher taxes in the U.S.?

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Voting Style: Open Point System: 7 Point
Started: 10/15/2013 Category: Economics
Updated: 3 years ago Status: Post Voting Period
Viewed: 1,285 times Debate No: 38923
Debate Rounds (5)
Comments (8)
Votes (0)

 

ARanneyNHS

Con

Wealthy individuals should not be taxed more than low-income individuals simply because it would not be fair. If an individual went to school and obtained a high-paying job, then why should they be penalized for their earnings? Tax brackets have changed drastically overtime, increasing the amount of taxes someone has to pay based on thier income. In 1986, there were only two tax rates;15% and 28%. Now, there are seven income tax brackets, ranging from 10% to a high of nearly 40% (1). Wealthier individuals are being taxed up to four times as much as a low-income individuals. High-income individuals are already paying the majority of the federal income taxes in the United States, contrary to what most believe. The top 10 percent of taxpayers paid over 70% of the total amount collected in federal income taxes in 2010 (2). That in itself is why everyone should be taxed fairly, not based on income. Raising taxes on the rich is wrong in many ways. Stephen King said that, "Cutting spending is the best way to reduce the federal deficit-- not forcing job creators to surrender more of their money to the federal government" (3). Many believe that the best way to reduce deficit is to increase taxes on wealthy individuals, which proved to be untrue.

(1), (2): http://money.cnn.com...;

(3): http://m.freedomworks.org...
BOConnell

Pro

Wealthy individuals who are apart of the top 10% should be taxed more than the bottom 90%. (1) Warren Buffet who is said to be the third richest man in the world by making most of his money investing in stocks believes that the rich should be taxed more.(2) In 2011 Warren Buffet said that he paid an effective tax of 17.4 percent. He then went on and said that people who worked in his office building were paying a much higher effective tax rate which was between 33 and 41 percent, which is almost an average of 36 percent. If Warren Buffet has billions of dollars he should be paying more in taxes then people who have less money and make less money in a year, he knows that he should be taxed more and many other people who have millions of dollars even billions of dollars say they want to pay more in taxes. (3)Stephen Prince who is also apart of the top 10 percent also says that the wealthy should also pay more in taxes because they have more money to spend then the bottom 90 percent.

(1) http://www.4-traders.com...
(2)http://www.politifact.com...
(3) http://www.npr.org...
Debate Round No. 1
ARanneyNHS

Con

It would not be fair to tax the top 10 percent just because they have more money to spend. Tax rates should not be based on how much you make annually. Raising taxes on wealthy individuals would reduce job opportunities because they would feel the need to cut spending. There should be a flat tax rate in place to provide a fair tax rate for all. Any tax rate that is not based off of income would be more beneficial. Flat tax rates have already proven to be successful. In 2001, Russia replaced its progressive tax rate with a single flat rate of 13 percent for all. When people find their taxes to be low and sensible, they are willing to produce and invest more. In just the first year of implementation, Russia's Gross Domestic Product (GDP) grew a drastic 5 percent (1). A low tax rate would stimulate the economy. Creating a flat tax rate would benefit the high income individuals that are being affected by the current tax rates the most. The high income individuals would still be paying more money than low income individuals simply because it would be a percentage of their income, but it would keep fairness in play. Fairness would be the main feature of the flat tax rate. For example, a taxpayer who makes $5,000 pays the same tax rate as someone who earns $500,000. The taxpayer making $500,000 pays more taxes because the income is greater, however, this taxpayer pays an equal percent to the $5,000 taxpayer. This tax system does not unfairly tax based on income level; everyone pays the same percent of income. (2) This type of tax system would eliminate all discrimination and promote more investing and keep jobs that wealthy individuals create, in place.

(1): http://www.foxnews.com...
(2): http://smallbusiness.chron.com...
BOConnell

Pro

Having a flat tax rate would not be better, because it does not help the economy grow.(1) In the years after WWII taxes were higher for the people who had higher incomes, which helped the economy grow much faster, but once they made the tax rate slashes in 1981 the economy has not grown as fast since then. If having higher taxes for the people who have higher income helps the economy grow faster, our country should raise the top 10 percent's taxes, because we are in need for our economy to grow faster because we are greatly in dept. In the 1990's when Bill Clinton was the president of the United States he raised the taxes on the wealthy which helped produce faster job growth and higher wages, but when George W. Bush took office he had slashed the taxes on the wealthy it did not help produce faster job growth and higher wages. These are two prime example of why we need to tax the top 10 percent more because in the United States past history it has proven that it will greatly help out our countries economy. (2) Studies showed that in 2011, 25 of the United States most profitable companies paid there CEOS more than they paid for there entire corporations taxes. By raising the taxes on these wealthy CEOS and other top 10 percent wealthy people it will help put more money into the pockets of the middle and lower class, which will help them out greatly because most of those people are struggling to feed there family's and pay high taxes. Raising taxes would not only help grow our economy faster but it would also help out the middle and lower class citizens, which is what we want. It is time for change from cutting the taxes on the rich which has only made them even more money and even more richer then they were before, we need to raise the taxes on them to help out our economy which is in the gutter right now

