Is the mindset Americans have towards the income tax wrong?

Asked by: benschroeder43
  • Think about it this way.

    The way most of us look at the income tax is like this: "I make X dollars from work, but now I only make X-(tax) dollars". Which makes it appear as if the government is just taking away our money. However, I believe it needs to be looked at this way: "I make Z dollars," where Z is equal to X-(tax) dollars. The thing is we technically do this already with our jobs: "I make B dollars," where B is (how much the employer can afford to pay me) - (how much they choose to pay them selves). We don't say: "I technically make $12/hr but my employer pays himself $4/hr from my $12, so I only make $8/hr." The difference is just how we look at it. If one is okay with the employer paying themselves more, when they could be paying the workers more, then they should also be okay with the government paying themselves more. In other words, we should look at the income tax like this: "I make $80,000 a year," instead of "I make $120,000 a year, but the government takes away $40,000."

  • No. Income tax is wrong because of the type of taxation system used.

    Income tax is necessary to provide funding for certain general resources such as roads repairing. However, the taxation system is wrong. It should not be a progressive tax system with so many exemptions etc. It should be a straight forward flat rate tax system with no deduction and a minimum income tax which is tied in with the minimum wage.

    Say flat rate tax is set as X% of income. Minimum wage is set at $Y/hr and your annual salary is Z. Then the minimum income tax that an individual (not in school full time) must pay will be
    max(52*40*Y*X/100, Z*X/100). For those in school full time then their income tax will be Z*X/100.

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