This week in Econ class we learned about how the government fits into a free market economy and about taxes.
Everybody loves taxes
Except for the people who pay them.
But the American tax system is very confusing.
The 4 main tax bases are sales tax (tax on stuff you buy), individual income tax (tax on the money you make), corporate income tax (tax on the amount a business makes), and property tax (tax on what your land is worth).
There are 3 different kinds of taxes on those things though: Progressive, Regressive, and Flat
Progressive taxes mean the poorer people pay a lower percent and the richer pay a higher percent.
Regressive taxes mean the poor pay a higher percent and the rich pay a lower percent. (why they even came up with that idea is stupid)
Flat taxes mean that everybody pays the same percent.
For the most part the US has a progressive tax. But there are so many loopholes for the rich to lower the percentage they have to pay they almost never pay the normal amount they'd owe.
Many people want to remove many loopholes and extremely simplify the way taxes work in our country. I think this would be good to do but we would need a system that benefits everyone.
We can't tax the poor too much and can't leave too many loopholes for the rich.
Always remember!
THE+I.R.S.=THEIRS
I like your IRS description at the bottom. It is so true I didn't even notice. It is almost like the government wanted the rich to pay less money and so they put the loopholes in on purpose. You can't just put in a loophole without knowing about it.
ReplyDeleteI like the I.R.S. at the bottom. Its true nobody likes taxes. Its true about the I.R.S. Its like the the government wants the rich to pay more.
ReplyDeleteAww all my pictures didn't show up...
ReplyDelete