(1) http://www.marketplace.org...
(2) http://www.cnn.com...
Debate Round No. 2
ARanneyNHS

Con

Raising taxes on the top 10% does not help the economy grow, it does the exact opposite. Middle and lower class are also not paying high taxes. The current tax rates are based on salary which means that middle and lower class pay the lowest percent on taxes. Tax increases usually have a negative effect on the economy, since consumers have far less money to spend and invest. This actually slows the economy and consequently decreases revenue, since the incomes are smaller. By keeping the taxes low for all, or at a flat rate, there will be higher potential profit. Individuals are more likely to invest and start new businesses when they have lower taxes (1). Tax cuts actually create jobs. Tax cuts spur economic activity and expand the economy wherever they're tried. The result is more government revenue, not less. In Ontario, Canada, this theory was tried. The government had substantial cut taxes on both people and businesses and carried through other pro-growth policies like balancing the budget. The result of the tax cuts was over a million net new jobs, credit rating upgrades and a 35 percent increase in tax revenues (2). Tax cuts have proven to be effective. During Bush's presidency, he used tax cuts which were successful. During the Presidency after the 2003 reduction in tax rates, the U.S. saw a 44% increase in Federal tax revenues from $1.782 trillion to $2.568 trillion. A 44% increase in revenues after the "tax break for the wealthy." (3)

(1): http://www.balancedpolitics.org...
(2): http://www.huffingtonpost.ca...
(3): http://www.forbes.com...
BOConnell

Pro

By raising the taxes on the top 10 percent does help the economy grow, it also helps many more different things. (1) Some other things that come from raising taxes on the wealthier citizens is that it helps finance more investments in infrastructure and education. These are very vital to keeping our country running and helping our economic prospects of our middle class to grow. Without having more educated citizens in our country it would be harder for our country to grow and our economic status to get better by raising the taxes on the top 10 percent wealthy citizens. (2) Having higher taxes on the top 10 percent wealthy citizens allows for the middle and lower class citizens to have lower taxes. When the middle and lower class has to pay less for taxes it would potentially help restore purchasing power to help keep the economy going and to eventually help it grow. (3) During the 1950s and early 1960s, when America experienced its most impressive stretch of sustained growth, marginal tax rates on the rich were the highest they've ever been which was 91 percent for the top bracket. Meanwhile, during the last decade, when top tax rates were at one of their lowest points in recent history, the US economy experienced its slowest annual growth rate since the Great Depression. Having higher tax rates on the wealthy does not hurt the economy it helps it out by helping it grow faster, and it has been showed that it actually works because it happened in the 1950s and 1960s. Why should everyone pay the same flat tax rate? When having more taxes on the wealthy has been shown to help out our country greatly.

(1(2) http://www.marketplace.org...
(3) http://www.huffingtonpost.com...
Debate Round No. 3
ARanneyNHS

Con

Just because the wealthy have more money, it doesn't mean anyone has a right to that money. The United States is not a socialist country who takes from the rich to give to the poor and it should stay that way. Lowering the taxes for the wealthy will make the economy grow without singling out the wealthy and making them pay more. The economy can be stimulated with both high and low taxes and that is proven, but having low taxes will keep fairness in play while helping economy expand. That is why everyone should play a flat tax. Lowering taxes has shown to be beneficial during President Kennedy, Reagan, and Bush's terms. When President Reagan took office, he proposed tax rate reductions that proved to work. He proposed a 25-percent across-the-board tax cut which was enacted in 1981 (1). As a result of the Reagan tax cuts, the total federal government revenues climbed by 99.4 percent during the 1980s. The average annual growth rate of America's real Gross Domestic Product (GDP) from 1983 to 1989 was 3.8 percent per year, compared with 2.8 percent from 1974 to 1981. By the end of the Reagan years, the American economy was almost one-third larger than it had been before he began. Also, from 1981 through 1989, the U.S. economy produced 17 million new jobs which was roughly 2 million new jobs each year (2). The tax hikes that President Obama has put into place go against what America represents. He is supporting an increase on tax when increasing taxes always has a downside. Over the last 45 years, every time capital gains tax rates have been raised, revenues have fallen, and every time they have been cut, revenues have increased. Obama"s capital gains tax increase will reduce capital gains revenues as well (3). Lowering taxes has proven to work for past presidents and increasing taxes has shown to cause problems. There is no need to raise taxes when all it does is cause fewer jobs, lower wages, higher unemployment, poverty, federal deficits, and national debt.
(1), (2): http://www.discoverthenetworks.org...
(3): http://www.forbes.com...
BOConnell

