Why doesnt everyone of all classes pay the same percentage in tax?

The media has with the help of a few ultra rich blown the disparity way out of proportion. There are different types of income and they are tax differently. Capital gains being the best example. Lets say I earn 10,0 from capital gains this year I may or may not be taxed on depending on lots of other factors however I took a risk to make money not you not the government why should it be taxed as the same rate earned income is and I loose up to 1/2 of the gain between federal and state income. One good reason is that if I lost 10,0 I can only take 3,0 as a lose on my return. As convoluted as our tax code is there are very good reasons why it developed the way it did. Taxes in the USA are not just about revenue raising they are also used to induce or punish certain behaviors Best examples of these are excise taxes on booze cigarettes and tax credits for energy improvements to homes. The only absolutely unfair things I see are the carried interest law that allows specialized investors to treat earned income as capital gain (this was a very specific law created to benefit about 1 people-its purpose was essentially because those 1 people can be called upon at any time to create a market for treasuries if needed) and any tax credits for “jobs” or investment like TIF’s that give a business an advantage over existing competition and directly take money from your pocket to mine. All subsidies are wrong.

Actually the richer pay a lot higher rates as a group than the poor, who often pay no tax. I see you have fallen for that class warfare rhetoric that focuses on the few exceptions rather than on the common situation..

If everyone paid the same rates, people who have barely enough to live on would pay a lot more than they do, and they really can’t afford to. That’s why taxes are set up the way they are.

Bitte, to your danke.

B/c a flat tax system would make the poor poorer and the rich richer, and most people find that unfair.

the tax schedules start at 10% and increase as the income rises

the people with the lowest income generally pay 10% or less, and in fact, in many cases none at all

if the people with money have enough ways to reduce their taxable income it rarely is ever less than 10% on that taxable income

because taxes have become a political gold mine … they have gotten corrupted along the way … tax loop holes bought and sold by lobbyist … we should have a flat tax it would make more sense and more effective … taxes are very misunderstood … there is great movie on Netflix that talks honestly and as simply as it can about it I think Norm Chomopsky is in it… An Inconvenient Tax

Source(s): my brain lol