A group of economists headed by Sir James Mirrlees, a Nobel -prize winning economist, recently urged world officials “to do more than tinker at the margins”. They argued for an even greater progressive tax( a tax that places burdan on rich) and a simpler tax system. But is this possible? It is true that the United States is leaning towards a progressive tax and it was widely speculated Former President Bush’s tax cut for the rich would not be renewed in the current Obama administration. However, can a tax system focused on equity be simpler? The truth is our tax system is complex due to the diversity of citizens in the United States. It is unlikely a simpler tax is possible for the United States.
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I agree that it would be hard to implement a simpler tax system in the U.S. Many American's feel that the current tax system is too complex but in order to simplify it many tax expenditures would have to be cut. The public would not like this type of a reform. It's better to have a complex tax system that allows benefits for American families than a simplified system that doesn't give breaks to those who need them.
ReplyDeleteThis also goes back to the philosophies we discussed earlier in the semester. Those in favor of the classical liberalism approach would argue that they deserve to reap the benefits of their labors, and that the government doesn’t have a right to take their money. However those in favor of civic republicanism would argue the responsibility of philanthropy, and that we should be sharing our money more widely.
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