Pro

Raising taxes on the top 10 percent does help the economy, because having the wealthy have higher taxes the government will take in more money to help out the middle and lower. The lower class needs to be helped by the government because most of them are living in poverty. (1) In 2010, there was around 46 million people that live in the United States lived in poverty. That is the highest it has ever been in the pass 52 years. It is time for a change, we need to help out the lower class because we can not have most of our country live in poverty. By raising the taxes on the wealthy individuals of the United States, that money can go to the government to help those that live in poverty. (2) President Reagan lowered taxes in 1981 but then eventually raised them back up in 1982 and 1983. When he cut the taxes in 1981 the economy went down because having lower taxes was not working for the economy. (3) Data from the past shows that's when taxes are raised on the top wealthy people of America it helps out the middle class individuals and the small business owners. BY raising the taxes on the wealthy, the middle class will not have to worry as much to pay more in taxes, which will encourage them to spend more money at the small business and eventually help those business to keep running.

(1) http://www.cnn.com...
(2) (3) http://www.politicususa.com...
Debate Round No. 4
ARanneyNHS

Con

As previously stated, lowering taxes as well as raising taxes both help stimulate the economy. But, lowering taxes stimulates the economy much better while keeping a fair system in place. Lowering taxes creates new jobs and increases revenue. It also ensures that the government is not taking money from wealthy individuals only to give some of that money to lower class citizens. Raising taxes may produce revenue but it also causes many problems such as fewer jobs and higher unemployment. You stated that, "President Reagan lowered taxes in 1981 but then eventually raised them back up in 1982 and 1983." This is in fact true, but he did not raise taxes on higher class individuals. Reagan and Congress sought to raise taxes on lower incomes and reduce tax rates on the wealthy. This supports my argument that lowering taxes has far more benefits on the economy. It worked for Reagan and other presidents and it can work again if properly implemented. (1) Not only does cutting taxes on the wealthy increase revenue, it also creates more jobs. (2) Also, middle class citizens should not rely on high taxes for wealthy. It is not logical to increase taxes on wealthy individuals just so that the middle class will not have to worry as much about paying taxes, as you stated.

(1): http://en.wikipedia.org...
(2): http://www.discoverthenetworks.org...
BOConnell

Pro

BOConnell forfeited this round.
Debate Round No. 5
8 comments have been posted on this debate. Showing 1 through 8 records.
Posted by kmcgillnhs 3 years ago
kmcgillnhs
This topic is quite an interesting one. #TeamRanney even though I disagree with the subject
Posted by agendreaunhs 3 years ago
agendreaunhs
@dbousquetnhs Please define the word ludacris. #TeamAustin
Posted by agendreaunhs 3 years ago
agendreaunhs
#TeamAustin
Wealthier people should not have to pay higher taxes.
Posted by CMcCaddenNHS 3 years ago
CMcCaddenNHS
Since we're picking sides here I'm gonna go with #TeamArain
Nick Spaulding, I don't understand your arguement. If you think fairness is not reason enough to reduce income tax brackets, then how do you justify the socialistic practice of taking more money from those with higher incomes? This money is essentially redistributed to low income individuals through social welfare programs. Socialism operates on the principle of fairness. Increasing income tax on the wealthy is simply not the solution to any of our nation's economic problems.
Posted by dbousquetnhs 3 years ago
dbousquetnhs
It's absolutley ridiculous to say that the wealthy should pay lower or the same taxes as the poor. The arguement that it's "not fair" for the wealthy to pay more because they "earned" their money is ludacris. #TEAMBRENDAN
Posted by cfossanhs 3 years ago
cfossanhs
#TEAMBRENDAn
Posted by dweckmanNHS 3 years ago
dweckmanNHS
wealthier individuals in the U.S. should not have to pay more in taxes, the nay sayers are ignorant
Posted by Nick_Spaulding 3 years ago
Nick_Spaulding
I agree that they should pay more taxes. It not being fair is not a good answer. This is life and life is not fair. There are decisions that have to be made and i think that this is one of those decisions!
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