Title: The Different Types of Taxation System | Suraj's Econ Blog
Headings: 
The Different Types of Taxation System
Direct Taxation:
PROS & CONS
Progressive Tax:
Regressive Tax:
Proportional Tax:
Evaluation:

Content: Progressive taxes is not meant to discipline or hurt the high-income people who have succeeded but it is trying to help and protect the people who have not yet reached the high-income level or to the people who have not succeeded. This would mean, this taxation system would help to reduce the poverty level of a country. On the other hand, economists would believe that the progressive tax system is unfair to the rich since they are being penalized for their success. As mentioned above, the rich people would argue that they should get either rewarded for getting a high income or should not be taxed really high. This may be a more psychological argument, but I think it would make sense as long as the rich are able to pay for their basic necessities and also be able to consume. The question about this taxation system may be, “does it really help the poor?” I think that it would help to diminish the poverty level in a country. Since a person from the low-income group would pay a less tax rate, it would mean that they would have more money to pay for the basic necessities for survival since this takes a huge part in a person’s income. Posted in Section 3 |