Low income individuals and individuals should be entitled to special tax breaks.Since the tax system is considered regressive by manyin the name of justice poor families and individuals should be given a tax break.Another reason for this would be a type of work incentive that would discourage people from strictly surviving on welfare.
Low income families and individuals should be entitled to special tax breaks. They should not be exempt from taxes, but they should certainly get some tax breaks. Those in the lower and middle classes are struggling enough as it is, and they deserve some relief. Some special tax breaks could provide them with that.
Here in the United States of America we should have certain tax laws for people that are fair to them based on their income levels on how much that they do make. People who do not make as much in a year should not have to pay as much taxes.
It is a myth that only low income people and families get special tax breaks from the government. Wealthy people and big corporations get a lot of tax help and many different tax breaks from the government, although this assistance is couched under different terms. So low income people should get breaks, too.
Generally, there are three types of tax according to the ability of consumer to purchase goods and services, and these are as follow: (a) Progressive tax, (b) Proportional tax and (c) Regressive tax. Firstly, progressive tax refers to the increase of the tax as you increase your income. So in here, the rich has the disadvantage and well, obviously, the poor gets the advantage. Second is the proportional tax. From the term itself, proportional tax gives a certain percentage rate of tax regardless of your income. For example, 15% is the tax rate for all the citizens of the Philippines regardless of whether they are rich or poor. Finally, the regressive tax is the opposite of the progressive tax. That means to say that the richer you get, the lesser tax you'll pay.
Base on the three types of tax, I think it is better if the government use the last one- regressive tax. Poor or families with low income should not be given a special tax breaks. I'm not mean or cruel or anything synonymous to those words. Let us be more practical. Actually, regressive tax collects larger taxes from the poor people so as for them to be encouraged. Basically, the goal of this particular type of tax is to help poor people become rich. How? If the government will collect larger amount of money from the poor and lesser from rich people, the tendency is that the poor tend to work hard at the thought that if they'll get rich, then they don't have to face the consequences in paying larger amount of tax. That, of course, is based in an average scale. The only problem with this type of tax is from the government itself. That is, the revenue that they get from the tax of the people should be equal to their expenditure to equally compensate the people and the community and it should not therefore be corrupted.
So far, I am just trying to be practical by giving tons of advice. Personally, I'm not really against the special tax breaks granted to the poor family. Of course, I have mercy and I'm actually one of them. Basically, what I want to see in the comment is arguments and resolutions to the prevailing problem that is the topic. So therefore, to be able to make that happen, I have to delve different idea that is not really what I want to argue with. Let us be open to possibilities. :))