Progressive Taxation: Why The System Went WrongRick Goldfeller
June 12, 2009 — 1,334 views
The basic concept of charging taxes on an individual's source of income is for the purpose of funding the government's projects and other related improvements. You've probably heard that taxes can come in different forms, unless you haven't reached the age of paying taxes, or you're really that ignorant. One variation of "the government's share of your income" is known as progressive taxation. Hopefully you've heard of this and know how it works, coz if not, I'll be forced to give you a boring yet simple explanation. But since it's impossible for me to get any feedback from the readers, I'll have to explain it anyway, so here goes: progressive taxation basically works by charging a larger percentage of the incomes belonging to the larger income bracket.
What that means is: the more you earn, the more you have to pay. This is also considered to be a form of graduated tax, due to the fact that there's that the increase in percentage due is proportionate to the increase of the money you earn. This is only fair (it's fair to me, I don't know about you), since the rich got their stream of cash flowing at excessive rates, while the middle class and below have too much of a hard time struggling with debt problems and other financial issues without taxes. The revenue gained from progressive taxation would be put to good use for economic and political activities, naturally.
But nothing ever does function as planned, and the current tax system we speak of is no exemption. Here's a fact that you probably already know: the rich have come up with tax relief strategies that keep them from being heavily taxed. Yeah they're that smart, and many people have taken notice of this. They know how to play the tax game, and beat it. Ultimately, plenty of people not even being anywhere near well-off find themselves paying more than those with an abundance of dough. There are also selfish pricks making use of tax evasion strategies as to give themselves a seriously big break from making the necessary payments.
Though the government has made several amendments to the system of revenue collection, for the sake of "trying" to please their supporters and select portions of the society, it still isn't good enough, why? There are still tons of individuals complaining - proof of that would be organizations popping out everywhere, with the sole purpose of fighting the progressive taxation system. You can see some of them on the streets, you know, the guys with placards with names of some politicians. They're screaming like banshees in protest of what the governing body has implemented, sometimes even resulting to violence, which in includes hurling rocks and other inanimate objects.
Not everybody gets things done that way though, some deal with the situation in a more subtle manner. These peaceful people take matters to the court of law, through formal discussions and debate, with the hopes of implementing change. But the most important thing that you should always remember is not to blame the wealthy. There are actually plenty of people getting angry at them, but they shouldn't, coz they've only taken legal methods of alleviating the taxes placed on their shoulders. Since change isn't taking place yet, you might wanna consider adopting their methods of tax relief.
About the Author
The author of this article Rick Goldfeller is a successful underground Financial Analyst who has been advising and coaching individuals for many years. Rick recently published a book on how to manage your money and attract Wealth and Financial Freedom. More info on his Finance Planning course is available at http://www.SaveWhileYouSpend.com.