EQUALITY. A term used from previous ancestors that came to America for freedom. A term used from Americans that fought for their equal rights today. A term avoided in the state of being taxed. Two out of three tax systems are set to be genuinely unfair to Americans of the lower and upper class: a progressive system and a regressive system. Today, Americans are paying in a progressive tax system which is when the tax rate will increase if the taxable income increases (“Preface to…”). Americans pay an average of 18.2% on federal income, 10.6% on state, 7.65% on social security and Medicaid, 10.3% on sales tax and so forth (“How Much Tax…”). The one system that will work for our nation’s economy and benefit the people is known as the proportional tax system, or better known as flat tax, which is a system in which the tax rate is set rather than varied by income (“Preface to…”). Setting the rate to fifteen percent will benefit all Americans and the economy because the upper class will still pay a big amount and the lower class will pay a small amount on their part. With today’s economy, many employers are bound to cut hours and wages or lose their company causing unemployment. Using the current tax system, many Americans’ earnings are going towards a government that is investing these funds towards unnecessary things.
One problem faced today is the number of Americans unemployed and how many families who are suffering from the poverty rate. Unemployment is a problem discussed and seen throughout America. With the unemployment rate hitting 6.6% in January 2014, the nation should focus on lowering that number so welfare can be a last option for the unemployed. Blacks have the highest unemployment rate of 12.1% followed by Hispanics with 8.4% and whites with 5.7%. Between adult men and women, men have the higher unemployment rate of 6.2% and women with 5.9% (Fedec). With taxes increasing as income increases, people are finding it hard to make a substantial living off what’s left of their income. America should not have to fall into as a poor nation because of taxes.
Another problem that is not seen today throughout the world is amount of money that the government spent on fruitless things. In 2000, federal spending was at 18.2%; in 2007, federal spending was at 19.6%; but in three years since 2089, federal spending reached to 24.4% (Morong). With the economy, the government feels obligated to spend money to prove to America that the government is doing everything they can to help the people and the economy. However with all the spending, the money is being invested towards unnecessary things that are not really needed. So much of the federal taxes are heading towards social security retirement benefits and Medicare insurance which is ruling out the education and other programs for every citizen (Sullivan). Increasing taxes will only leave extra money for the government to spend on unnecessary programs and benefits.
With a flat tax rate, people with a...